price competition - is a kind of competition, which uses any means other than price cuts.These methods may include the quality of the product itself or its advertising, information, product reliability, compliance with the promised features, After-Sales Service, etc.
particularly relevant this kind of competition in cases where there are certain legal restrictions on price cuts.However, quite often there are situations when the company even if price competition using such methods.Thus, the price and non-price competition today is very often carried out in parallel to enhance the effect of each other.
Non-price methods are aimed mainly at improving the quality of products, the conditions of its implementation and after-sales service.Improving quality can be carried out in two ways: by improving the technical characteristics of the goods (competition product) and by improving adaptability of the goods to the consumer needs (competition under the terms of sales).
price competition based on the desire to take over part of the industrial market using the output to the new products, which are different from the old model of improved performance.Improving quality is a way to hide the decline in prices and helps expand the sales, but the concept of "quality" in this case is a subjective assessment, enabling it to forge by beautiful advertising.
price competition is conducted by reducing costs, which leads to the minimization of prices as the main factor in consumer demand.Goods moving through improved service, packaging, delivery conditions, and other marketing factors.
Improving sales is based on improving the service that accompanies the process of sales and after-sales customer service.This includes advertising, the improvement of trade, the creation of incentives to buyers after the purchase of goods.
In this case, come to the fore the unique properties of the product, its quality characteristics, technical reliability, etc.Such factors make it possible to attract new customers.This suggests that non-price competition has a creative focus, in contrast to the price, which is more characteristic of a destructive character.
to maintain its place in the market, the most commonly used tools such as price, delivery time, payment terms, warranty periods, advertising, quality and quantity of services and other activities.
While improving consumer properties of goods and maintain sales prices literate advertising helps create the effect of "hidden discounts" with a price that is a positive consumer response.
used non-price competition and market penetration with the new branded products or to drive out competitors with similar products.In the world of competition it is confirmed by the success of such certification, the technical level of products, etc., and not low prices.An important role is played by clearance of goods.All this allows us to increase sales, while maintaining the original price or even sell goods more expensive.
This gives rise to non-price competition and a number of market problems.This inter-sectoral mechanism for profits, overcapacity, the impact of non-price factors on sales volume, competitiveness, costs, consumption, consumer preferences.There is also a risk that consumers will not be considered as the seller's proposal more attractive than that of its competitors, and would prefer to buy cheaper goods, which they consider the same more expensive.
For non-price methods of competition include the following.This methods provide benefits by changing consumer characteristics, methods of sales promotion and advertising and public relations techniques.
