Pricing: Meet or Beat?
- by charles.knapp
My home dishwasher started making some really interesting noises. It was time to shop. I heard radio advertisements from two retailers who promised to meet any competitor's price. Then, another retailer promised that their everyday prices beat their competitors. That got me to thinking about the power of pricing and promotions in the marketing mix (product, price, placement, promotions, and people).
What is more powerful to say in a competitive market: your company will meet a similar offer, or your company will beat the others? Will you sell more if you meet or if you beat?
I found that the retailer who promised to beat the others really had the best everyday pricing. I was close to making a purchase. Then, another retailer had an exclusive promotional sale for long-term customers. Their loyalty promotion beat the best everyday discounter. So, I got the quality and performance I wanted at a tremendous price.
So, I have two challenges for marketers. First, where you really have to compete on price as a dominant factor, give people strong reasons to do business with you. If you try to meet other's prices, make the leap to actually beat and not merely meet competitor prices. Second, upgrade your firm's capabilities where needed. Oracle offers a complete range of great CRM capabilities for loyalty management, marketing promotions, and pricing management that will help you to grow your business.
