Non-price competition is such a kindCompetition, in which any other methods are used, other than reducing prices. These methods can include the quality of the product itself or its advertising, information, product reliability, compliance with promised characteristics, post-service maintenance, etc.
This kind of competition is especially relevant incases where there are certain legal restrictions on the price reduction. However, quite often there are situations when companies use such methods even with price competition. Thus, price and non-price competition today are often conducted in parallel to enhance each other's effect.
Non-price methods are directed, mainly, toimproving the quality of products, conditions for its implementation and after-sales service. The quality improvement can be carried out in two directions: by improving the technical characteristics of the product (competition for the product) and by improving the adaptability of the goods to consumer needs (competition in terms of sales).
Non-price competition is based on the desiretake possession of a part of the industry market with the help of the output of new products that differ from the old model with improved characteristics. Improving quality serves as a way to hide the decline in prices and helps to expand sales, but the notion of "quality" at the same time remains an assessment of the subjective, giving the opportunity to falsify it due to beautiful advertising.
Non-price competition is conducted throughreducing costs, which leads to the minimization of prices as the main factor of consumer demand. Goods are promoted with the help of improved service, packaging, delivery conditions and other marketing factors.
Sales improvement is based on improvementservice, accompanying the process of sales and after-sales service of buyers. This includes advertising, improving trade, creating benefits to customers after buying goods.
In this case, the uniqueproperties of the product, its quality characteristics, technical reliability, etc. It is these factors that attract new customers. This suggests that non-price competition has a creative direction, in contrast to price, which is more destructive.
To maintain their place in the market, most often use such tools as price, delivery time, payment terms, warranty periods, advertising, quality and volume of service and other activities.
When improving the consumer properties of goods and preserving sale prices, competent advertising helps create the effect of a "hidden discount" from the price, which causes a positive reaction of the consumer.
Non-price competition is also used forpenetration of the market with a new branded product or in order to drive out competitors with similar products. In the world, the success of such competition is confirmed by certification, technical level of goods, etc., and not by low prices. An important role is played by the design of the goods. All this allows you to increase sales, keeping the original price, or even sell the product more expensive.
Moreover, non-price competition generates a number ofproblems of the market. This is an interindustry mechanism of profits, surplus capacity, the influence of non-price factors on sales, competitiveness, consumption costs, consumer preferences. There is also a risk that consumers will not consider the offer of the seller as more attractive than that of its competitors, but prefer to buy cheaper goods, which they consider similar to more expensive ones.
The non-price methods of competition include the following. These are methods of providing benefits by changing consumer characteristics, methods of sales promotion and methods of advertising and PR.
News and Society
News and Society
Arts & Entertainment
News and Society