Before you develop a marketing strategy, you should ask yourself what your business strategy is. Your marketing strategy should be based on your business strategy and brand strategy. Your marketing strategy is not equal to your business strategy.
Entering New Markets: To Cut or Not to Cut Prices?
2023/11/29
Your price is high…
When you enter the new international market.
What can you do?
There are typically four ways to solve this problem:
1. Lower your price
Pros: You might have more price advantage.
Cons: You will lose margin.
3. Communicate the value of your products to fill the price gap
Pros: You don’t need to lower the price.
Cons: It requires some time to educate potential clients.
2. Find the segment who are not sensitive to the price and has demand for your products.
Pros: You don’t need to lower the price.
Cons: The segment might be competitive with a long sales cycle.
3. Localize your products with a new product line.
Pros: You can have more price advantage and product portfolio flexibility.
Cons: The manufacturing requires much more investment.
There is no perfect solution for this market challenge.
It all depends on the market and your business strategy.
