A business owner friend once told me, “When times are good you advertise. When times are bad you have to.” He gets it. But too often in tough economic times, if the marketing budget isn’t cut entirely, the temptation is to slash prices and advertise the new lower price. It’s a bad idea to lead with price in advertising.
- Discounting isn’t sustainable.
- The reduced price ad tactic kills surprise and emotion
- Making a purchasing decision is a right-brained, emotional exercise. Price based ads are about numbers and require left-brained thinking
- Low price implies low quality. Cheap doesn’t feel good.
- A low-price strategy isn’t about the product’s intrinsic value. It’s merely a desperate attempt to lower people’s level of disgust.
- Advertising a lower price turns off loyal customers.
- Lowering prices signals a lack of confidence.
Interesting: Results from management consulting company IPA's database of 880 marketing campaigns has found that emotion-oriented campaigns generate twice as much profitability as traditional, hard-sell, reasoning-oriented campaigns.
How do you feel when you buy something and it goes on sale the next day?
How have you changed or adapted your advertising message through the down economy?
Please post your comments below.