New at CVI!
“Positioning and Pricing Product Lines in Recessionary Times.”
Not surprisingly these days, at Customer Value, Inc, we are increasingly asked about how pricing and product positioning strategies need to be modified in a troubled economy.
In recessionary times, customers pay more attention to price and less attention to performance. This tends to help economy products and hurt premium products. Bradley Gale and Don Swire have written a short article showing how you can use the value map framework to help your company address the issue of positioning and pricing your products along the spectrum from economy to premium products when the amount that people are willing to pay for better performance changes
Download: http://cval.com/pdfs/Positioning_and_Pricing_Products_in_Recession.pdf
The article addresses:
1. How to assess where your product lines are positioned in the performance for price framework
2. The need to shift, especially in recessionary times, from cost-plus pricing toward value-based pricing. Value-based pricing will reflect more accurately what your products are worth and will sell for relative to competing products. It helps you avoid miss pricing your products when the cost of producing them is not aligned with what they are worth relative to competing products.
The article concludes with some links to learn more about value analysis for positioning and pricing your product lines in troubled economic times.
Now available : Release 7 of CVI’s Marketing War Room Software
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The Marketing War Room helps you develop and implement marketing strategies that are based on increasing the value of your offering to your customers. Release 7 introduces powerful new techniques that help you improve your success rate for product introduction. You can evaluate alernative product concepts using the new "Anchoring Worksheet" feature. This lets you assemble a table of comparative specifications for both the products now on the market and for your own concepts. The Marketing War Room combines these technical measurements into an overall index of performance, and arrays your new product concepts on a value map. This proven marketing-strategy tool shows the price-performance tradeoffs as they will be be seen by your customers when your product is available. This rigorous analysis helps guarantee that the product concept you choose, in combination with the appropriate price, will be a winner in the market.
What else can your marketing team do with the new Marketing War Room?
- Understand the true strengths and weaknesses of your product offer, and identify opportunities that can make your product more competitive.
- Look at your product head-to-head against each of your toughest competitors to think through your selling strategy
- Set your prices based on what your product is truly worth
- Hone your marketing message
- Align your management team around a plan to serve customers better.
Release 7 of the Marketing War Room has new features that add to the ease of use and power of the software, helping you jumpstart your programs for value-based pricing and customer-value improvement. Download brochure
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Value-Based Pricing & Marketing
The idea behind value-based pricing is compelling: make sure that your prices are in line with the benefits you deliver to customers. It's the only safe way to steer a course between the shoals of overpricing (alienating customers) and the rocks of underpricing (and leaving money on the table). But value-based pricing can be done only if you can calculate what your product, with its unique pattern of strengths and weaknesses, is really worth to the customer. The need for such calculations has spawned a number of different approaches to figuring out a product's worth. Among these approaches are attribute importance-performance analysis, economic value analysis, and conjoint analysis.
CVI's value-based-pricing methodology, described in our white paper Value-Based Marketing and Pricing, synthesizes these approaches. it allows you to draw on the best of all of the tools depending on what's most appropriate and what data you have readily available.