Value Marketing: Making the price factor irrelevant

Source: Internet
Author: User

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Now in the market, the product of a unsalable, most enterprises think that the product has been a lack of competitiveness, hastily increase advertising investment, improve promotional efforts, upgrade or eliminate products, etc., the most commonly used method is to reduce prices. Price cuts do boost sales, but they also lose profits and may damage the brand's image. And, in today's homogeneous market, where you lower your price and your competitors go down, or even more, the price of what someone calls "the ultimate weapon of the market" is going to be a loss. Simple price reduction in today's market environment has become low and weak, then, Is there any way to promote sales without lowering prices?

There is a "theory of alienation" in western management, for us to get out of the predicament has some help, but the transfer theory is not from the market perspective, but based on the theory of deduction, lack of specific methods of operation, coupled with the theory proposed by the period is very long ago, the market situation has undergone great changes, therefore, In today's market, the theory of alienation is only a business concept, and the operational value is not significant. The author on many years of market combat experience, summed up a set of Chinese market in line with the actual situation of customer transfer operation method, defined as the transfer marketing. This set of methods can help enterprises without losing profits at the same time, so that consumers can also be satisfied with the value of the goods, to achieve a mutually beneficial outcome of the transaction.

The balance of commodity value and purchase cost

Commodity value refers to the general benefits that a customer can obtain from a certain commodity, including physical attributes and spiritual feelings, but, although there is a consumer's interest in a certain commodity, it is not necessarily going to buy, because there is another important factor that is the purchase cost. Before the consumer decides to buy and put the product on the real scale, is to first in the heart of this invisible balance on the measurement, the two ends of the balance is the purchase cost and commodity value, when the balance of the purchase cost side of the increase, it is difficult to reach a deal, and the balance in favor of commodity value, the transaction can be successfully achieved. Therefore, only the value of goods and the cost of purchase in the hearts of consumers to achieve a balance or have a higher value of goods to determine, consumers may buy.

At this time we can draw a consumer psychological balance chart, one side of the balance list the value that the consumer buys goods, the other side is the various cost that the customer buys the goods. We now just increase the value of the balance on the side of the chips, while reducing the cost of each customer's purchase, the merchandise will be easy to sell. However, business knowledge tells us that increasing the value of goods and reducing the cost of purchasing consumers will increase the operating costs of enterprises. So, how to improve the value of the goods and reduce the cost of the consumers while not raising the operating cost or raising the operating cost as little as possible?

Reduce customer purchase costs

According to the different industry, the composition of consumer purchase cost is also different, roughly can be divided into 4 kinds: time cost, physical cost, risk cost and choice cost. We use the following methods to reduce or eliminate these costs, thereby promoting consumers ' willingness to buy.

1. Time Cost

In today's fast-paced society, the time cost has become the consumer consumption process very important value reference factor, for example, we often complain that waits for the bus, the shopping checkout waste time or the delivery delay and so on, but seldom complains the commodity price, thus, reduces the customer the time cost is very necessary.

What, how to reduce the time cost of consumers? We can draw another picture of consumer behavior that describes the consumer's consumption process: order the consumers from the idea of buying to the end of the purchase activity, and then calculate the time cost of each step. At this point we will find that many of the steps in the entire flowchart are wasteful, even redundant, and consumers are consciously or unconsciously rejecting them. These redundant or unimportant link consumes the customer a lot of time cost, if can optimize these links, raise the speed, even cut off unnecessary link, can create more value for the customer.

When the process cannot be further optimized, it can subtly change the consumer's understanding of time in the process of consumption, and compress time in disguise. such as in the process of consumption waiting for them to spend time or attract attention to the by-products, services, etc., in disguise to reduce consumer spending time cost. For example, when waiting for the waiting room to play TV programs, ordering meals to provide music or magazines. The author once for a hospital to do the overall planning on the introduction of the "elimination of patients upset waiting time" this concept, the main contents include setting up a more comfortable waiting environment for the patients waiting, editing a DM magazine which is not periodical published to introduce our hospital as the main, conveying health information and leisure information, so that patients could easily read in the comfortable environment. , the waiting is unknowingly completed during the process of obtaining information of interest. Because of the particularity of the hospital, always give the patient a feeling of tension and depression, I suggest that its import play soothing music and a beautiful natural environment as the theme of TV programs, to resolve the patient waiting for anxiety and insecurity, has been beyond the imagination of praise.

