Marketing

How loyal are your loyal customers?

Marketers on paper can have loyal customers, but in reality price and promotion can win them over.

Source: marketoonist, Brand Loyalty

Instead of competing on price and promotion, outlining the product value and educating the consumer on the merit of the product can keep a customer loyal. The 4 P’s (Product, Price, Place, Promotion) are in need of reassessment.  There have been several articles in business and marketing blogs discussing different takes on the 4 P’s for the 21st century (e.g. Marketers Need 4 New P’s in the Modern Age & Rethinking the 4 Ps).

Ways a business can differentiate themselves on value:

Transparent supply chain – i.e. Whole Foods Market commits to full Genetically Modified Organism (GMO) transparency.

Ethical sourcing –Starbucks promotes its ethical sourcing of coffee.

Employee empowermentCostco pays and empowers their employees leading to a superior customer service experience and greater sales.

SustainabilityH&M clothing recycling program.

Community engagementDiscussion boards, customer reviews, different ways to empower customers, building customer communities.

EducationUnilever is promoting health & hygiene with their handwashing campaign.  Free seminars i.e. wine tasting for a wine store, running clinics for a shoe store, webinars on product education or a hot industry topic, etc.

Based on strong and ethical value propositions companies can overcome the price and promotion battle.

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