From all my years in research and consulting, I think I’ve learned a thing or two about marketing worth sharing. Enduring fundamentals, mostly yet often overlooked. So, this year, I’m sharing some for your consideration. I hope they’re helpful. This week’s thought: Price is the most important P.
With tariffs on imported goods and services, brands must realize their inherent customer-perceived brand value. Conversations reported in the business press describe situations where brands debate their ability to raise prices without lowering demand. Dynamic pricing is once again a consideration across brands aiming to implement what airlines and hotels implement. There is a raft of articles on what brand owners may or may not do to stay viable: raise prices, maintain prices, eat the...
A day does not go by without a brand reference to value. In an uncertain environment, brands are particularly laser-focused on delivering value. Brand leaders say offering value is their strategic priority. Brands do need customer-perceived value for enduring profitable growth. But three brand-self-inflicted problems prevent customers from perceiving and receiving brand value.
It is axiomatic that a successful brand should command a premium price in the marketplace. Customers willingly pay such premiums because the brand offers higher quality, more innovation, greater trustworthiness (and associated reduction in risk), or more personal relevance, among other things. While this is true and justifies investment in brand building, it misses an important strategic advantage of successful brand building.
McDonald’s recently announced that the $5 Meal Deal will be extended past its initial 4-week period. According to Bloomberg, McDonald’s hopes the $5 Meal Deal will “lure” in customers. This seems to be happening. McDonald’s believes that this $5 Meal Deal is an opening to “bolster its (McDonald’s) affordability plans through the rest of the year… including the potential to extend the current meal deal for an even longer period of time.” Offering a McDouble...
