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the business blog of ADVB Strategic Minds
Most of us have been led to believe that high pricing enhances brand image and conversely low pricing affects brand image. This is the reason why marketers fear to be the lowest priced brand in a category or do frequent price-led communication. Is this fear well founded?
What a brand sells isn’t price; but value. Consumers evaluate a brand by the value it offers and not by the price at which it sells. The purpose of any brand, therefore, is to create unique value that consumers would be willing to pay for. A brand that can offer this value at the least possible price would be the most preferred brand.
Consumers expect more value from a high priced brand and less from a low priced brand. This is how price and value are co-related. A brand that helps consumers rationalize, articulate and experience this value would be a “value for money” brand. Price by itself is not the value. A brand that does not offer any value would be perceived to be expensive, even if it isn’t. Sales of such brands would not increase even when there is a price drop.
Read here the entire article.
Pratap Singh, Member of ADVBOUCLE Mktg Consultants Network
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