Tags – Managing the Impact of Cost Inflation on Marketing
Businesses of all denominations would benefit from some inflation, which is beneficial to margins and allows for cost-increasing initiatives in the future.
The problem is managing the interest rate hikes that are intended to dampen demand in order to limit inflation.
Whatever the macro scenario, it should not overshadow the fundamental marketing exchange process at the heart of it all: bringing forth items and services that customers desire to purchase. If a company’s sector is inflating, it must have a plan for mitigating the problem.
There’s no sense in losing a fantastic product due to the fact that the economy is doing poorly.
When money becomes more valuable, marketers must invest time in researching the link between their goods, pricing, and the market.
Even if inflation is all talk, there’s no harm in gaining a deeper knowledge of this connection.
How Can Marketers Manage Consumer Shock, As Well As Inflation?
How Can Marketers Manage Inflation by Taseer Ahmad
1. Conduct Market Research
You must:
- discard your previous customer segmentation judgments and segment people based on their product usage patterns and price sensitivity.
- go out into the marketplace and talk to customers personally in order to understand their problems and how they are altering attitudes and behaviours as a result of price increases.
- then quantify and develop product and pricing strategies to balance the need to keep both profitability and market share while also adjusting for these changes.
2. Redefine Value
Customers who are cash-poor will be more concerned about the total price than before.
When it comes to motivating cash-strapped consumers, marketers must deconstruct goods and packaging in order to reach critical retail pricing points.
This could include reducing package sizes, a practice that the candy industry is required to do on a regular basis in response to price increases.
3. Use Promotions
During inflation, more consumers than usual will be on the lookout for price cutbacks,
However, it’s best to offer discounts only to those who strategically need them and not give away the store to people who don’t need it.
Instead of slashing prices across the board, focus your efforts on items identified as your inflation-busters.
4. Increase Relevance
Customers must be persuaded to save money on other items rather than yours. Market that fact.
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