The existence of price war is reasonable

As one of the 4Ps of marketing, price can also be used as a marketing strategy like promotion and channel. However, price is also a double-edged sword, which can be used to defend and stab the enemy, but it will also hurt yourself if it is not used properly. It is the so-called success and failure.

First of all, price war is a form of competitive development. For homogeneous products, this situation is most likely to occur when the brand power is weak. In addition, in the product marketing strategy, price is also the last firewall. When the channel, promotion and product strategy are used up, it will inevitably affect the price war in the end.

Secondly, in the product life cycle, with the development of products, the progress of channels, the rationality of consumers and the progress of science and technology, the products are bound to be replaced, and the old products are bound to meet the price reduction.

Finally, the price war is also a redistribution of channel interests and an upgrade of competition. It will force the upgrading of products and brands.

There is never a minimum price

However, in daily cases, we often see that "high prices always beat low prices". How can we correctly use the price strategy for agricultural materials and avoid falling into the price trap?

First of all, don't cut prices blindly. Price is not the whole of marketing. For consumers, the price is not the lowest, only lower. When consumers do not understand the real value of the product, any price is high.

Secondly, the price reduction can be reflected by promotion, or limited amount, limited time and other marketing means, such as second kill, group purchase, gift, bundle sales, etc. there is no need to directly reduce the price or sell at a bare price.

Again, "the wool comes out of the pig". Use the price reduction of ordinary products to drive the sales of high margin products. Classify the products, which are image or brand products, which are mainstream products and which are defensive products. Different types adopt different prices and marketing strategies to realize combined marketing and secondary attack ability.