Companies need a process to understand how their circumstance has changed due to Covid-19, just like when Darwin found that those animals who better than others adapt to a change in circumstances are more likely to survive and reproduce. Like Darwins' birds, your business's survival is based on your ability to understand what has changed and how to adapt accordingly.
The classic The Art of War by Sun Tzu (5th century BC) is, obviously, about military strategy. However, there are some important lessons about running a business that company executives can learn from the book. This article examines one of those learnings.
The second law of thermodynamics says that heat will transfer from a hotter object to a colder object until both reach the same temperature. A similar thing happens in every business, the innovation and uniqueness of hot products or services transfer to colder, not as interesting, products or services of the competition. But business has a choice and can keep "hot" forever.
Companies often do the mistake believing that Price can be considered separate among the 4 Ps of Marketing. This article explains how all 4 Ps of Marketing interact.
Your price will select the customers you get; a low price will attract those who are price-sensitive, a higher price those who want higher value and benefit. Ensure you align your business strategy and pricing strategy as customer behavior among those two groups is vastly different.
An estimated 95% of all companies use sub-par methods to price their products or service. They leave money on the table. There is no reason for this, as scientific methods exists that allow companies to identify and focus on the most desirable customers and earn higher sales at higher prices.
Setting the right price of a product or a service is a balancing act, not too low, not too high. This is because the price itself drives buyer expectation of quality and benefit. This article examines how pricing influence sales volume and customer satisfaction is often surprising ways.
