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    Marketing Myopia In Enterprise Pricing

    2010/10/27 13:24:00 162

    Marketing Pricing Enterprises

    October 27th, today, pricing has become the top priority for many enterprises, and some managers often worry about it. market Competition and constant price cuts.


    Nevertheless, many enterprises are still rather crude in dealing with pricing issues. enterprise Without professional pricing staff, the price of a product usually depends on a simple cost plus or a reference to the competitor's pricing.


    However, the problem of managers is that enterprises do not pay enough attention to the pricing problem. On the contrary, the problem of pricing is not that they do not pay enough attention to the price problem, but that they attach too much importance to price and neglect value. Many enterprises are pricing in production oriented rather than customer oriented.


    We should come to the "myopia" in the pricing process of enterprises.


    Is the logic of an enterprise or a customer's logic?


    Most enterprises use the logic of the enterprise rather than the logic of customers when they are pricing products.


    Some enterprises are plunged into price war without thinking. These enterprises tend to regard price as promotion. Sale The best way is that consumers will be more willing to buy as long as the price is low. In fact, in a product survey, the investigators were surprised to find that many consumers didn't care much about the price of the goods while they were buying goods, but rather other factors such as after-sales service.


    Because for customers, as long as the value of their needs can be obtained at a reasonable price is satisfied.


    This is the reason why luxury goods can get a high premium. The premium of luxury goods is acceptable to customers. These premium does not come from the cost of the product itself, but the added value that the product is recognized by the customer.


    The enterprises that won the customers' high praise and sustained development are not those with the lowest price, but those that have the value of excellent products. The responsibility of an enterprise lies in creating value rather than reducing it. Enterprises should attract customers through providing value to customers and constantly looking for development points that can create customer value.


    This is following the customer's logic, otherwise it is committing myopia.


    The password of customer logic


    In terms of product value composition, enterprises must consider two points in the process of product development and pricing, namely, the functionality and sensibility of products.


    If the price set up on the basis of value is limited to functionality, the breadth of product value will never expand. It can be seen that the emotional value (image value) is the real source of product value.


    If we do not grasp the emotional value of the product, we will not get the premium of the product, and we will inevitably fall into the price war.


    When considering the value of products perceived by customers, enterprises can constantly ask themselves such questions: "how to make customers have a higher perceived value for my products", "which value of my products can make customers pay higher prices", "how to maintain these values", and "how to make customers better perceive these values" and so on.


    When a business lays a good foundation for the value of these customers, it is time to choose the price that matches its value, that is, when it is priced. {page_break}
     


    Myopia caused by price war


    Of course, all pricing activities will inevitably exist in the market environment, we must consider competitors' price strategy, but enterprises can not take competitors' product prices as the vane of their own product pricing.


    Even if competition is fierce, we should not blindly reduce it, but strive to create unique product value. In the game of pricing, enterprises should not be willing to be recipients of games, but we must realize that making a price game maker is much more profitable than being a game acceptor. Some enterprises are often plagued by market competition and constantly reduce the price of products. This is often due to the fact that enterprises only focus on product prices rather than value.


    How to pay attention to value when pricing? When customers purchase, they will unconsciously produce such a perception process: "under such circumstances, how much money do I pay for this product at this moment?" this determines whether customers have a sense of value for products and services.


    Enterprises should investigate and observe this value for money sense, truly understand the psychology of consumers, so as to learn the highest priced value perceived by customers. To avoid losing part of the profits between the highest price of value for money and the product discount price, the enterprise will lose some unnecessary discount activities.


    "See through" barriers in pricing


    If we can eliminate myopia and consider problems from the perspective of customers, then many of the mental obstacles in pricing can be eliminated, such as "one thing with multiple prices".


    Many people, including business marketers, have some misunderstandings about the price of one thing. These people often think that the price of one thing is unfair to customers. In 1990s, some articles in the newspaper also strongly criticized the phenomenon of multivalence. It was considered that one price is not conducive to the economic accounting of enterprises, it can not correctly evaluate the economic benefits of enterprises, and also encourages unhealthy practices in society.


    This is not the case. The same product can have different values. This difference can come from different product distribution channels, sales time, sales location, etc.


    For customers, this difference stems from different perceived values. In the study of product pricing strategy based on customer perceived value analysis, Wei Zhong long and Guo Chen think that different customers have different views on the value of the same product and the price they are willing to pay for the product is different. Enterprises can subdivide the market according to the customer's cognitive value and formulate differential pricing strategies.


    The value of the same product is not fixed for a certain customer. The perceived value of the same product varies with the customer, and at the same time it changes with the change of purchase scenario.


    This is why roses on Valentine's day are five times to ten times more expensive than usual, or they will be in short supply. When the value changes, the price changes are not difficult to explain. It can be seen that under certain circumstances, the pricing method of one thing with multiple prices is reasonable.


    Profit in "balance"


    Customers are pursuing value, and enterprises are paying attention to price. Customers need a sense of value for money, and the pricing of enterprises is to find a balance between product price and value under the premise of creating value.


    Premium is what companies are willing to pursue, and price cuts and discounts are compelling. The best way to avoid such displeasure is to create value and set the price consistent with product value.

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