2. Physical cost

In today's society, with the improvement of living standards, the network developed and convenient traffic, so that we become very lazy, at this time, physical costs began to appear in the cost of consumption. For example, we want to eat some kind of food, but we have to go downstairs, take 30 minutes to reach the sales place, in the queue for more than 10 minutes, the other is that we want to eat some kind of food, as long as a phone, 15 minutes to have a person door-to-door. Which way do you think is more stimulating to our consumption? When we have the desire to buy, often the passion to buy will be consumed by the process of purchase, may end up because of the loss of interest in the purchase of the purchase, this situation in the emotional commodity consumption is particularly prominent. Therefore, we reduce or remove the physical cost of customers, can greatly improve the possibility of sales. According to the different industries, reducing the physical cost of customers have a lot of ways, such as door-to-door, in the network to open virtual shops, one-stop shopping.

3. Risk Cost

There is a saying in China: "From Nanjing to Beijing, buyers do not sell fine," refers to customers will never take advantage of the business of shopping, the relevant agencies have done surveys, the customer's purchase risk is a business sales risk twice times. Therefore, consumers other when shopping, cautious, lest make wrong purchase decision. In the process of the consumers ' thinking game and choice, the desire to buy is decreasing, and finally may give up the purchase, which is more obvious in the relatively expensive rational commodity consumption.

Now some smart businesses have launched a very long product warranty or a variety of after-sales service, greatly reducing the risk of consumers in mind, so the possible increase in the cost is far lower than consumers because of the confidence of the purchase of sales profits. can also find consumer trust for the product endorsement, such as the authority of XX institutions, XX Experts recommended, received the honor, other consumer feedback information. In short, according to the characteristics of their own industry, consumers buy the various concerns and risk elimination, will be able to effectively improve sales.

4. Select cost

Every one of us, in addition to being happy, has a little bit of disappointed unease, which is explained in psychology as the anxiety of losing the chance to choose-to be married, to be able to love one's heart. Temper without a certain candidate for good, income and no one chasing their own more people and so on. This is not to say that our feelings are not professional, but rather an instinctive psychological reaction to the loss of other options when decisions are made. This is also true in the consumer spending process, when choosing to buy a product, it is always in the mind to compare instinctively with 2--4 alternative goods, at this time a small thought fluctuation can change the consumer's consumption decision, if we can make its thought produce a little positive tendency, the transaction can be achieved.

But many businesses take the measure is not to pull a consumer, but to push the consumer, the end of their bridges-denying other alternative goods, set up a variety of switching consumption barriers, in an attempt to make consumers can only choose their own goods, but the result may backfire, Because consumers once lost the choice will instinctively feel that there is a greater consumption risk, or even antagonistic to the heart, therefore, we must change plugging into sparse.

Motorola has launched a high-end mobile phone, consumers can be free trial for one months, one months without reason, unconditional return, the result of sales unusually hot, some people worry that consumers will try to return the phone after a while the phenomenon of almost nothing happened. Why is there such a result? Because consumers before buying is only a kind of anxiety to lose other options, not loose, once purchased a product, if there are no other problems, with the habit, few people are willing to time-consuming, laborious to return.

The above mentioned 4 ways to reduce customer purchase costs, do any of these can offset the purchase of the money for customers that point, if the above 4 points to do in place, even if the increase in sales prices, goods will have a good market. Of course, if there is a battle-scarred, only "Lee" is the customer of the map, for these values of the transfer indifferent, we also need to raise another factor-the value of goods.

Increase the value of goods

The value of a commodity is not entirely determined by its physical properties, more by the consumer's heart factor, regardless of the actual value of this commodity is how much, the key to see the consumer's mind on the value of this commodity.

