Mar 30, 2022
It's true, pricing can have an instantaneous response. I often think of it as the nuclear bomb of marketing mix variables because you can change it today, impact the market immediately, and it's really hard to take it back.
Now, compare that to the other marketing mix variables. If you've taken a marketing class, you know the four P's. You know the other three besides price, or your product, your place, and your promotion.
Product is obviously, what are we building? The place is, what's the distribution channel look like? And then the promotion is, how are we marketing it? How are we talking about it in the marketplace?
We could change our marketing. We could change our product. We could change our distribution channel. And each one of those would have an impact on our revenue, on our sales. But it takes a long time for that impact to ripple through.
On the other hand, if I change price today, people will change their mind today. Some people will choose to buy, some people will choose not to buy, simply because of the price change. So price really does have the fastest impact, but it also is one of the most dangerous to use. If you're using price to gain share, you're probably just driving industry profits down.
So, although it's fast, be very careful how you use it.
We hope you enjoyed this memecast. If you have any questions or feedback, please email me mark@impactpricing.com.
Now, go make an impact.
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