Do Festive Season Price Slashes Boost Brand Equity?

Do Festive Price Slashes boost brand equity for sustainability in brand building? You surely don’t like to create and build a brand that will die a slow and natural death due to short-term instant gratification profits. Do you? Anyway, the underlying principle to go about it and keep yourself on brand is to strive to make your products and services memorable, recognizable, superior in quality, and reliable to stand out in the market. 

That will boost brand equity for sustainability in brand building. You can never rely on price slashes for brand building. It is not a long-term marketing strategy but a short-term one for instant results that compromises focus on maintaining brand value and stability to your customers. Here are the more human aspects that can keep yourself on brand for sustainable brand building without relying too much on price slashes.

Brand Equity 

Brand equity is the value of your brand based on brand awareness, brand image, perceived value, brand values, and brand loyalty. It is the total of everything you do to keep your brand healthy and ticking 24/7 in the digital marketplace. So, you can create and build your brand equity by consolidating its presence and positioning by making your products memorable and recognizable. And superior in quality and reliability for standing out in the market.

So, brand equity boosts sustainability in brand-building, which is the overall process of marketing a brand to increase brand awareness, promote products, and connect with a targeted audience. You can see we never mentioned price slashing as a brand-building strategy. However, many business owners understand it as one of the most common strategies to increase market share for a product. Here, we will explore the market share and dominance of the whole brand in brand building, not just for a particular product or service.

Brand Equity in Brand Building

Therefore, brand equity as the value of your brand means it is the byproduct of all your brand-building efforts that involve and revolve around using appropriate marketing strategies and tactics that enhance brand reputation and equity for sustainability in the market. You surely don’t like to create and build a brand that lacks reliability in the market due to price fluctuations and lack of stability in its offers. Do you?

So, the question is whether seasonal price slashes help to boost brand equity for sustainability in brand building. Before we dig into this mystery of price slashes and wars, let’s clarify the concepts to get into the context of your brand-building efforts, especially for decision-making in product pricing as an entrepreneur and marketer.

Product Pricing

As an entrepreneur and marketer, knowing how to price a product or service is necessary. Choosing the right price for your product or service does not need rocket science. But overwhelming in an oversaturated market where brands are continuously vying for market share and dominance. That market share game is no longer for only big corporate brands. Any business venture that plays the brand-building game strategically can establish itself as a brand.

That starts with boosting brand equity built through product pricing and profit margins. But most of all, brand reputation and integrity promote brand equity for solid brand building. So, product pricing involves finding a balance between appealing to customers and earning a profit. That is the profitable spot for remaining relevant to your customer needs and the perceived value and benefit of your brand product or service.

 So, in brand building, product pricing is the process of determining the quantitative and qualitative worthiness of your product or service based on internal and external factors of your brand in the market. Mostly, brand building is about the marketing strategies you choose to use and how effective and appropriate they are for your brand products or services in the industry and niche market you are operating from.

Price Slashes as a Marketing Strategy

Price slashing is one of the most traditional marketing strategies that has been used for ages now. It is the most common strategy business companies use to increase market share for a product. So, it is a short-term strategy with a long-term effect in gaining market share and dominance when used appropriately and strategically without hurting industry standards.

 Let’s dig deeper into the whole mystery of price slashes and wars. That can kill the spirit of brand building and compromise brand reputation if you get involved in price slash wars. You witnessed weeks before Black Friday that your email box flooded with promotional messages from numerous brands, competing to draw your attention to their irresistible bargains. Those are the dangerous sniffs of price-slash wars online to avoid in your brand-building process.

So, do seasonal price slashes boost brand equity? Yes or no, depending on whether you strategically do it without a competitive spirit of wanting to outdo other brands in the market that might result in price wars that usually result in stealing customers from competitors or gaining a big slice of the market share, which can also compromise your brand reputation and stability in the industry and niche market.

Human Centric Approach

Human-centric can be the best approach to strategize price slashing as a marketing strategy to ensure that it does not compromise your brand-building efforts by turning into a price war tool. Though we use price slashes and wars as marketing strategies, in the creative entrepreneurial business landscape, more human-centric and people-centered approaches to marketing are the best alternatives.

Thinking of more human-centered approaches for the busy festive season shopping would reduce stampedes and consumers' madness and craziness like this here in the name of marketing campaigns. Here is how you can add value to your brand equity without promoting stampedes and confusion at your doors and online.

You cannot dance expertly in the darkness of the appropriate steps you should take to go with the flow of your brand-building experience. So, here are the aspects you should consider before seeing how price slashes can boost brand equity if you do it strategically without getting involved in price wars. Let’s dig in and explore.

