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.
– Sustainability – H&M clothing recycling program.
– Community engagement – Discussion boards, customer reviews, different ways to empower customers, building customer communities.
– Education –Unilever 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.