When the physical property value of a commodity cannot be promoted, we can increase the customer's psychological value to the commodity, make the trading scale tilt to the commodity value side, and thus increase the turnover rate. There are many ways to improve the value of goods in mind, different industries need to explore according to the characteristics of the industry and their own situation, the following 6 basic methods can be used in the market.

1. Shaping Product and brand culture

Culture is a commodity, the soul of a brand, can create a psychological value for goods more than a few times the physical value, or even dozens of times times the miracle. Starbucks, Harley, Chanel and other brands are using the brand and culture and other perceptual value factors to earn more than the other brands several times the premium.

A bottle of mineral water sold to dozens of yuan, you will frown? Because, even Wahaha such a famous brand mineral water is only 1.5 yuan a bottle, import mineral water is only 3--5 yuan. But Evian mineral water is the exception, the main reason is its rich and attractive brand culture: Evian Mineral water from the alpine melting snow and mountain rain perennial accumulation of the Alps hinterland, after 15 years of natural filtration and the layer of glacial sand layer of mineralization and natural purification, formed according to the cloud of water ... One day in 1789, a French nobleman with kidney stones took a walk to a nearby town, accidentally drank the local spring water, felt sweet and smooth taste, so take some of the local waters insist drinking, after a while he was surprised to find his kidney stone miraculously disappeared. This anecdote quickly spread, experts have done a special analysis and research and proved the efficacy of cloud water, since then, a large number of tourists flocked to the Evian town, personally experience the magic of cloud water, doctors will be included in the prescription. Napoleon III and the Queen of the Evian Town of Mineral Water is a special, 1864 officially named the Land for Evian town, according to the cloud of mineral water also went to the world. How about that? After listening to this story to drink according to cloud mineral water, is not it feel a little different?

Second, the promotion of commodity grade

Many products, in addition to the physical properties function, there are other features, especially luxury or expensive goods, such as cars, jewelry, watches and so on, they are not only the means of transport, decorations or timekeeping tools so simple, more expressive, and even publicize the personality of the owner of the role of identity and status, for such goods, Emphasis on taste is very important. There are many ways to improve your grade, but the key is to combine the characteristics of industry and commodity to refine, the following 3 aspects can be used for reference: ⑴, improve the quality of goods-the quality of good goods is one of the basic elements to support its grade, I believe that even the shape of a luxurious and beautiful, but did not suck on a few mouth on the smell of pipe, It's hard to relate to high grade. ⑵, strengthen the appearance is also shape the key factors of commodity taste, not only to shape beautiful, but also exquisite workmanship, which is to pay attention to the taste of consumers most concerned about. ⑶, grade can be linked with the personality, because, we do not want to be buckled on the hat blindly, so, with personalized goods can often be the taste, fashion sensitive consumer groups of all ages.

3, for the goods into the feelings

When a commodity has a sentimental factor, you can break the shackles of the price, so that emotional factors to add points for commodities, for example, a product with emotional connotations of the name, behind a moving story.

Diamond's chemical composition is carbon, Diamond's first name is "stone carbon", but such a name can not be associated with his rare and noble, and no girl will be willing to hang a "carbon" out. Later, after the commercialization of this ore, a very nice name--Diamond, but the name is too masculine and hard, and the wearer is more women, and to reflect the soft and noble, so, later as jewelry jewelry diamond is called diamond, the sensual beauty of the name for women love and accept. Businessmen in the perceptual, such as "Diamond Heng Long, a perpetual spread" and other classic advertising language began to appear.

A "acacia grass" made by the bookmark, the cost is only a few cents, but in a sad beautiful story foil can sell to more than 10 yuan, consumers are willing to buy this physical property value is not high bookmark, behind the reason is that it has feelings and life.

Iv. skillfully set up a terminal

For the commodity into the culture, taste and emotional connotations, the next thing to be expressed and delivered to consumers, and the first step is to pass the mold of the terminal environment. A commodity placed in different places, its value will be different, for example, the same clothes, at the stall to sell 50 yuan, placed in the boutique can sell to 500 yuan. Selling the same dress in two different places, why is the price gap as high as 10 times times? Because the former is to reflect the relative value of goods at the expense of profits, the latter is to improve the psychological value of goods through the environment.

