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Michele Neylon :: Pensieri

Michele Neylon :: Pensieri

Technology, Marketing, Domains, Thoughts

Comparative Pricing – When It Doesn’t Make Sense

October 6, 2005 by Michele Neylon 5 Comments

Ryanair any other companies use comparative advertising campaigns to show the publich how much money they can save by choosing to use their services.
You may not like the tactic, but it has logic.
Company A is cheaper than its rival, Company B. Company A points out that it is offering a comparable service/product and at a saving on the price offered by Company A.
Now how would this work if Company A was more expensive than companies B, C, D, E, F, G etc., ?
I ask as I cannot see how this could possibly work.
If Company A sells a comparable product/service to its competitors, but at a higher price, why would a price comparison work in its favour? Surely logic dictates that it would work against it?
The marketing tactics of some companies make no sense whatsoever.

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Filed Under: Business

Michele is founder and CEO of Irish hosting provider and domain name registrar Blacknight. Read More…

Reader Interactions

Comments

  1. Alan says

    October 6, 2005 at 2:00 pm

    You would be amazed and how lazy some people are. If you tell them that you are the cheapest it is easier for them to believe it then search themselves.

  2. blacknight says

    October 6, 2005 at 2:05 pm

    Alan
    That’s a very good point and probably works very well

  3. hostyle says

    October 6, 2005 at 8:09 pm

    As Alan said. There would be very little successful marketting / ad campaigns these days if companies were forced to tell the truth.
    I could insert something smart here about websites that try to trick visitors into clicking their google ads by disguising them as normal site links … but I won’t 🙂

  4. John McCormac says

    October 6, 2005 at 10:07 pm

    Marketing is not meant to make sense – it is meant to sell products or services.

  5. blacknight says

    October 6, 2005 at 10:56 pm

    John – Very true 🙂

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