Become a Marketer: The 4 Ps of Marketing Plus, Part 1
Price: Every marketer must have a pricing strategy. For Wal-Mart, this strategy is lowest price, always. For Nordstrom, it is never discount except for two and only two sales per year. For credit card companies it may be 0% interest for the first year (and then 25% thereafter, lol). What is your pricing strategy? I contend that just as product sourcing is not a good product, the lowest price is not a good pricing strategy. Having the lowest price is a race to the bottom and a zero sum game. Zero sum game is a fancy business writer phrase meaning there are no winners. (Now if I can somehow work "paradigm" into this article, I'll have a MBA-speak bonus blog!). Define your pricing strategy understanding that it is not how much that you sell that matters. It's how much you can keep. Profit is the life blood of your business. But profit must be earned. You must be solving problems and adding value. See "product" above. Instead of a discount strategy where you reduce the perceived value of your offerings, you could try a value-added strategy. A value-added strategy always gives a little more—whether that more is service, product, measurement, publicity, or other support you can offer to solve problems and relieve pain.
Check back on March 1 for part two of "The 4 Ps of Marketing Plus" and the final two critical elements of marketing.