PRICING SENSITIVITY

If you ask me…
Any marketer worth their salt will realise that allied to price sensitivity, what they should care about right now is brand building.

The importance of price sensitivity is obvious. Even as inflation starts to fall this won’t be universal across all markets, some businesses will have to protect their margins still further. If your brand is highly sensitive to price fluctuation sales volumes will suffer.

Protecting market share and profit margins is the preserve of strong brands. They achieve this by brand marketing which drives pricing power. Buyers are willing to pay premium prices for strong brands, therefore brand building becomes more and more important as businesses attempt to raise prices.

In many instances of B2B marketing, the focus is on driving leads. However, an important question might be how much are those leads willing to pay for our products and services? Increasing pricing is often a more profitable way to grow a business than increasing volume, buyers are much more likely to buy from brands that they know and trust.

It might be argued that reducing a brand’s exposure to price sensitivity could be the single most important effect of marketing. The second could be that when times are tough it’s marketing that determines how well you come out the other side.

Have you ever thought?
Is your lead generation strategy harming your potential profitability?

Until next time…
Phil Westwood
Creative Director, Greensquare