Category: Featured-Post-ConsultingMarketing-EN

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Featured-Post-ConsultingMarketing-EN Social Media Marketing (SMM)

Smart and Competitive Pricing in Social Commerce

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Smart and Competitive Pricing in Social Commerce

Competitive Pricing On Social Media

Social Media Commerce has become very popular lately, so the competition grows drastically by shorter periods of times. In one of our articles we discuss the Social Media Marketing strategies in more detail. Now, let’s review the pricing strategies that work well with this type of commerce. It’s tough to figure out what is the right price for your product, especially when you’re emotionally attached to it, but to work in numbers we will need some research.

What Is Competitive Pricing

This type of pricing strategy is market-oriented. To put it more simply, as accompany/brand you consider the prices of other companies on the market which have similar products as yours and via research you figure out the right number to choose. Or maybe it would be more correct to say-strategically correct price. It also depends on your communication and how you present your product to the target audience quality wise. The same principle goes for pricing of services.

Three Pricing Basics

In the pricing strategies, we have three basics:

  • Low Pricing-Serves setting prices lower than your competitors.
  • High Pricing -Serves setting prices higher than your competitors.
  • Matched Pricing-Serves setting prices almost similar to your competitors.

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Tricky Pricing Analysis

As companies, you might not have the luxury of changing your pricing too frequently just to analyze the results. Sales are quite difficult to play around with. Especially, considering the fact that you have a base of loyal customers which will definitely notice, when the prices pop up and down all too often. With price analysis you figure out the reaction of your audience to these changes via creating polls for example. Of course it will show on repetitive purchase statistics as well.

Wrap Up The Product

Now, as we see-customers don’t really love constantly changing prices. So, here comes the question-what do we do to figure out profitable pricing without losing the customers’ trust? You could try wrapping the same product in a different skin and selling it for a different price and see if a customer prefers the old or a new version of the product. Don’t forget, that selling quantities are just as important. You don’t want to have only a couple of items sold instead of a dozen. Losing the customer base simultaneously.

Over And Under Pricing

Brands tend to make huge mistakes by over and underpricing their products. This can lead to the sales collapsing into dust. We don’t really want that to happen. So, how do you know when you’re crossing the red lines of too much and too little?

Keep in mind, that depending on your brand’s voice and target audience, certain products can seem too unaffordable or too cheap to be true. There is something you can call the “Defeated Mindset” when it comes to underpricing.

The brand thinks that the customer will resort to cheaper options even if they offer a high-quality and well-marketed product. This is where underpricing happens and the product just seems too good to be true for the given price, which raises suspicions about quality and fails to sell.

Another mindset which happens to be due to lack of analysis, pushes the brand to think only about high profits. In this case the team just doesn’t take into account the general income of target audience.

They start to think-it will sell even if the product costs more than my customers’ salary of a whole quarter of the year. Obviously the customer might get very upset about the pricing and resort to mid-priced products that work for similar occasions.

Bidding And Sales

To stay competitive on the market, sometimes a brand has to offer their customers a chance to buy high-end product in their range for more mediocre pricing. If your brand wants to be affordable (not cheap) sales or biddings are a necessary, part of your pricing strategy. Amazon giant and E-Bay are great examples of how well bidding and seasonal sales work. Even when the sales say “UP TO 70%” it still sounds like Christmas for the customer.

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Featured-Post-ConsultingMarketing-EN General Web Agency (EN)

A Complete Guide to International Marketing Strategy

A Complete Guide to International Marketing Strategy

International marketing means to apply marketing principles to the product for international promotion.

Nowadays the distance is not an issue and you can promote your products worldwide. Due to enormous demand there are several reasons why businesses are attracted to the international market:

  • Increase of economic sales
  • Huge market share
  • Huge profits
  • Untapped international marketing
  • Elongated product life

International marketing has its own characteristics:

  1. International marketing has no boundaries and everything can be obtained easily
  2. There is an intense competition due to high demand
  3. There are many factors that you can’t control, like political or geographical and the only solution is to adapt to the environment

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Type of customers in international market

Before you decide to enter an international market, you need to do some research about your customers, since foreigners may have different buying habits and preferences.

First of all you need to find out what they prefer, create marketing strategy and then present your product.

Customers are not the only thing that you need to consider when entering international market. There are some challenges you will have to face, for example:

  1. Traffics

You need to consider the fact that taxes and duties imposed on guest companies may be different from the local ones and sometimes they can be really high so it would be challenging to make profits there.

2. Politics

When entering the market you need to consider political stability since it plays a huge role in international marketing and directly influences on the success.

3. Slow growth of development markets

Developed markets are currently facing slow growth but in several regions such as Asia, Africa and America, are facing the growth of development.

4. Growing competition

Since the market is huge, the amount of companies are big and it continues to grow rapidly, you need to focus on expertise to succeed.

5. Different exchange rates

Every country has its own economy and currency, so for trading purposes you need to exchange the rates.

6. Culture

Every country has its culture. It is an important factor to consider, since one thing that is acceptable for one nation does not mean it will be accepted worldwide. You need to consider each and every one of them individually and apply it to your business.

There are several ways you can overcome an international barriers:

  • Choose a market that has a low trade sanctions and develop new products
  • Choose value-added activities like after-sales, which is not subjected to tariffs
  • You can do export but do not do import , instead try to do your own manufacturing locally
  • Get government subsidies, which will add appeal and will justify increased prices
  • Try to do partnerships with other companies
  • Stay for short term, since you never know when political situation will change

Conclusion

When entering global market you need to consider several things. First of all, you need to follow their regulations. Then you have to do some research, identify what the locals are missing and find how your product can address those issues. Do not forget to consider their culture and language barrier. Be prepared for everything beforehand for this to be successful on the competitive international market.