In many industries, pricing remains relatively consistent. Occasionally a competitor will lower his price, relative to others, in an effort to gain market share. Before you lower your price and begin the downward spiral of discounting, learn from others who have faced similar challenges.
One business who started to lose share when a competitor reduced prices across the board. Not knowing how to respond, they continued to use their traditional selling approach of promoting value. This traditional method had a negative impact on sales as smart buyers claimed they could get the same value for less by going with the competitor who recently reduced prices.
Focus on the Unique Selling Point
In order to differentiate its products from the competitor, the company needed to take stock and identify what they could offer that the competitor(s) could not. This would allow for a new approach that emphasized the unique selling point of their product.
One of the services they provided in conjunction with the product they were offering was quick delivery. This had been a built-in benefit of the purchase process for so long that the company no longer considered it to be a key differentiator in the marketplace - but it was.
The company refocused their marketing efforts by emphasizing the service and benefits of quick delivery. Additionally, they told the salespeople to discuss the importance of quick delivery with prospective customers. In the months that followed, sales increased dramatically and marketing share increased.
When faced with a competitive threat or pricing pressures, consider the unique aspects of your offering or what you can provide that your competitor's can't. This helps you to compete on something other than price.
http://www.marketingscoop.com/low-price-marketshare.htm
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