Abstract
Apart from the quality of the product or service, affordability is the most important variable in the marketing mix. Finding ways to make it easier for people to buy your brand will help entice new buyers, but if the balance between price and value perceptions is off, then the brand will end up losing margin and enter a death spiral. As a brand’s income declines, funds for research and development and marketing are choked off, reliance on price promotion to drive volume grows, and the brand becomes uncompetitive. To avoid this demise, you need to make the brand more affordable—not simply cheaper. A savvy marketer will be able to manipulate people’s perceptions of value in order to maximize the income stream from a brand at a specific price point or find ways to make the brand more affordable without lowering margins.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
Note
Dominique M. Hanssens, ed., Empirical Generalizations about Marketing Impact (Cambridge, MA: Marketing Science Institute, 2009), 19.
Author information
Authors and Affiliations
Copyright information
© 2013 Nigel Hollis
About this chapter
Cite this chapter
Hollis, N. (2013). Affordability at a Price Point. In: Brand Premium. Palgrave Macmillan, New York. https://doi.org/10.1007/978-1-137-51038-9_13
Download citation
DOI: https://doi.org/10.1007/978-1-137-51038-9_13
Publisher Name: Palgrave Macmillan, New York
Print ISBN: 978-1-137-27991-0
Online ISBN: 978-1-137-51038-9
eBook Packages: MedicineMedicine (R0)