The same coffee, but can make a different taste and feelings, you believe it? Romantic French Riviera coffee, relaxed and stylish Starbucks coffee, quiet and soft home afternoon tea coffee ... The same material, but can bubble out a variety of tastes and feelings, it is entirely because of environmental factors affected. If interested, can do a life test: In the quiet afternoon, leaning on the couch, flip a magazine, taste a cup of coffee, remember this taste, this feeling, and then change a place, in the lively cabaret to a cup of the same coffee, feel, and at home leisurely drink the cup of coffee is different?

Appropriate terminal layout can effectively improve the value of goods, therefore, should be based on the characteristics of their own products to design terminals, but should not simply the design of the terminal is very gorgeous, thinking that this can improve the value of goods, in fact, this may cause the environment and merchandise disjointed situation, to contrast the low-grade goods. Only the clever combination of goods and environment, can play the role of making the environment as a commodity addition.

V. to speak of value

According to the product characteristics, sales skills for sales staff training is very important, because, advertising, channels, etc. do a good job, can only be regarded as a ball game in the wonderful biography, finishing a foot to rely on the end of sales staff to complete, need to sell the value of goods to consumers, so, Attaching importance to the training of sales staff is also an important means to increase commodity value.

Do not go to the customer and how much money is worth, once caught in the price of entanglement, the result will be difficult to sell a good price, even difficult to reach a deal. At this time should guide the customer's thinking, together to explore the value of goods, so that ignore the price factors, such as jewelry and other perceptual goods, price factor is only second, the buyer more value is commodity values. For example, a wife complained to the salesman that a necklace was too expensive, and if the salesperson said, "Ma ' am, 6,000 bucks is already cheap, you can't get a cheap necklace at any jewelry store ..." The salesman sells the goods at the price. In fact, at this time the consumer's heart is contradictory, she would like to pay less to buy the cost, and hope that the necklace is very valuable, sales staff suddenly denied the value of the necklace, told you this is the cheapest jewelry, so the chances of a deal will naturally be very low.

If the salesperson is in another way: "Madam, this necklace is perfect for you, with your body looks less than 10,000 yuan, and, this necklace is very similar to your temperament, looks so noble, beautiful", so the chances of a deal will be greatly improved, because the salesman said this necklace with the wife after the value of , and this value is what the wife most care about, when it recognized the value of the psychological purchase cost naturally fell.

Vi. Ingenious Discounts

For most commodities, it is unavoidable to be plagued by discounts, if discounted, not only earn a lot of profits, but also damage the value of goods and brands and image, do not discount and difficult to make consumers a kind of earned the heart balance. In terms of value marketing, discounting violates the principle of value, at this time, in order not to damage the value of goods and profits, we can take a "lost car bao Shuai" approach: to ensure that the main commodity does not reduce prices, but some small gifts, such as a brand computer, its price in the industry to maintain a strong discount, but presented a U disk, mouse, Data lines, speakers, DVD burning disk, computer enclosures, such as 10 of gifts, consumers at first glance feel that the combination of cheaper than other computers, strong prices also increased consumer recognition of the value of the computer. In fact, the total value of these gifts is far lower than the computer high sales price, so that is to maintain the image of the brand, and earn enough profits.

Suppose a man buys a Mercedes, the salesman told the customer that he could hit 50 percent, and that the customer would turn around, because the Mercedes-Benz customer was not buying a vehicle, but to buy a status, status and value, you told him to be 50 percent, which means the car could not represent status. However, if you tell the customer, buy Mercedes-Benz can send him a Swiss watch, a brand-name lighters and 1 million yuan car insurance, customers will gladly accept, because this is to meet the customers want to deal with a little cheap human characteristics, and maintain the value of goods. Therefore, the need for discounts, should be given gifts, increase service, extend product warranty, door-to-door, combined sales and other means for the balance of the transaction to increase the value of chips, rather than give up the price, because you give up the price at the same time, the customer's mind on the value of the commodity is also decreasing

The above is only a framework for the operation of the model, the specific operation should be combined with the industry and its own characteristics, in short, from now on, remember the value, forget the price, then the price of your torment will be far away.

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