Non-price competition has a wide variety of forms, but they can all be combined into two areas:
The first direction is differentiation: modification of the product itself, its different positioning, or provision of additional services.
The second direction is increasing demand through advertising and special promotions.
In order to stand out from other manufacturers, positioning is important in the current environment. Since the markets are mostly represented by numerous sellers selling mostly similar products, each seller strives to make their products unique by changing their characteristics, creating bright packaging, a special style, and so on. As a result, the product or service acquires greater value in the eyes of the consumer, and he expresses a willingness to spend more money on their purchase.
Forms and methods of non-price competition
Non-price methods of competition that improve consumers' perception of products h3
Improving the teacher data package quality of the product. The company's strategy can be based on the main principle - quality, reliability, sense of style. It is possible to expand the functionality, provide convenience to users.
Brand prestige. Consumers tend to choose a brand that supposedly guarantees them better quality. Although from a formal point of view there may be no difference between the products of large and little-known companies, buying a product from a branded manufacturer causes greater emotional satisfaction.
Novelty of the offer. Innovative products are often introduced to the market in certain markets. Companies have to periodically update their product range following their competitors. At the same time, it happens that instead of a complete update, only small improvements are made to the product.
Additional and related services. This may include fast delivery, post-transaction service, free consultations (for example, when initially agreeing on the terms of the contract), extended customer support, installation and setup of equipment, gift certificates, and so on.
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Non-price competition of a company involves changing the principles of doing business, taking into account the direction of activity and the chosen method of differentiation:
Ability to monitor marketing trends to manage small deliveries that include items not available from competitors.
A flexible system of personnel motivation aimed at identifying promising employees and supporting their career ambitions, as well as creating conditions for the manifestation of creative inclinations.
A human resources policy that promotes both the recruitment of valuable specialists and the development of their specific skills.
A corporate culture that is more focused on customers and solving their problems.
Flexibility in purchasing, the ability to quickly find new offers, work with different suppliers, update software, and so on.
Individual approach to consumers: creation of personal offers, additional bonuses.
Non-price competition of a firm
This scheme is most relevant when a small company enters a market where serious brands are present. Simply put, non-price competition is typical of a market with a large number of small firms.
For example, an unremarkable shop cannot offer the same prices or assortment as a federal chain supermarket. At the same time, it may be more attractive for other reasons: close proximity to home, convenient working hours, increased attention to customers or improved service, organization of deliveries of narrow-purpose goods, and so on.
Finally, trade marketing is used first and foremost to stimulate sales – a set of methods that facilitate the promotion of goods from the manufacturer to the consumer. Trade marketing mechanisms make it possible to control the entire sales process. Here you can resort to giving out free samples, coupons, gifts, etc.
In addition, advertising campaigns and promotional tools contribute to sales growth: special events, active coverage in the media, attracting authoritative persons and other options for creating a positive image of the company.
Non-price competition strategie