Tag: positioning

11
Mar

Pricing Strategy: Keep It Simple

Posted by / Business Playbook, Mindful Marketing

Don’t overcomplicate pricing. When it comes to setting prices, many people get overwhelmed.

Pricing is based on many factors. Ask yourself: How are your services delivered? Hourly? One and done? In the service industry, packages are most popular. What products do you offer? How are you positioning your offer (mass appeal, high value, luxury, etc)?

Three pricing models for service businesses:

  • HOURLY: your client pays for your time
  • PROJECT: your client pays for a tangible deliverable such as a logo or a time-based deliverable such as consulting — this is the easiest price model
  • RETAINER: your client pays a recurring monthly amount for a specific number of hours whether used or not

Three general pricing strategies and the +/- for each:

COMPETITIVE: Charge standard industry rate, plus or minus. This is easiest to start, establish price aligned with competition and increase as your reputation grows.
+you know what the market will bear
-clients may be willing to pay more based on value and positioning

PENETRATION: price your product or service at your lowest agreeable rate to build a base of clients or consumers
+get clients quickly
-likely you will be undervalued

NEED: what you require for income (what do you want to earn, and divide it by hours for service or units sold for a product)
+you get what you need
-this doesn’t account for all time or all value

A HYBRID approach with these strategies is optimal. Determine a price for your offer or package, then discount to build your client base and get results, then reduce the discount to raise your price as demand grows. Alternatively, add value with bonuses. This keeps the price for your product or service at the highest level.

Consider who you serve and what the competitive arena of alternative solutions available to them. This will give you an indication what the market will bear and you can adjust for penetration and necessary income. It is important to price at the highest level because you can always discount or reduce, which is easier than to raise prices once established.

21
Aug

Positioning Your Product or Brand

Posted by / Business Playbook, General Interest, Mindful Marketing

Positioning is a facet of the marketing strategy that aims to give your product or brand a distinct perception — relative to competing brands — in the mind of the customer. An historic campaign for Avis reflects this: “Avis Is Only №2, We Try Harder.”

In developmental stages, determine the positioning you intend for your product or brand. Research and market feedback will help you discover if it is aligned with actual consumer attitudes. If not, then marketing messages can help close the gap or change perception.

Positioning is an art. Great positioning tells a compelling, attention grabbing story — a story that resonates with your audience. — Rebel Brown

The positioning process begins with identifying a market problem or opportunity, then developing a solution — often based on market research, segmentation and supporting data. Once positioning is determined, it will help align and guide marketing efforts and business objectives. The perfume I use is the indulgent scent for pleasure seekers. Thus, the tone and manner of messages, images, events and PR are created to consistently express this in all communication.

Again, positioning is the perception of your product or brand in the mind of the customer. Perception is reality. Aim to establish the highest and best use for your brand among your audience. And, be open to emerging alternate audiences, too. Here are some examples of common positioning strategies and how they might translate in the marketplace.

DEMOGRAPHICS Place your solution among those best served by gender, age, income, area, etc. If you try to be everything to everyone, you may not appeal to anyone.

PRICE Present your solution as an affordable option with a low price point or elevate your products or services among the competition with a high price point to create a perceived value (or reflect a real value).

DISTRIBUTION The environment and locations where you sell your product communicate quality and value propositions like convenience or specialty items. Select your sales channels to align with your desired positioning.

AFFINITY Find your tribe. Those who desire to align with your proposition. Position your solution to engage group loyalty of customers with a common, personal denominator.

Positioning is how you communicate benefits of your solution to your audience. Everything from where you make your product, how you make it, where you sell it, and for how much will convey subtle queues to the market. Align positioning elements with the overt messages employed in promotions, advertising, and public relations. Ultimately, positioning is how your market sees your solution among the alternatives.

8
Jun

Positioning Your Product or Brand

Posted by / General Interest, Mindful Marketing

Positioning is a facet of the marketing strategy that aims to give your product or brand a distinct perception—relative to competing brands—in the mind of the customer. An historic campaign for Avis reflects this: “Avis Is Only No. 2, We Try Harder.”

In developmental stages, determine the positioning you intend for your product or brand. Research and market feedback will help you discover if it is aligned with actual consumer attitudes. If not, then marketing messages can help close the gap or change perception.

Positioning is an art. Great positioning tells a compelling, attention grabbing story—a story that resonates with your audience.

—Rebel Brown

The positioning process begins with identifying a market problem or opportunity, then developing a solution—often based on market research, segmentation and supporting data. Once positioning is determined, it will help align and guide marketing efforts and business objectives. The perfume I use is the indulgent scent for pleasure seekers. Thus, the tone and manner of messages, images, events and PR are created to consistently express this in all communication.

Again, positioning is the perception of your product or brand in the mind of the customer. Perception is reality. Aim to establish the highest and best use for your brand among your audience. And, be open to emerging alternate audiences, too. Here are some examples of common positioning strategies and how they might translate in the marketplace.

 

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