Posts Tagged home based business

Red Hot Internet Marketing – Succumbing To The Temptation To Compete On Price?

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Red Hot Internet Marketing – Succumbing To The Temptation To Compete On Price?

Resist it, if this is your sole strategy. It’s true that prices may come down as competition grows fiercer for the consumers that still have money during this tough recession. However, if your sole reason to reduce prices is to get more customers, this strategy is doom to failure. For one, it’s not just a matter of people having less money to spend, it’s also a question of getting the best value for their money. If you don’t take the time to create a product strategy that embraces a holistic approach to marketing in bad times, you’ll end up doing what everyone else is doing – lowering prices. And, then whoever can withstand the loss of profit the most will end up winning more of the market share, but at a very dear price. That just simply isn’t a good strategy to build a business that can survive a recession and go on to generate long-term growth.

 

Remain Price Competitive

 

Don’t overlook the lowering of prices in your niche, however, don’t play the oneupmanship game that only leads to drastic cuts in your market. This type of strategy works short-term, but eventually it eats up too much profit and it trains your customers to hold on to their dollars until the next round of price cuts. If, however, you do offer some discounts and programs for loyal buyers, instead of just everyone who might drop by your online store, you train your customers to buy more and still get a good deal. So, if you really do want to compete on price, do so in a way that generates buying behavior, and not across the board for anyone that wants to freeload off your hard work.

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Create A Perception Of High Value

Another way to compete on price, but not offer lower prices, is to heighten the perception of value for your products. Your products may cost more, but they are also worth more, and therefore deserving of a higher price. The way to do this is to offer more to your customers than they expect to receive for the price. If they expect an overnight stay for $120, and your suite is $150, then throw in breakfast, restaurant discounts, or a couple of tickets to an in demand production. Always seek to offer much, much, more than what your customer expects and they will continue to buy, regardless of the fact that you cost more than your competitor. Instead, they will look at you as the deal, and the others as the cheap version of the real thing. On line, the same thing can be done by including extra products in value packages that appeal to a price-conscious consumer. Just remember, that it isn’t really the price tag that is usually the main objection a buyer has towards purchasing a product, it’s more about the value they receive for the money they spent. So, make sure that they get more than their money’s worth.

 

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Red Hot Internet Marketing – Innovation With Applications

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Red Hot Internet Marketing – Innovation With Applications

Innovation is going to help you succeed where others fail. If you don’t innovate during these tough times, your product line will get stale and your company will have a harder and harder time differentiating themselves from everyone else. But, by doing something unique that shows off what an innovative business you are, it can give you the online image that you are a smart, hip, and with it company that is going to keep getting better and better. But, how do you do this when you don’t want to spend a ton of money and time on research and development on products that may not earn more then they took to develop. Well, until the time comes to unroll your big innovation, you can opt for small innovative gestures that show your customers you really are on the leading edge. For that, Internet and social networking applications can be a really easy way to get the right attention without too much in depth research or commitment.

 

Website Applications

 

Even if you don’t decide to develop your own, there are plenty of website applications you can use on your own website to give the impression that you are technologically savvy and innovative. If you have a stock market website, why not include some stock quote applications? If you are a mortgage lender, mortgage calculators make ideal tools to add to your website because they help your buyers determine how much house they can afford.

 

You can even hire someone to create special applications for your website to further promote some product. For instance, recently, a website call Telonu.com that offers reviews of employers also created an application that tracks the layoffs in the different companies. People who go to the site cannot only get an idea of how good they are to work for, but whether they are stable, growing companies or not.

 

Social Networking Applications

 

There is a great glut of applications on social networking sites, like Facebook. But, there’s always room for one more, if it is genuinely innovative and engaging. These make an excellent foil to introduce new customers to your business and to interact in a manner that is non-threatening and friendly. Different examples of popular applications on Facebook are L’il Green which gets environmentally conscious people to build virtual gardens and save rain forest while they’re doing it. If an application is well accepted, it can spread across Facebook very fast, landing you in practically everyone’s inbox.

 

You can hire someone to create a Facebook application or you can do it yourself. Basic ones are generally just a collection of images that are used to promote some concept and that are fun to send as gifts to others on the same social networking site. Just downloading one application will often get you a link to create your own application, should the mood suit you and you have a firm concept that promotes your business niche too. Don’t just go willy-nilly. Try to use the application to help provide exposure for some area within your business that is targeting a specific market niche.

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