Source: Busiunion | 2016-12-13
Price and quality is two big variables of brand positioning.
Price reflects the value. But in marketing activities, price fluctuates by the value. In the market, neither competitors' positioning nor customers' perceive is unchangeable, and any discount or new style action by competitors would bring price fluctuation.
As a very important dynamic variable in marketing system, the change of price would bring large risk to the market.
◇ The risk of losing customers
◇ The risk of irritating competitors
◇ Shorten the product life cycle
◇ Reduce the profit
◇ Will the discount take larger market share?
◇ How about the price sensitivity of customers?
In China market, the price index is usually more important than other variables in marketing system. We could find Chinese customers are very sensitive to price. The example of mobile phone market several years ago could explain it. Years of monopolization by foreign brands could not resist the price strike by national brands and the market came into a new structure. But what will it be in the future?