Is Your Pricing Strategy Costing You Customers?
Do you suffer from shiny object syndrome? When a new glitzy marketing strategy hits the market, do you shift focus and put all of your marketing spending towards the fresh new approach?
It’s a common problem I see. Companies want to innovate, and they should. But in doing so, they flit and flutter between strategies, focusing only on what’s new and fresh at the time.
Enter Holistic Marketing
Holistic marketing is a healthier strategy. Instead of focusing exclusively on one approach, it incorporates a variety of media, channels, and strategies into one plan.
The dictionary defines holistic as “characterized by the belief that the parts of something are intimately interconnected and explicable only by reference to the whole.” In the marketing world, a holistic approach brings all channels together to work cohesively toward one common goal. By aligning strategies instead of having them work independently of each other, businesses see a far bigger return.
Holistic Marketing and Pricing
In the traditional marketing mix, pricing (one of the famous 4 P's) directly correlates with how a product is positioned in the market. For example, it’s difficult to promote a product as a luxury brand when it is priced for the dollar store.
There is tremendous overlap between the price you choose and how you market your product or service. Price it too high and you could miss the mark with your target audience. Price it too low and you could convey a sense of cheapness rather than quality. Price it just right and you’ll have the sweet spot that will help solidify your goals across all marketing channels.
This isn’t always an easy task. For example, you might want to price your product lower in-store than online because it is positioned directly next to several of your competitor products. However, taking a holistic approach will keep your brand image consistent.
With a holistic pricing strategy in mind, it’s a good idea to take a second look at what you’re currently doing.
1. Look at Your Competition
To start, look at your competition. How are they pricing their products in stores and online? Is their pricing consistent? Is it on par with yours?
Look closely at how the product stacks up. If it’s a lesser quality than yours, does your product packaging and sales copy convey that message? If so, you can (and should) price your product higher.
2. Determine Your Product Positioning
Once you know where your product stands in the market, it’s time to position your brand to sell across all channels. Sometimes, this means pricing your product higher than the competition, and that’s okay. A higher price can signal higher quality, which can spur sales instead of causing you to lose customers.
Determine how you want to promote your product, who your target market is, and the places where you’ll sell. By getting strategic with the big picture, you will have a better foundation to make consistent marketing decisions across all platforms.
3. Set Your Price
Finally, with your competition and your product’s market position in mind, it’s time to set your price. Are you currently priced too low? Does your price vary wildly across channels? Are you losing a chunk of your target market because of how your product is priced? Adjust as needed.
Takeaways
Marketing shouldn’t be broken down into separate silos. Even if you’ve gone through these steps before, it’s worthwhile to take the time to perform another analysis. Find where you best fit in the marketplace, and then look at your pricing strategy. You might be surprised to find out how much money you’re leaving on the table by pricing too low or too high.
