Pros and cons of non-price competition
Posted: Sun Dec 22, 2024 8:07 am
The key advantage of non-price competition is its relevance for small and medium businesses. As a rule, companies with a wide market coverage are ready to offer low prices, but even small firms are capable of improving product quality, improving production, and expanding the product line in accordance with consumer needs.
The main advantages of non-price vietnam number competition
Increased profits. In pursuit of quality, consumers agree to higher prices. Companies do not necessarily have to resort to artificially lower prices - it is more important to simply offer products of consistently high quality.
Stable market position. The trick with price reduction is easy to repeat, but there is no guarantee that your competitors will not be able to sell even cheaper. In turn, selling quality goods provides a constant income.
Reduced dependence on competitors. In addition to increasing profits and winning the sympathy of the audience, the tactics of non-price confrontation contribute to independence and separation from competitors, regardless of the scale of their business.
Increased customer loyalty. Customers are satisfied when a company maintains high product quality. This includes both loyalty to specific products and loyalty to the entire company.
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"9 Types of Customer Loyalty Programs"
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Speaking of disadvantages, it is worth mentioning the lack of experienced specialists who know how to effectively promote themselves in the market, as well as cases of breaking the law in an attempt to attract consumers.
In addition, the use of non-price competition means is associated with significant costs: it is necessary to modernize products, organize promotion, hold special events, expand or completely update the assortment.
Applications of non-price competition
Price competition is the most well-known and quite logical form of market confrontation, but it has its limits. It is not always available and not to everyone.
Conducting price competition is typical for large companies that have numerous tools at their disposal to reduce costs: wholesale purchases at low prices, low-interest loans, and the use of expensive software products in production activities. Other companies are forced to resort to other options.
The main advantages of non-price vietnam number competition
Increased profits. In pursuit of quality, consumers agree to higher prices. Companies do not necessarily have to resort to artificially lower prices - it is more important to simply offer products of consistently high quality.
Stable market position. The trick with price reduction is easy to repeat, but there is no guarantee that your competitors will not be able to sell even cheaper. In turn, selling quality goods provides a constant income.
Reduced dependence on competitors. In addition to increasing profits and winning the sympathy of the audience, the tactics of non-price confrontation contribute to independence and separation from competitors, regardless of the scale of their business.
Increased customer loyalty. Customers are satisfied when a company maintains high product quality. This includes both loyalty to specific products and loyalty to the entire company.
Read also!
"9 Types of Customer Loyalty Programs"
Read more
Speaking of disadvantages, it is worth mentioning the lack of experienced specialists who know how to effectively promote themselves in the market, as well as cases of breaking the law in an attempt to attract consumers.
In addition, the use of non-price competition means is associated with significant costs: it is necessary to modernize products, organize promotion, hold special events, expand or completely update the assortment.
Applications of non-price competition
Price competition is the most well-known and quite logical form of market confrontation, but it has its limits. It is not always available and not to everyone.
Conducting price competition is typical for large companies that have numerous tools at their disposal to reduce costs: wholesale purchases at low prices, low-interest loans, and the use of expensive software products in production activities. Other companies are forced to resort to other options.