- February 8, 2016
- Posted by: Chowdhury Shahid Uz Zaman
- Category: Business strategies
Experience has shown me that many companies give discounts because they cannot justify a higher price. Therefore, in the absence of arguments, it is a good discount. The lack of differentiation is the source of many problems, including the pressure to lower prices.
Few strategies have both commercial impact and differentiation. A differentiated product or service is unique from the rest, providing alternative standards for the market. A differentiated brand is less vulnerable to attacks by price competition and will be a compelling reason for customers’ preference.
The solution to give less discounts
The solution to give less discounts: differentiate…
A few years ago I wrote an article referring to the most important question that every company should be: Why buy from you rather than your competition? When the answer is not clear, it is when the client begins to press for the price. If the customer does not perceive a difference, it will try to justify why they should pay more for what you offer. And if their arguments are not convincing, he will push for a discount. It is a simple survival mechanism that the client has to maintain, as you would any of us, the balance between what you perceive you are getting and what you are actually paying. Remember that the price is a relative perception of value.
Ask yourself the question, why a customer would prefer it over other options? This is the most important commercial question must be resolved to meet his monthly quota. Depending on the sector in which it is, there are dozens, hundreds, literally thousands of options. So why do you? Also visit http://optimaspecialty.com/ to know more like this.
The aim of the differentiation
The objective is to achieve differentiation customer preference. That is the last, so that regardless of any variable that might affect the purchasing decision of a prospectus, the differential is so strong and unique that makes the customer will stay with you.
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There are several aspects that benefit a differentiated brand…
Unifies the commercial script – When a customer is objecting to any of its vendors is very expensive, the answer will be clear and consistent across the sales force. It costs more because it has something that others do not have: it is differential.
Increasing perceived value – Transcends mere functional benefits and increases the perception of what the customer receives. (No one buys a Rolex for the time). It represents much more tangible, evident and visible. For the customer the differentiated product or service is worth more.
Minimizes price pressure – Set aside the product / service of others, putting in another category. Not comparable… the value representing the customer exceeds their cost-benefit ratio above the competition. Stops falling in price wars just because you do not represent the same thing.
Build brand loyalty – Unique for its customers to be doing it for thus irreplaceable. For its particular benefits, sees no direct replacement. The customer simply does not evaluate other options because it is not the same.
It makes the competition irrelevant – And competition is no longer the benchmark. No matter what the competition offers, you are on another level and the customer knows and is proud of it.
More effective communication – Striking, sticking out of the crowd and notes. It makes people turn to look, you leave the known. A great benefit in a world saturated with stimuli where few things are worth paying attention to.
Create your own tribe – It generates affinity and empathy. Membership of the principles expressed by the brand creates loyalty. They share and enjoy the same philosophy. People do not just buy because the product / service do its job, but because you like it, enjoy it and feel proud of him.
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It promotes word of mouth – Talk about things that surprise us. Many brands have not understood that the word of mouth is spontaneous and that the only way to stimulate it is still really surprising; not as many mistakenly they confuse it, and is still “by advertising” surprising, but in reality little background. The word of mouth is something that “money cannot buy.”
Part in fighting with consumers increasingly buying is justified if it really worth what they will buy and if it is the best option. They do not want to make mistakes. A differential is an argument where the consumer is said to himself: “This is different.”
That is the justification that companies are not giving and it’s a matter of survival, or at least a state of much healthier and sustainable results.