Okay, we know what Content Marketing is, but its effects are not obvious. Does Content Marketing have the ability to influence the classic Marketing Mix? We saw in the first part of this article the positive effects with regard to the product variable. Then it’s time to take a look at the price variable!
Part 2: Integrating Content Marketing into pricing policy
Price is the only variable in the marketing mix that brings income to the business. In addition, it is the only flexible variable since it can be easily and quickly modified. This variable has been strongly impacted by the emergence of the Internet with regard to transparency as well as the ease of comparing prices. And quickly, a culture of discount, in response to increased competition, took hold.
However, Antoine Lendrevie, a web marketing expert, has noticed that internet users are becoming less price sensitive. An integration of Content Marketing strengthens this trend.
Stabilization of the elasticity of demand
To find out if the consumer is sensitive to price, the elasticity of demand makes it possible to calculate the relative change in demand compared to the relative change in price. The elasticity can be positive, negative or zero.
There are several factors explaining the elasticity of demand in relation to price, such as the purchasing situation or the absolute amount of the purchase. The definition of Content Marketing shows that it is a differentiation strategy that has the effect of attracting customers and retaining them over the long term.
Therefore, they cannot easily replace the brand with another. Brand loyalty ideally leads to constant demand, which has zero elasticity.
The influence of the hierarchy of purchasing decision criteria
The elasticity of demand can also be influenced by the hierarchy of purchasing decision criteria. According to an American study, consumers become less sensitive to price as soon as the purchase arouses emotion (University of Pennsylvania Wharton, 2007). Likewise, quality and brand image can trigger purchasing. The price, which has zero elasticity, can then become a secondary criterion in the purchasing process.
The impact on the perceived value justifying a skimming price
Many companies estimate the perceived value of their products through the performance perceived by the customer such as:
This allows them to set the selling price applied on the market. Admittedly, they represent an indicator of quality and positioning, but by using Content Marketing, the perceived value can be influenced in favor of the price applied.
Ben & Jerry’s, for example, managed to apply a “ premium price “Thanks to a justification of a high perceived value:
The brand is recognized for its original Content Marketing strategy. Since 2006, her arrival in England, she launched herself into fair trade thanks to her association with Max Havelaar. Thus in 2010, its founders declared their commitment 100% fair. Ben & Jerry’s has effectively become a playful and committed brand while pursuing its environmental, social and economic missions. The brand is positioned in a “super premium” segment in terms of quality, distribution method and price.
At Carrefour, a 500 ml jar of the brand’s “Blondie Brownie” type currently costs € 6.33 (source: ooshop from 07/20/2015). The pricing policy is characterized as “premium price” or skimming price since the price offered is higher compared to the competition. A 500ml Carte d’Or brand ice cream, for example, costs € 1.74 (source: ooshop from 07/20/2015).
The high price of Ben & Jerry’s, justified by the perceived value, helps reinforce its image of exclusivity.
It is thanks to Content Marketing that the price variable of the Marketing Mix becomes more flexible. Firstly thanks to the product differentiation which allows elasticity of demand, then to the positive influence on the hierarchy of purchasing decision criteria, and finally, to the impact on the perceived value justifying a skimming price.