Welcome to business development and strategy. If you are in any kind of business, this strategy will help to position your products to the perfect customers and audiences to make it more profitable. No matter in which stage is your business now, either in startup stage or growing rapidly, this formula will help you to position your business at the right place in market. Here under mentioned a powerful outline for you so that you can take decision where to position your business to the perfect selected audience. As you know that selecting perfect audience and target customer is an important issue to grow up your business. All the audience is not your perfect audience or customers, you can not sell your products to everywhere, so you have to select right products added the right value and sell to the right target and selected customers. This is called Products and Price strategy.
Product and Price Strategy is based on four segments. Please through step by step and understand the market to which step you want to position your products and services.
- Chinese Model Market
- Opportunistic Market
- Value for Money Market
- Premium Market
Below diagram will help you to understand the Product and Price strategy at a glance.
- Chinese Model Market: Chinese Model Market is such a market where product price and quality both are low. This market is for lower middle class and lower class mass people who has no sufficient income flow. Products sell in this market is one time products. People buy this products, bring to home, use for few days and then it goes out of work or broken. For example: Chinese toys, house hold goods etc.
- Opportunistic Market: In opportunistic Market, product price is to high, but quality is not so good. This market has no focus on quality, price is focused on this market. Actually this type of market located in railway station, beside highway, at airport, tourist spot or inside cinema hall where same customers not come regularly. In opportunistic market, though there is no repeated customers, new customers come daily, so this market make target to make big profit with medium or low quality products which actual price is very less than their charged price.
- Value for Money Market: Value for Money Market is a standard market where products quality is good and price is reasonable. In this market customers get good quality products which is long lasting, comfortable and there is a resell value if someone wants to sell the used one. Moreover, comparatively the price is in the grip of mass people to purchase, specially for large scale middle class group. For example: Toyota car is good quality, people feel comfortable to use it, it’s a long lasting product and if someone wants to resell the used car, can get a good resell value for this product.
- Premium Market: Premium market is such a market where products quality is too high and price is also higher than any other standard product. The main customers of this market is the elite class people of the society. No doubt about the quality, no matter what the price is, and the business owner of this market makes handsome profit by doing business in this market. For example: Apple iPhone – not need to mention the quality of this product and all of you know the price of an iPhone.
So, comparing all above market make your product and price strategy where you want to position your business. Target your customers based on your business model and branding your business as per your chosen market place and target customers.