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Going Cheap Marketing Strategy

The recent introduction of Apples new iPhone 3G has started a debate among entrepreneurs. The debate is on offering (top) quality products for lesser costs to earning the market share. Actually it is not a new marketing strategy but is surely a working strategy. Like with any thing, this ‘Going Cheap’ marketing strategy has both advantages and disadvantages.

On its best side, the strategy really works for introducing a new product or new version of existing product. This is a good strategy when you are marketing some thing which is of similar or better quality than your competitor’s products. The strategy enables companies to earn a big chuck of product market in quick time and to press competitors into a side. One other great advantage is temptation among existing (competitor) product users to replace the existing product with the new cheap product.

But one the other side this strategy only work with products which are fairly high priced, so businesses dealing with low-cost products are not favored to employee this strategy. The strategy requires good marketing and quality products. The company should be able to sell more products than past as this is the only way remain to keep up with the profit.

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