Marketing Should Consider The Price Acceptable To The Market.

　　 Consider market Acceptable price

The enterprise must take into account the price that the customer is willing to pay for the product in the design of the product, and the customer always has to balance the performance and the price. High performance is often more expensive than low performance products. Are target customers willing to pay extra product performance?

Enterprises must analyze and judge the goals of enterprises, the sensitivity of customers to performance and price according to market opportunities, then work out the price ceiling for each target market, and design the products of enterprises in this price cap. The price of the product can be estimated by multiplying 2 or 3 times the cost of the material directly.

If the selling price is higher than the price acceptable to the market, the enterprise must modify the product design so that the price of the product is within the scope of the market. Sometimes enterprises can add new features to the product, so that the price of the product is close to the market price. The pricing decision of products will be constantly trimmed in the later stage of listing and extension, but in the product design, we should consider the price and product design that the market can bear on the cost of production and the time of delivery, rather than the passive adjustment in the middle and later stage of the listing.

In 2005, Yunnan Baiyao The group launched Baiyao toothpaste. It is understood that it is the route of high-end products, according to the different regions, the test price set at 22 yuan to 24 yuan per yuan, it is really a surprise. Then the actual retail price basically stabilized at 19.8 yuan / branch. There is no doubt that from the price point of view, it belongs to the most expensive products of the same kind. However, can consumers accept such a price?

According to the industry's general statement, a toothpaste with a weight of 120 grams, priced at more than 6 yuan, belongs to high-grade toothpaste, such as LG bamboo salt, Colgate, blacks and so on. The price of 2~6 yuan is medium toothpaste, 2 yuan below the low grade. Over the years, consumers have formed the mental positioning of this price.

Obviously, Baiyao toothpaste has positioned itself in the high-end market, that is to say, its target audience is basically locked in two groups: first, the high-end income group with gingival haemorrhagic disease (global brand network); two, it is not necessarily high in income, but at least it is a severe patient with gingival bleeding. In fact, second groups of people are more sensitive to price, and are often unlikely to buy toothpaste with such high price. The first group often tends to seek more treatment at this high price, rather than through toothpaste.

Although the efficacy of Yunnan Baiyao toothpaste is relatively distinct, but due to price barriers, it has seriously affected the market's attempts and further consumption. Under actual circumstances, the price is about 10 yuan. LG bamboo salt toothpaste The market performance far exceeded that of Yunnan Baiyao toothpaste priced at around 20 yuan.