July 18, 2014
On our July 11th show we discussed The First Law of Marketing: The Value of Value. The Second Law of Marketing – that all prices are contextual – is just as critical to help your organization communicate value, and help convince your customers to pay for that value.
Most customers are not price sensitive; they are value conscious. So how can you communicate value, rather than simply competing on low price? One of the most customer-centric strategies your company can deploy is to offer an array options to your customers. Customers prefer options, especially in today’s world where they face a plethora of choices regarding who, when, what, and how to patronize a business. We simply must get over the false idea that there is one optimal price for a customer. There is a range of optimal prices, commensurate with the value being created.
We will also discuss Goldilocks pricing, along with the Anchor and Framing Effects involved in pricing.
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