From La Cultura del Marketing we boast of being one of the few blogs, of all of us who Vatican City Email List cohabit in the blogosphere, that speak and deal with marketing in all its aspects and facets, trying to offer a 360-degree vision that covers from how to make a plan of annual marketing to a basic guide to Google Adwords , or from the most classic definition of strategic marketing to how to do SEO but with common sense … that’s why once again we delve into the basic pillars of traditional marketing, the well-known 4 P´S: product, price, promotion and distribution (product, price, place, and promotion) that make up the marketing mix, to focus this time on price, the least valued “P” of the marketing mix. Every day we come across companies that at the slightest setback or adversity, the first thing they do is reduce the price just below the closest competitor or who believe that more customers “take away, with the intention that in this way they will be able to gain market share.
or lose no more. The problem is that it is at that same moment when the competitor discovers the maneuver, and, of course, repeats exactly the same operation … this “covert war”, at a given moment, condemns one of the two or both, to sell without margin on sales and even to sell at a loss… .the rest you can imagine. Those who know me know that I always affirm that to lower prices you do not have to be a graduate or doctorate or a marketing expert !!! It is time for small and medium-sized companies to understand that price is a critical variable within the marketing strategy of any company, and that for this reason before deliberately “touching” it down or up, it is necessary to stop and think what is the best solution, analyzing in detail the problem, the marketing mix, the strategy and designing a custom action plan.
Price concept As we always try to do, we like to give an academic and formal definition of the concepts on which we give our opinion, and this time we are going to go to Kotler, who better, who defines the price as: ” The sum of values that potential customers give in exchange for the benefits of having or using the product or service they are going to acquire …” Therefore it is evident that the price is something more than the monetary value that a customer pays for acquiring a product, since it encompasses brand values, the eu phone number feeling of belonging, the perception and value granted by the customer … entering the world of subjectivity. Also, price is the only variable in the marketing mix that really generates income ! Put in value In marketing, price plays a fundamental role, as it is a tool that allows us to: – Launch actions in the short term, such as promotions, offers, discounts, rebates … – Establish a price structure for the long term that gives us coherence as a brand and trust in the client. – It is a competitive instrument against the market.