Monday, January 12, 2009

Secrets to branding - 20% off.

I just spent 90% of my marketing budget telling you that our relationship is built on good customer service and customized solutions, rather than the bargain basement pricing of my competitors. Then I spent 10% of my budget to advertise a discounted price. Did I just waste 90% of my budget?

Or how about...

If I ask my customer to pay a premium for a best-in-class product (lets say $100), and then discount the same product a month later and sell it to a customer who would only pay $80 - which customer do I really want in the long run?

Which one feels I have more value?

Which one would be easier to convince in the future that my time is worth $100? or even $150?

Which one is less likely to jump ship for the next $80 deal?

Regardless of our economic time, a great brand competes by building its price to reflect the promise, story and experience it will provide. Every other brand competes by offering its reputation to the lowest bidder at a discounted price.

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