My apologies to all the people that have been trying to access the chart titled ‘different approaches to pricing’ linked from this post. It got lost somehow…it must have been me. Anyway, I’ve recreated it and it can be accessed from the original page: Different approaches to pricing.
It is often said that the way to carve a position in a market is to do things differently from your competitors. This means that in a bundled market you unbundle and conversely in an unbundled market you bundle.
The advantages are that direct comparisons on price and service are made difficult and your brand never appears to be one of the pack.
a) A product brand is what the customer will pay for over and above the commodity price of the ingredients, and
b) A service brand is what the customer pays for over the simple cost of providing the service.
You know, I really don’t like shopping at Asda. But you never know, I could get converted. Recently I have been impressed with a number of their marketing activities:
I’ve heard some really good things about the way Asda motivate and acknowledge their staff. It sounds like they are setting a standard in the supermarket sector.
Asda seem to have managed to manipulate average basket prices to be frequently the lowest and sometimes half the price of Waitrose.
And now Asda plans to launch its own social networking site, designed to increase customer interaction. A brave move perhaps? Some people are wondering whether the supermarket chain is opening itself up to potential criticism from any disgruntled shoppers that may be out there. But frankly, they are better off hearing the feedback and addressing it than ignoring it and letting customers migrate.
So well done Asda. From my point of view choice and quality are things I want to hear are progressing and then I’ll be back to have a look.
Ignore sales promotions, put your prices up and most customers probably don’t care…assuming they notice.
The “big four” of supermarkets, Asda, Tesco, Morrisons and Sainsbury’s, have increased the number of £1 promotional price tags 150% over the past year. This compared with a 6% increase in their general promotions, according to a report compiled on behalf of industry magazine the Grocer.
Cost plus pricing is one of the biggest evils within businesses. It appears the safe approach but fails to maximise opportunity. Also, taking this approach, sale prices tend to erode to the level of cost prices. This is unacceptable for most businesses.
One of the concepts on the chart is the diamond-water paradox:
The diamond-water paradox is the apparent contradiction, or paradox, that although water is on the whole more useful, in terms of survival, than diamonds, diamonds command a higher price in the market.
Can you suggest any more approached to pricing that I can add to the chart?
Incoming search terms:
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