How do you compete with "free"?
(Scott) Thought provoking question of the day: How would you market your product if the competition was giving theirs away for free? How would you capture consumer attention? How would you convince your customers that your product was worth the investment?
Or, just for kicks, you can also flip the question on its head: How would you market your product if the competition was charging ten times more than your price point?
The point is... rather than simply respond with your own pricing manipulation, how do you ensure your product is truly focused on differentiation? To compete effectively you MUST understand the most compelling components of your product's differentiation strategy. Answer the above questions and you'll have set out down the right path.
Or, just for kicks, you can also flip the question on its head: How would you market your product if the competition was charging ten times more than your price point?
The point is... rather than simply respond with your own pricing manipulation, how do you ensure your product is truly focused on differentiation? To compete effectively you MUST understand the most compelling components of your product's differentiation strategy. Answer the above questions and you'll have set out down the right path.
posted by ROInnovation at 12:27 PM
1 Comments:
Bottled water is a good example. Or champagne. Or diamonds. Or designer handbags. In all instances you can get a much cheaper (or free) alternative.
Some people don't pay the price. But many do - because of the deep relationship they have with the product or brand that gives them such a strong sense satisfaction when they buy or consume it. It's all about delivering that real satisfaction.
With champagne and handbags it's in external recognition of status. Same with diamonds, although their deep symbolism for your relationship is not to be messed with, so it's an arguably more internal and therefore deper sense of satisfaction.
I think the challenge is for brands to make and keep a deep emotional connection with their consumers. This almost unconscious connection is what will get them buying, keep them buying, and in the end make them very very happy when they are actually consuming the product.
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