Motorola's iridium mobile phone, in that era when mobile phones could be used for war, was definitely a huge breakthrough. The volume of the mobile phone is greatly reduced, and the call quality is obviously improved, which basically solves the time delay problem. But Iridium eventually went bankrupt. Can a product that leads to the bankruptcy of a company be called a good product even if its quality has made great breakthroughs in all aspects?
But we will also find that consumers are often not all rational. There is a story about jewelry pricing. The business of a jewelry store was bad, and the boss finally made up his mind to leave the industry and decided to sell jewelry at half price. When he left the jewelry store, he left a note for the manager, telling her to adjust all the jewelry prices and multiply the total price by half of the sales.
When he returned to the store again, he was surprised to find that the jewelry had been sold almost. The manager told him that although she didn't understand why the price of unsalable jewelry had to increase, she was surprised at the amazing speed of commodity sales after the price increase. The boss asked inexplicably, "What price increase? My attention is that your price is halved. " The fact is that the manager misunderstood the boss and doubled the price of all the goods.
In real life, there are many examples about pricing. Lily and I often go to the supermarket, and sometimes we buy some preserved eggs or eggs. Usually Lilly buys the most expensive one without thinking. She can't compare brands, and she won't consider quality, packaging, etc. And will of course choose the most expensive one.
Some big supermarkets will choose consumables in life, such as toilet paper and washing powder, and set lower prices. Because they find that a large part of the consumers in supermarkets are housewives, they tend to compare the prices of goods in different supermarkets. They often compare common consumables such as toilet paper and washing powder. If they find that such products in one supermarket are cheaper than those in other supermarkets, they will take it for granted that all products in this supermarket are cheaper than those in other supermarkets. I have forgotten the technical terms of this phenomenon ~ ~ Remind me if some friends remember!
Therefore, pricing is a very important marketing tool for commodity sales. Usually, from the marketing point of view, pricing mainly has the following strategies:
A) Cost-based pricing: add a profit percentage to the cost.
B) Skimming pricing method: high-level pricing collects profits layer by layer.
C) Infiltration pricing method: occupy market share with low price.
D) Competitive pricing method: pricing is based on the intensity of competition.
E) Consumer psychological pricing method: pricing according to consumer psychological state.
Pricing must also be combined with business objectives and marketing methods. Typically, you have the following options:
A) sales orientation: the goal is to expand sales.
B) Profit orientation: the goal is to obtain or increase the profit of the enterprise.
C) Competition orientation: The goal of price decision is to gain competitive advantage.
Combined with marketing, there will be many specific pricing strategies, such as:
A) Discount pricing: cash discount, quantity discount, trading discount, seasonal discount, etc.
B) Psychological pricing: mantissa or integer pricing, brand pricing, customary pricing, solicitation pricing, etc.
C) Product portfolio pricing: consider the pricing strategy from the overall perspective according to the product portfolio.
D) price discrimination. . .
Psychological pricing is a very important theory. However, domestic enterprises do not use it very well. The main reason is that this pricing strategy must be based on complete research and decision-making through specific figures. Having said that, I would like to mention an economic reflection of the cultural differences between China and the West. It is easy for China people to see the phenomenon and describe it, for example, good things don't go out, and bad things spread thousands of miles. Westerners, on the other hand, will do specific research, and they must get specific figures. After their research, they found that if a person has a good thing, he will tell 3.3 people on average, and when something bad happens, he will tell 1 1. 1 person on average. Sensitivity to numbers reflects westerners' pursuit of details. They studied a lot of things, all of which reached a very subtle level.
When you go to a multinational supermarket or a foreign supermarket, you will find that the numbers marked with commodity prices are often 5, 8, 0 and so on. 4, 7, 1 and so on rarely appear. Because based on the study of consumers' consumption psychology, westerners find that consumers' responses to price figures are different, and the order of acceptance is 5, 8, 0, 3, 6, 9, 2, 4, 7, 1. Theoretically, it is considered that the numbers with arcs do not seem to stimulate consumers, while the numbers without arcs, such as 4,7, 1, are not so easily accepted by customers.
Pricing is a very important aspect. On this issue, I also made some analysis on the pricing strategy of Daoshun Archery Hall, which I often go to. Have the opportunity to write it as a case to share with you.