help
contact us
site map
advanced search

site search    

 
  « Exhibiting to Marketers -- Mplanet 2006 |  Home  | Discounting Opinions »

Trimming Value Propositions

In his recent article in Markeing News, author Bob Donath suggests that in B:B marketing we may be able to create a competitive advantage by trimming the number of options we give to customers. He adds a caveat that it isn't only trimming the options, but a corresponding trimming of the cost to the customer, thus creating a lowest-price offering.

Referred to as "right-sizing value and price" or 'naked solutions" this approach is based on the assumption that customers place a higher value on low cost over options -- at least in a B:B environment. I wonder if this same gambit is true in the B:C environment.

WalMart, Costco, and other big box mega retailers have all placed their bets that low cost outweighs a bevy of options. But then food chains like McDonalds, Taco Bell, and and Subway have all varied their menu to such an extent that they've adopted Burger King's mantra, "Your way, right away."

Is there a defining line to help marketers distinguish when options are an advantage, or where stripped-down, low cost is paramount? Doesn't stripping down options relegate every product or service to a commodity-level offering?

TrackBack

TrackBack URL for this entry:
http://appserver.marketingpower.com/cgi-bin/blog/mt-tb.cgi/119

Post a comment

(If you haven't left a comment here before, you may need to be approved by the site owner before your comment will appear. Until then, it won't appear on the entry. Thanks for waiting.)


Target both the AMA's 38,000 members as well as the over 750,000 marketing professionals working today in the U.S. and Canada.

MarketingPower Info  l  home page  l  help  l  feedback  l  about us  l  site map  l  privacy policy  l  media kit  l  
AMA info  l  member access  l  AMA publications  l  best practices  l  case studies  l  AMA webcasts  l  articles & reports  l  dictionary of marketing terms  l  AMA events  l  marketing jobs  l  marketing services directory  l  practitioner resources  l  academic resources  l  
 

Copyright © 2007 MarketingPower, Inc. The site contents may not be copied, reproduced, or redistributed without prior written permission of MarketingPower, Inc. or its affiliates.
Got questions? View our Knowledgebase or contact us at 800-262-1150.


Search Engine Optimization by SEO Logic