Premium pricing – the core of brand marketing!
Marketing departments are often caught between several disciplines where they are accountable, but don’t have the full responsibility. Marketing is for example often accountable for revenue growth, although it is the sales organization that has the full responsibility. Same thing with product collateral. Marketing teams have some accountability, but the full responsibility is actually in the hands of product management.
However, there are of course areas where marketing has the full responsibility and ownership. One such area is branding. The brand positioning is a corporate strategy – owned and managed by the marketing & communication department. A direct sales related aspect, which is tightly connected with brand value, and where the marketing function is therefore responsible, is the ability to charge a premium.
This the soul of brand marketing – to build perceived values that the customer is willing to pay a premium price for. The price difference, between the premium price and the average market price, is one way of defining the business value that marketing delivers. A very interesting KPI to follow up over time and apply in trend analytics.