Licensed books on medicine
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Non-price competition based on customer acquisition is not
lower prices, and based on non-price factors: improving the quality of goods, advertising of brand names, conditions of sales and after-sales service. Non-price competition is associated with certain additional costs, however, in the long run, product differentiation, improvement and non-price competition can increase the demand for the company's products to a greater extent than its costs increase.
Non-price competition is carried out mainly by improving the quality of products and / or conditions for their sale, “servicing” sales, which is two main areas:
? improvement of technical characteristics of the goods - competition for the product;
? improving the adaptability of the product to the needs of the consumer by changing the conditions of sales and competition according to the conditions of sales.
Product competition is based on the desire to capture part of the industry market through the release of new products that are either fundamentally different from the old model, or represent its modernized version.
Competition based on quality improvement is controversial. On the one hand, improving quality serves as a way to covertly lower prices and expand sales, on the other hand, this subjective assessment by the consumer of the quality of the goods opens up the possibility of falsifying quality through advertising and beautiful packaging.
Non-price competition by improving the marketing of products is based on the following marketing factors:
? improving customer service (home delivery, children's rooms in supermarkets, etc.);
? impact on consumers through advertising (including promotions and prize draws);
? improving the distribution network (distribution, territorial proximity of outlets to the consumer, courtesy of sales staff, corporate identity of outlets);
? the establishment of benefits for customer service after the acquisition of goods, that is, in the process of its operation (warranty and post-warranty service);
? improving payment terms (discounts, loans).
Non-price competition minimizes price as a factor in consumer demand.
The more unique the offer of products, from the point of view of consumers, the more freedom from marketers in setting prices is higher than that of competing products. Currently, many companies prefer to improve the consumer properties of their product while maintaining or even slightly increasing sales prices.
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