The person who engages in marketing must first realize that there are two important double-edged swords in the marketing activities. If the dance is good, it is a weapon of success. If the dance is not good, it is the inevitable ending caused by the lack of academic skills.
1, the price is a double-edged sword
- For customers, price cuts directly increase customer value, but at the same time reduce the perceived spiritual value of customers;
For example, when Changhong madly cuts prices against opponents, many consumers are also rushing to buy, because the price reduction customers pay less, which is equivalent to an increase in value. But after a long time, Changhong naturally gives people a low-end brand image, which naturally reduces the spiritual value of customers, which makes it easy for opponents to create opportunities at high-end prices.
- For the company, price cuts directly reduce the company's profits and damage the company's interests, but at the same time prompt the company to reduce costs.
For example, when the price butcher Galanz used price leverage to create industry barriers, it really reduced the company's profits. However, Galanz has gained a larger market share, formed a huge production capacity, and has a stronger bargaining power and scale advantage, which in turn has promoted the company to reduce costs. In the end, it also forms a virtuous circle and creates industry competitiveness.
to sum up:
Sword of the enemy: a reasonable cost reduction and improved competitiveness;
The sword of injury: excessive cost reduction, affecting the value provided to the customer, thus offsetting the benefits brought by the price reduction to the customer.
Dance Sword Stunt: Increase the value of the customer's transfer and seek a reasonable profit. Pursue a better balance of price and value, profit and share.
2, advertising is a double-edged sword
- For the customer, the advertisement adds spiritual value, but pays a high price, and the person who pays for the benefit is a loss;
Consumers rarely think about where the cost of advertising is, and the profit of sales of products. In the face of advertising consumers, more consideration is the acquisition of spiritual values. So Coca-Cola advocates joy, and Pepsi-Cola advocates youthful vitality.
- For companies, advertising increases the cost of transmission while increasing prices and increasing sales. So many companies are keen to advertise.
For example, companies like Nike, Adidas, and Reebok invite a large number of sports stars to advertise their products every year, and the cost of advertising costs accounts for a large proportion. But the brand effect they create from advertising also brings higher profits.
However, excessive advertising is very harmful: the material and the spirit are seriously divorced, and the price and value are seriously deviated—the customer feels deceived, the company is unable to do so, and it becomes a smoky cloud.
Summary: The vast majority of this product has no brand without advertising, and good advertising can enhance consumers' perception of product quality. Adding a sense of value, but over-emphasizing that advertising does not focus on loyalty forging and word-of-mouth effects can only be a waste of effort.
Sword of Injured Enemy: Accurately integrate various media advertising strategies, and the value of word of mouth goes deep into the end;
Sword of Injury: Single-media advertising on a large scale, without any lethality;
Dance sword stunt: Differentiated advertising, word-of-mouth effect creates parallel, advertising is to let consumers find me, word of mouth is to let consumers fall in love with me.
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