Integrate Risk Lowering Strategies
People, on average, don't want the lowest price. You can verify this fact by noticing that not everyone drives a Ford Focus or a Hyundai. Did you know that in a given supermarket, Coke and Pepsi combined outsell the store brand cola by a margin of about 12 to 1? And unlike cars, there just isn't that much difference between a Coke and a Big K Cola. No, people don't want low price - they want low risk. Let's say you take a road trip and you want to stop to eat lunch. You come to an exit in the middle of nowhere with a Bob's Burger Barn on the right side and a McDonald's on the left. Where do you go? If you're like most people, you go left to the McDonald's. Why? Because even if you don't like McDonald's, at least you know what to expect. It's very low risk.
What about store brand soft drinks? They might be really good, they might be terrible. It doesn't matter - it's only 85 cents more to get the national brand, and you know you like the national brand. Besides, what if your friends laugh at you? Come on, what's High-Top lemon-lime soda? Where's the Sprite? Sprite! What a bargain at only 85 cents more. Here's a little secret - You're more likely to be the Bob's Burger Barn of your industry than the McDonald's. But, don't take that as an insult, because you might actually be much better - i.e. have a better Inside Reality - than the McDonald's in your industry.
But the problem is, the customer doesn't know. So it's a high-risk situation for him to try you out. But, maybe you feel you're the recognized leader in your industry - that you're the McDonald's. If so - do you have all the business you want, or is there just more to be had? There's always someone out there who thinks one of your competitors is better than you are. But what's really interesting is that most businesses, just like Bob's Burger Barn, figure that by just sticking their sign up on the side of the road with combo meal specials on the marquis, so to speak, that they ought to get their fair share of the business. It doesn't happen that way.
More tomorrow.
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Lower the Risk When Marketing - Adult B2B Marketing Tip
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