Post by account_disabled on Dec 6, 2023 4:19:44 GMT
Building a brand image Pricing is also used to position a brand in the market. Apple, for example, successfully uses this mechanism by selling both laptops and smartphones at a higher price than its B2B Email List competitors. As a result, the U.S.-based technology giant is perceived as a premium brand, which is effective in reaching more affluent customers. Does that translate into business results? It does.
In the fourth quarter of 2022, Apple’s share of the global smartphone sales market was as high as 24.1%. As you already know what goals you can achieve by appropriately selecting a pricing policy for your products or services, let’s now look at the types of pricing strategies. There are several of them. However, we will focus on three basic ones, namely a low pricing strategy, a neutral pricing strategy, and a high pricing strategy. Low pricing strategy This strategy involves offering products or services at lower prices than the competition. The premise is simple: if I offer customers the same good product as my competitors, but at a lower price, then customers will come to me and buy from me. This is often a valid assumption. Is it always? No. Let’s look at when to use it. When to use a low pricing strategy? When you want to enter the market quickly and dominate your competitors. Low prices attract consumers,
especially when it comes to fast-moving goods or when the market is saturated with similar products or services. When not to use a low pricing strategy? Low prices work better for selling products than services – the service has to be done, and that takes time. What’s more, it’s not a good strategy if you want to reach customers with deep pockets and build a premium brand image – that’s where value matters. What’s more, setting low prices is a mistake if you do it solely out of fear of the customer’s reaction to a higher price. Beginning entrepreneurs often fall into this trap. One example is a former Google and Twitter employee, Larry Gadea, who now runs Envoy, a startup that offers a platform to help other companies register visitors to their offices.
In the fourth quarter of 2022, Apple’s share of the global smartphone sales market was as high as 24.1%. As you already know what goals you can achieve by appropriately selecting a pricing policy for your products or services, let’s now look at the types of pricing strategies. There are several of them. However, we will focus on three basic ones, namely a low pricing strategy, a neutral pricing strategy, and a high pricing strategy. Low pricing strategy This strategy involves offering products or services at lower prices than the competition. The premise is simple: if I offer customers the same good product as my competitors, but at a lower price, then customers will come to me and buy from me. This is often a valid assumption. Is it always? No. Let’s look at when to use it. When to use a low pricing strategy? When you want to enter the market quickly and dominate your competitors. Low prices attract consumers,
especially when it comes to fast-moving goods or when the market is saturated with similar products or services. When not to use a low pricing strategy? Low prices work better for selling products than services – the service has to be done, and that takes time. What’s more, it’s not a good strategy if you want to reach customers with deep pockets and build a premium brand image – that’s where value matters. What’s more, setting low prices is a mistake if you do it solely out of fear of the customer’s reaction to a higher price. Beginning entrepreneurs often fall into this trap. One example is a former Google and Twitter employee, Larry Gadea, who now runs Envoy, a startup that offers a platform to help other companies register visitors to their offices.