Marketing of services,viral ads 2016 olympics,funny promotional video ideas advertising,market development strategy for banks - 2016 Feature

Yet for many B2B marketers, the pricing strategy in their marketing plan is challenging to write; many aren’t even involved in creating their pricing strategy.
There are many factors to consider when developing your pricing strategy, both short- and long-term.
Note: You can access guided pricing strategy templates and step-by-step instructions for writing the pricing strategy section of your marketing plan in our marketing planning and management app.
When you offer a truly unique product or service with little direct competition, it can be challenging to establish your price. When your price, value proposition and positioning are aligned, you’re in the best situation to maximize revenue and profits. Company C regularly evaluates their competitors’ prices to make sure they’re delivering on their promise. However, if there isn’t a strong market for prestige, this strategy may be the best one for the company long-term. If Company B charges a premium price for an average product, they’ll have a very difficult time generating interest in their it. Yet Company B may be able to implement a small price increase to raise revenue and profits; it depends how much more its customers are willing to spend. By analyzing price sensitivity and testing different prices, they can evaluate the strength and potential of this new strategy. If Company C’s prices rise in relation to those of their competitors, sales will plummet – their market is shopping on price, not factors like product leadership or customer intimacy. If Company C cannot maintain its operational efficiency and cost leadership, it will need to develop new products or markets for its existing product. Their pricing is typically 15% above the competition – they’re the most expensive product in their class. Their demand curve is relatively inelastic, meaning that their market isn’t that sensitive to price.
Much of that results from the carefully selected positioning and branding over the past five years. When they’re behind their sales targets, individual reps are given the green light to discount if needed to meet their sales quotas.
Management doesn’t want to get in a price war, but is willing to ensure that they hit their short-term numbers. Management knows that they could spend more in R&D to differentiate their offering and have greater pricing power, but they haven’t yet committed the budget to do so. The quality of their offering suffers, and they end up providing mediocre service for both markets. By lowering the price of their “prestige” brand to access a new market, Company C has increased its revenue, while reducing its profit margin and damaging its brand. Create a free account in our marketing planning and management web app for step-by-step guidance. It’s best to define your positioning, create your brand strategy, and identify your distribution channels before you develop your pricing strategy in the marketing plan. For example, if your method for delivering value is product leadership, you shouldn’t discount heavily or compete on price; you should also minimize pricing conflicts with any channel partners.
Your price sends a strong message to your market – it needs to be consistent with the value you’re delivering.
If your value proposition is operational efficiency, then your price needs to be extremely competitive.


If your value proposition is product leadership or customer intimacy, a low price sends the wrong message. Estimate how sensitive your customers are to fluctuations – it will help you determine the right price and volume combination. Once you’ve finalized your pricing strategy in the marketing plan, it’s time to design your marketing campaigns. The Marketing MO planning app is your behind-the-scenes Chief Marketing Officer, a comprehensive resource that will improve your overall business, whether it’s a consulting practice, start up, or mid-size company.
You sell a product through a geographical network of dealers who sell to end-users in their areas. Your dealers are essentially your customers, and you have a strong program to train and support them with marketing campaigns and materials. You sell a product to a company who bundles it with services or other products and resells it. A VAR may work with an end-user to determine the right products and configurations, and then implement a system that includes your product. If users need personalized service, you can utilize a local dealer network or reseller program to provide that service. If your users prefer to buy online, you can create an e-commerce website and fulfillment system and sell direct; you can also sell to another online retailer or distributor that can offer your product on their own sites. You can build your own specialized sales team to prospect and close deals directly with customers.
Wholesalers, resellers, retailers, consultants and agents already have resources and relationships to quickly bring your product to market. You’ve used one or more distribution channels to grow your revenue and market share more quickly than you would have otherwise. If you reach your end-user through wholesalers, VARs or other channel partners, you’ve created many successful marketing programs to drive revenue through your channel and you’re committed to their success.
You may not have as many channel partners as you’d like, but your current system is working moderately well. You devote resources to the program, but you wonder whether you’d be better off building an alternative distribution method — one that could help you grow more aggressively than you are growing now.
You probably aren’t hitting your revenue goals because your distribution strategy is in trouble. With your current system, you may not be effectively reaching your end-users; your prospects probably aren’t getting the information and service they need to buy your product.
If your end-users need a great deal of information and service, your company can deliver it directly through a sales force. If you need complete control over your product’s delivery and service, adding a channel probably isn’t right for you. If you want to grow beyond the direct model, look for companies that have relationships with your end-users. If you use multiple channels, carefully map out the price for each step in your channel and include a fair profit for each type of partner. Service your channel partners as you’d service your best customers and work with them to drive revenue.
Learn how to set up, manage and improve your distribution channels with this detailed how-to guide from the experts at Marketing MO. Their consultants come from top schools, and they work with Fortune 100 clients to implement complex, large-scale projects.


Their clients are buying the best expertise they can find, and they’re less sensitive to price because they care most about getting top talent. There’s a lot of competition and their product is only slightly better than the alternatives.
They regularly review the market, run promotions, and adjust prices to maintain their competitive position.
Their value proposition is operational excellence and they consistently deliver the same product at a better price. They hire more consultants, but since they’re charging less per hour, they can’t afford the same top-tier talent. By doing so, you’ll ensure that your pricing reflects your value and reinforces your brand.
If you’re perceived as a commodity, you must either change the market’s perception via a new positioning strategy, or compete on price and focus on innovating to keep costs low so you can still make a profit. You’ll be far more effective when considering discount promotions – you’ll know exactly how low you can go and still be profitable.
If your value proposition is operational efficiency, evaluate your competitors on a regular basis to ensure that you’re continually competitive.
When tackling any new marketing task, have confidence that we have your back – with the structure and detail you need to get things done right. Learn how to set up, manage and improve your distribution channels with this detailed how-to guidance in the Marketing MO planning and management app. Instead of using your sales team, you sell this line directly to end-users through your website and marketing campaigns. If you sell through these groups instead of (or in addition to) selling direct, treat the entire channel as a group of customers – and they are, since they’re buying your product and reselling it. It’s especially important to think about distribution when you’re going after a new customer segment, releasing a new product, or looking for ways to aggressively grow your business. If consultants, wholesalers or retailers already reach your customer base, they’re natural partners.
Then compare the price that the end-user will pay; if a customer can buy from one channel at a lower price than from another, your partners will rightfully have concerns. For example, provide them with marketing funds or materials to promote your products; run campaigns to generate leads and forward them to your partners.
When your channel is up and running, you can start launching marketing campaigns to channel partners and end-users. If they’re extremely sensitive, you may be better off at a much lower price with substantially greater volume.
Understand their needs and deliver strong marketing programs; you’ll maximize everyone’s revenue in the process.
Pricing conflict is common, and it can jeopardize your entire strategy, so do your best to map out the price at each step and develop the best solution possible.



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