Brand Purpose

Purpose creates a context for your product or service pricing in the market. It will help you have an open mind on what products or services to consider and their pricing in the market. And how they are supposed to fulfill your brand promise, as spelled out in your unique value proposition. Your brand selling proposition is the clarity of your brand promise and how best your consumers understand it in the market. And for consumers to appreciate and flow with the sense and sensibility of your brand in the market industry and niche.

A brand is a brand as long as it can establish its context online by sticking to its purpose. So, limit negotiations on product prices that might compromise its brand equity. A purpose-driven business and brand can grow stable without being shaken by price slashes and wars from competitors.

Brand purpose helps to define appropriate marketing strategies that enhance and support your vision, mission, values, and brand value in the market. So, messing around and losing focus on brand building by getting involved in price slashes and wars will waste resources, time, and energy you can use for better marketing strategies and channels for boosting brand equity in the market.

Uniqueness

No two brands in the market should play the same marketing jingles to attract customer attention. It becomes confusing to the target market. And your brand might sink into a low ebb of zero brand value. Create your marketing jingles based on the purpose and value of your business venture. That will avoid price slashes to attract attention or steal away customers from other brands in the same industry and niche.

 They say price wars usually happen when two or more businesses sell more or less the same kind of product. And they start wanting to outdo each other in the market, which is a suicidal marketing strategy. That lacks creativity and an entrepreneurial mindset of having the drive for innovation to avoid price wars in the market. Uniqueness in business creates a lasting impression, and being different fosters innovation to stand out and be different in the market.

So, there is no room for price slashes and following what other brands do in brand building. But to craft, maintain, and stick to your unique value proposition and fulfill your brand promise in your offers that boost brand equity for solid brand building.

Product Quality

Marketers hardly slash prices on quality products for bargains. Most products or services reduced by 50 % to 75 % are obsolete stock that has seen fashion seasons coming and going with them dangling on shop racks for attention from red hanger sale hoarders to snatch them at slashed prices. As a brand marketing strategy, that means a lack of quality maintenance and focus on value delivery. That compromises industry standards by imposing heavy price slashes on obsolete products. And not only makes your brand questionable but also cheats your customers.

Remember, quality leads to satisfied customers, positive feedback, and lower marketing hassles since the products or services will speak for themselves and make every prospect drool over them. Quality influences brand reputation, expectations, and user experience. So, maintaining a quality stock of reasonable standard value will boost brand equity over heavy price slashes on obsolete products or services.

Most open-minded customers don’t care much about price slashes. They care about you meeting their needs and expectations of the quality appropriate to the price that they are prepared to pay and see as valuable in their life and business requirements. So, do not just slash prices or get involved in price wars. Must provide quality products and services. That is the winning marketing tactic for boosting brand equity in the market.

Reliability

Brand reliability is the best marketing strategy and tool for winning the hearts and souls of your customers. It plays down the price slash and wars game that compromises credibility and trustworthiness in the market. It is also a most sought-after human characteristic in life and business. It helps you deliver the best of yourself in the business world without compromising quality and value in the market. It also optimizes the consistency and efficiency of your offers and services.

Most customers are no longer fans of the price slashes and wars. They now seek reliable, minimalist, and trustworthy brand products or services delivered to their doors timeously with friction-free communication at every touch point in the process and journey. For them, reliability means peace of mind and freedom to choose who they can deal with and who can serve them with dedication and understanding of their needs and pain points without wasting any of their precious hard-to-come-by time.

 Price slashes and wars can create trauma in making valid choices in buying worthy goods based on necessity and usability on the part of the customer. And they also cause a lack of confidence in the market in you as a brand. You might find yourself switching and tweaking prices on your products or services due to fear of competitors in the market. That will erode brand equity and compromise your brand-building efforts.

Stability

Tweaking product pricing might compromise brand stability, resulting in low profit margins and reduced brand equity. No customer wants to deal with a brand that constantly fluctuates in its offers in the market. That draws us back to consistency and quality provision in the market. Price slashes do not guarantee brand sustainability and longevity in the market. So, as an entrepreneur and marketer, consistency in product pricing aligned with your customer’s requirements and expectations will ensure stability in your brand marketing strategies for solid brand building.

The technical sense of stability in business points to Cash, Accounts receivables, Assets, and Liabilities, but here, for the brand building, we are referring to stability in your marketing strategies so that you do not get swayed by tempting short-term sales and marketing disruptive tools in the market, like the generative AI marketing tools. Have a laser-focused picture of your brand marketing strategies and stick with those that seamlessly promote your brand without compromising its stability and survival in the market.

 It's an AI tech world where generative AI tools continue shaking business stability and disrupting the marketing industry with emerging technologies. If you know, you know, and stick to what you know. Limit price slashes and boost brand equity with more stable brand marketing strategies like blog marketing for solid brand building.