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The Definition of Internet Marketing Price and Price War

Source: Shangpin China | Type: website encyclopedia | Time: 2015-06-14
With the popularization of the Internet and the development of online marketing, the price in online marketing has many new features and connotations. Reviewing and studying the change and development of price concept in online marketing, and re understanding the characteristics and advantages of online marketing price, we can better use the price strategy in online marketing to promote products.
 
The Definition of Internet Marketing Price and Price War

1. Definition of online marketing price

In a narrow sense, the price of online marketing means that people Website construction outsourcing The amount of money spent on goods or services; In a broad sense, online marketing price refers to the exchange between consumers and sellers in order to obtain certain goods or services, including money, time, energy and psychological worries.

It is not difficult to find out from further analysis of the definition that online marketing price includes two meanings: one is the quantifiable cost, that is, the amount of money customers will pay to use a product. This is a narrow understanding of price and the price concept in people's minds. It can be called the price of the product (service), and the other is the intangible cost factor that cannot be quantified, that is, all the costs paid by customers in the transaction process except the monetary cost, such as the time and energy spent by customers looking for products and the psychological worries caused by the virtual nature of the network. Compared with monetary costs, these costs are difficult to quantify with specific figures, and there are large differences between different customers, even the same customer at different times, so they are uncontrollable.

First, it is necessary to divide the price of online marketing, which can help people better understand the price strategy. For enterprises engaged in online marketing, only by taking these two factors into consideration, can they formulate a successful price strategy. Because of the unquantifiable factors in the composition of broad price, online marketing enterprises have more room to play, which can help enterprises effectively avoid entering the vicious quagmire of price war.

2. Network marketing pricing and price war

The network makes the price of products, a quantifiable price factor, very transparent. In order to attract customers, many enterprises have set lower prices, resulting in a vicious circle of price reduction for the entire industry or related industries. For these enterprises, it is a bitter experience, which makes them enter the situation of meager profits, no profits or even losses, which any enterprise would not like to see more and more. In China, from the color TV industry, the pioneer of price war, various price wars have been going on. Although in the short term, enterprises have increased their market share by reducing prices, in the long term, it is not worth the loss. For example, Changhong, a famous enterprise in the color TV industry, once gained a large market in the price war it pioneered, But it ended up losing money, which made Changhong fall into a dilemma of "becoming bigger but not stronger".

The price war is a "double-edged sword". If it is not properly used, it will get bogged down. More and more enterprises realize that although the lower price will have a certain attraction to consumers, it is not a decisive factor, and rational consumers will consider more. The broad definition of online marketing price has opened up a new way for enterprises to price, that is, in addition to the marked price of products, they can also make contributions to other non quantifiable costs, which can also be successful, because in addition to a small number of customers who are particularly sensitive to the marked price of products, there are also customers who pay more attention to other non quantifiable costs. That is to say, in addition to reducing the cost of money

(Product price), enterprises can also choose to reduce the time cost, energy and psychological burden and other non gold costs. As a loyal customer of IBM said, "As long as IBM's products are not too expensive, we will always use their products because they have satisfactory services." With the development of the economy and the improvement of people's living standards, customers will gradually pay less attention to the price (product price).

Many other enterprises have realized the value of the broad definition of price and achieved success. For example, Diracs Check Printing Company in the United States can send its check the day after receiving the order, and Dex Pizza Chain promises to deliver the goods to the door within 30 minutes after receiving the order. These two companies rely on speed to win. They are successful by focusing on reducing the time cost of customers.
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