The essence of non-price competition
Posted: Thu Jan 23, 2025 9:13 am
Companies are promoted on the market through price and non-price competition.
Price competition is the reduction of the cost of goods and services, which results in sales growth. In order to attract the majority of consumers and push competitors out of the market, sometimes it is necessary to set prices much lower than those of other manufacturers.
To ensure a price advantage, it is taiyuan mobile phone numbers database necessary to reduce production costs or purchase products from suppliers under the most favorable conditions. Large network companies usually succeed in this.
Non- price competition is a method of market promotion that does not involve lowering prices, but rather continuously improving the quality of the goods themselves, their appearance, technical characteristics and functionality.
The principle of non-price competition is that the company must give consumers more than its competitors can. To do this, it is necessary to expand the range, apply modern technologies, and find effective channels for selling products.
Non-price competition is not connected with price rivalry. Moreover, such products can cost much more than similar models. In order to maintain a stable position on the market in such a situation, the company needs to develop an original and high-quality product, the characteristics of which fully meet the needs of consumers. This includes wide possibilities for use, attractive terms of sale, reliability, durability, long warranty period, unusual design. It is this, and not the cost, that buyers most often pay attention to.
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An example of non-price competition is a supermarket and an organic food store. The latter are more expensive, that's a fact, but they improve your health. Moreover, a small store monitors the freshness of its products more carefully.
Non-price competition means regular monitoring of consumer demands. In addition, it is necessary to obtain information about new technologies and promptly implement them in production, while staying ahead of competitors.
The essence of non-price competition
Price competition is justified when there are a large number of similar companies on the market offering similar products, between which it is difficult to make a choice. In this case, it is possible to stand out from the crowd and increase market share only by reducing the price, and it is desirable to do this suddenly, so that competitors do not have time to prepare. A low price facilitates rapid entry into a new market or consolidation of the current position, but the effect of this does not last long.
Low income has a negative impact on the company, since it is often necessary to mobilize all resources to reduce costs. Cheapness does not contribute to the growth of consumer confidence. In addition, competitors can follow the same path: sooner or later, someone will offer an even lower price. Returning to previous prices means causing dissatisfaction among buyers. As a result, all market participants begin to work at a loss.
Non-price competition serves not to reduce, but to increase profits. Competitors will not be able to react quickly and make appropriate modifications. For some time, there will be no one else on the market who could offer a product with similar characteristics. Non-price competition is the optimal solution for creating a recognizable brand. It provides long-term benefits and brings in truly loyal customers for whom product quality is of the utmost importance.
Price competition is the reduction of the cost of goods and services, which results in sales growth. In order to attract the majority of consumers and push competitors out of the market, sometimes it is necessary to set prices much lower than those of other manufacturers.
To ensure a price advantage, it is taiyuan mobile phone numbers database necessary to reduce production costs or purchase products from suppliers under the most favorable conditions. Large network companies usually succeed in this.
Non- price competition is a method of market promotion that does not involve lowering prices, but rather continuously improving the quality of the goods themselves, their appearance, technical characteristics and functionality.
The principle of non-price competition is that the company must give consumers more than its competitors can. To do this, it is necessary to expand the range, apply modern technologies, and find effective channels for selling products.
Non-price competition is not connected with price rivalry. Moreover, such products can cost much more than similar models. In order to maintain a stable position on the market in such a situation, the company needs to develop an original and high-quality product, the characteristics of which fully meet the needs of consumers. This includes wide possibilities for use, attractive terms of sale, reliability, durability, long warranty period, unusual design. It is this, and not the cost, that buyers most often pay attention to.
Read also!
"USP examples to help you come up with your own that's even better"
Read more
An example of non-price competition is a supermarket and an organic food store. The latter are more expensive, that's a fact, but they improve your health. Moreover, a small store monitors the freshness of its products more carefully.
Non-price competition means regular monitoring of consumer demands. In addition, it is necessary to obtain information about new technologies and promptly implement them in production, while staying ahead of competitors.
The essence of non-price competition
Price competition is justified when there are a large number of similar companies on the market offering similar products, between which it is difficult to make a choice. In this case, it is possible to stand out from the crowd and increase market share only by reducing the price, and it is desirable to do this suddenly, so that competitors do not have time to prepare. A low price facilitates rapid entry into a new market or consolidation of the current position, but the effect of this does not last long.
Low income has a negative impact on the company, since it is often necessary to mobilize all resources to reduce costs. Cheapness does not contribute to the growth of consumer confidence. In addition, competitors can follow the same path: sooner or later, someone will offer an even lower price. Returning to previous prices means causing dissatisfaction among buyers. As a result, all market participants begin to work at a loss.
Non-price competition serves not to reduce, but to increase profits. Competitors will not be able to react quickly and make appropriate modifications. For some time, there will be no one else on the market who could offer a product with similar characteristics. Non-price competition is the optimal solution for creating a recognizable brand. It provides long-term benefits and brings in truly loyal customers for whom product quality is of the utmost importance.