Guest post by Alex Walker.
Every business or product needs a unique value proposition, something that sets their brand or product apart from the rest and attracts a particular segment of the market. Very often though, businesses rely almost entirely on “lowest prices” as their unique proposition (though it can be argued that at that point it is no longer exclusive at all) rather than trying to differentiate themselves in a truly effective way.
That’s not to say that price matching and racing to the bottom doesn’t provide some advantages, and there are certainly companies (Walmart, Aldi, any of the dollar stores) that have turned it into a winning strategy. But you need to evaluate your brand and market position carefully before deciding this is the marketing strategy for you.
This isn’t only a consideration for etailers. As a growing portion of B2B purchases move online, business marketers will confront more of the same issues (such as price matching) of their B2C counterparts.