High and low prices meet, why high prices always lose?

In fact, the low price in the market is usually just playing the role of "aggravating", not enough, bull. In confrontational competition, high prices are often distracted or even scared by low prices, but low prices are always hard to beat, even in the face of high prices.

We often find that the worst-selling goods in the market are usually the lowest-priced goods. Unless there is an absolute cost advantage and product structure advantages, low price is no longer a conventional means of competition, but a strategic competitive means. In conventional price competition, low prices are often seen by experienced marketers as the "lifeline" of desperate people, and are often the last straw that crushes camels.

Price level is not a pure pricing problem, but the core issue of marketing. Marketing Master Kotler said: "You are not selling products by price, but selling prices." "The teacher said:" Sales are sold through the price of products, marketing is through the product to sell the price. ”

The price and the marketing activities around the support price constitute the marketing system. Low or high price, in fact, is the difference between sales and marketing.

We often see that low price determines the core element of marketing can only be price, because the low price can not support other marketing activities. The high price determines that its marketing activities can be rich and diverse, which is determined by the policy space generated by prices.

It is the normal of the market to beat the low price, and to beat the high price is the case. Of course, the strategic price war is the exception in the industrial concentration process. Marketing is selling prices, learn to sell prices to understand the true meaning of marketing. The public "common sense" of price is precisely the misunderstanding of marketing professional angle.

Low-priced incompetence

No matter what the price, need the corresponding marketing activities to prove the price of rationality, legitimacy, to obtain price identification (whether the value of this price). But this is precisely the misunderstanding that many people understand.

Many people understand that high prices need to be supported by marketing activities, and low prices do not need to, because the low price itself is proof. Sales of "fighter" search "sales" the word pay attention to us.

We often see that the "Naked price" listing is basically a failure. The so-called "naked price" is the price in the end, in addition, there is no marketing costs. "Naked Price" listed products, in addition to the initial listing may be caused by the channel, it is basically difficult to have an impact on consumers.

Consumer purchases must be based on their acceptance of the product. This identity stems from packaging, price, consumption experience (such as tasting, trial), marketing, brand communication and so on. After the product is listed, in addition to packaging and price identification, other identification methods need a certain degree of marketing support

Price identification has two concepts: first, the price itself, that is, the price level, this identification does not produce the purchase behavior, the second is the relationship between price and value, that is, whether the product is worth this price, which is the difference between price and value.

The low price itself produces only the first kind of approval, not the second. The second type of identification is the recognition that comes after the consumer experience and market promotion.

Price identification is not derived from price itself, but from marketing activities that prove its value. and marketing activities need marketing policy support, this policy is not the sky fell.

Some people think that the big Enterprise's marketing policy is good because the enterprise resources are many, this is the misunderstanding. The initial policy input is only the advance of resources, not free use, is to reserve price space and future sales reimbursement.

The correct price thinking is: The new product when the price should be a little higher, and then the profit space advance out, used to carry out marketing activities, marketing activities to support the consumer recognition of the price.

The so-called marketing is the sale price, roughly this meaning.

Of course, we cannot infer that the higher the price the better, but the need to do a good job of price and marketing costs balance. Because the higher the price, the more you need to invest more effort to ensure that prices agree.

In addition to the special cases of strategic low prices that have strategic costs, we can find a basic phenomenon: price is proportional to the marketing ability of the enterprise. Of course, it is difficult to speculate whether this is because of the low price and loss of marketing ability, or because of low marketing ability to set a high price.

In most cases, the price and marketing capacity are mutually causal relationship, because the marketing ability is low, so have to set a low price, because the price is low, so lack of cost support and performance is low marketing ability.

Some enterprises, although the price is low, but the initial marketing activities to do a lot. In the early days, the practice could be quick and likely to succeed. Now, however, the market threshold has been very high, the "fast" of the play has been not the spirit.

It is difficult to do the market, to require continuous investment, without long-term policy support. A lot of people in the competition goods short-term low price before sinking gas, disorderly, was lured into the water. The normal phenomenon of the market is: Low price you sang his debut, and the high-priced Kuiranbudong.

The energy behind the high price

Market activity is more likely to attract consumers ' attention than price. Low-priced products are often silent, and high-priced products are often active.

In the terminal market, there is a very special phenomenon: Best-selling products are often not the lowest prices of goods, nor is the highest brand awareness of the goods, but the market performance of the most active goods.

In the terminal market, there is a phenomenon of "brand similarity", that is, the brand entering the terminal display is basically the brand that is recognized by the market. Even in the terminal market there is a "brand coverage" phenomenon, that is, commercial brands (such as Wal-Mart) "cover" the manufacturer's brand (such as Procter and Gamble), that is, as long as the terminal identity, consumers will also be basic recognition.

