Last Updated Jun 10, 2008 11:53 AM EDT
Harvard Business School marketing expert John Quelch serves up seven tips for marketers to consider on his Harvard Business blog. Here they are in brief; visit his post for more in-depth info.
- Understand the buying habits of your customers.
- Segment consumers around product usage behavior and price sensitivity.
- Marketers must reverse engineer products and packaging to hit key retail price points.
- Cut prices not across the board but only on items selected as your inflation-busters.
- Unbundle offerings to make it easy for price-sensitive customers to cherry-pick options and services.
- Manage your inventory on a last-in, first-out basis.
- Persuade customers to cut back their expenditures on other products, not on yours.
Decorative candles, for example, are highly sensitive to oil prices and the purchases are discretionary. The key here is to educate the consumer, apologize for the uncontrollable price increases, give price-sensitive consumers some promotional options, and reemphasize product benefits.How is your business dealing with cost and price increases? Do you have tales of particularly successful or failed approaches to making things right with your buyers?
(Gas price image by richardmasoner, CC 2.0)