Increasing market share can be dangerous if you do so at the expense of profitability.
Lowering prices is a deadly decision because the lowest price is never low enough. Price discounts can easily make customers happy. As a result your market share grows but your profitability sinks. Being profitable is better than selling more.
Do not ask customers how much they would pay. As a strategic marketer it is your job to find out what customers value of your product and to translate that value in monetary terms.
The value price of a brand is made of the price of the most appealing alternative to your product plus the customer perception of the value of your brand distinctiveness.
There is a technique to calculate it. Stay in touch with us. We’ll explain it this in a future post.