In the terminal market, the commodity is very rich, brand identity overall is very high, who is active, who is more likely to cause consumer concern. Consumer focus is one of the key factors in consumer buying.

Under the real business ecology of China, it is necessary to be paid attention to. The manufacturer pays the fee, the merchant gives you the terminal performance opportunity. At present, the terminal most commonly used performance means is the promotion and promotion, these all need to spend money. Terminals charge a wide variety of fees, in fact, the manufacturers competition terminal performance results. Manufacturers are willing to spend the money to prove that the terminal performance is effective.

In addition to causing consumer attention, the other effect is to let consumers "take advantage of". Cheap is different from "take advantage", when consumers ask "can be cheaper", do not misunderstand that as long as the price is lower, consumers will buy.

In fact, the consumer this sentence conveys two meanings: first, to identify products and prices, there is a purchase intention to "bargain"; second, we hope that the price based on "preferential" point, the discount can increase the purchase determination. Consumer expression of "preferential" meaning, often misunderstood as "cheap", in fact, concessions are "advantage."

Allowing consumers to "take advantage" means that the firm has two pricing steps: One is dominant, the price is usually higher, and the other is the implicit pricing that drops the deal price. This process can give consumers the feeling of "taking advantage".

If there is only one pricing step, consumers will not have the feeling of "taking advantage". In the terminal engaged in various promotions, promotional activities, aside from the theme of the cover-up, in fact, in order to let consumers have "take advantage" of the feeling. Those themes are just for "justify".

High price thrust

New product listing, Price is the cognitive means. After the product establishes the popularity, the price is the competition method.

New products are listed, supplemented by the dissemination of large intensity, access to this treatment of new products are not many, most new products are unknown to the listing. New products on the market, consumers lack of consumer experience, based on what the product to make judgments? You know, if consumers can't make judgments, it's hard for consumers to make a purchase decision. The Chinese proverb says, "A penny is a penny," not "a penny at a price." For people without a consumer experience, Price is the label of quality, not the other way around.

The prices of new products are often not used for sale, but for positioning products. The message of high price is a position in itself.

Of course, high prices do not necessarily directly allow consumers to produce high-quality feeling, but low prices but it is easy for consumers to form a low quality impression.

For the channel business, the most concern is not so much the price, but the price space, that is, profit. In the actual sales, we see the most sensitive to the price is not the consumer, but the channel business, salesman. The channel business is more sensitive to profit than to price sensitive. When a channel trader asks for a lower price, he is not going to sell it at a low price, but to get a higher margin.

Some operating ability than the strong channel to get low-cost products, at high prices, may also do some marketing promotional activities themselves. Marketing capacity of the channel, if you get low-priced goods after the price of sales, the latter usually will be again to the manufacturers policy.

In the channel sales, manufacturers not only to formulate ex-factory prices, but also to formulate price system, the price system is Maori space. The price is too low, means that the margin of the channel is small, margin space is small, means that the channel recommended less enthusiasm. If it is a well-known commodity, there is no recommendation may also be unsolicited purchase; if it is a well-known commodity, the lack of Maori space means the loss of the recommended opportunity.

Non-well-known commodity best-selling, in addition to the promotion of manufacturers pull, the most important is the initiative of the Channel recommendations. If cannot become the channel business "The first pushes the product", the non-well-known commodity best-selling possibility is very small.

Is it low or high?

Marketing has a basic Law: High prices listed, first difficult after easy, low price listing, first easy after difficult.

For price-sensitive consumers, it is easy to be tempted by low prices. If you can be tempted by your low price, it is also easy to be tempted by other low prices. Therefore, the price-sensitive consumers, loyalty is not high. On the contrary, the price is not sensitive to consumers, it is difficult to be tempted, but once moved, is very loyal. Therefore, low-cost consumers are difficult to accumulate, mainly loyalty is not high. High-priced consumers can be accumulated, can be repeated consumption.

The growth of the market is to accumulate valuable consumer groups.

In an extremely competitive environment, only a few brands have the ability to increase prices, such as luxury goods. In most cases, the price trend is "go low". A few people expect to open the market at low prices, and then the price increases, which is a very good idea, most does not work.

High prices and low walking, in fact, in line with the principle of consumer psychology. According to the law of consumption, only about 5% of the people are early consumers, they are not sensitive to price, only sensitive to fresh things.

Price itself is not positioning, but the price determines the consumer group, the consumer group determines the positioning, so the price itself has the significance of positioning.

Now the IT product listing basically adopted the "go Low" strategy, the price "opened" is to screen consumers, so that the usual price screening consumers to product positioning.

Price positioning is to form some kind of symbol. If this symbol is popular, then, in the process of "low walk", more consumers can be mobilized to buy, especially those who do not have the purchasing power when the price is "higher".