The need for connecting product, price, and promotion
A lot of small businesses, and some large ones, lack alignment and focus in their overall marketing strategy. They do not connect product, price, and promotion strategies. In part, it’s likely because they see marketing as promotions alone. For that matter, promotions might not even be specific enough. A lot of businesses see advertising as marketing. Advertising is a small part of marketing. If businesses disregard all other marketing components but pay for advertising, they are likely wasting money.
Your customer has a problem, and your product is what will fix the problem and transform your customer. On top of that, your customer is represented by real people. Even in business to business environments. So you are fixing a person’s problem and helping them in their transformation. Understanding this, you need to package your product, price, and promotion strategy in a way that clearly delivers a solution to your customer’s problem. “Clearly” is a keyword. You don’t want your customer to have to think about this too much. After all, most problems are pretty easy to see, so why can’t the solution be easy to articulate?
Your customer has a problem and your product is the solution
The first step in coming up with an integrated strategy is to identify your customer. From there, identify their problem and what their life becomes if you can help solve their problem. Once you know the problem and the transformation, produce a product that solves the problem and transforms your customer. The problem and transformation will help determine what kind of pricing and promotion strategy you should use.
If the customer has a time problem (which is often the issue), you need to get a sense of what that time is worth and make sure your solution costs less than that time wasted. However, you don’t want to price it so low that they don’t believe you will solve the problem. It would be best if you also were careful that your pricing doesn’t subconsciously offend them by being too low. You also don’t want to be too high to allow them to start to rationalize what their time is worth. The particular problem and the solution will help define where your pricing should be.
For example, if I sell high-end fashion jewellery, my customer may want to feel more confident in themselves. Just because I can source a particular earring style for $5 a pair doesn’t mean I should sell it to the client for $15. I may still want to consider selling the earrings for $45 or more per pair. If I don’t, the customer won’t necessarily believe that the earrings will make them have more confidence because they know what they paid for the earrings.
What about promotion strategies?
Once you have a sense of the product (solution still) and the price, make sure your promotion strategies align. For instance, you likely never see coupons available to get 10% off expensive jewellery at a high-end goldsmith. It doesn’t fit the feeling. Similarly, the high-end goldsmith isn’t going to target everyone with Facebook ads blindly. They are likely targeting people that have similar interests and demographics to others who shop at their store. Think about some of your favourite brands and products and think about their promotion strategies. Do they align with the product and the price? If they are a well-known brand, I bet they do.
For help with connecting your product, price, and promotion strategies, contact us now.