Free «Price Discussion» Essay
For companies to capture the customer, they employ various tactics to ward off competitors (Kevin Lane, 2003). Increasingly, price acts as the weapon that later generates into a price war. Companies may decide to lower the prices of certain products within the same category. This is a tool that helps the company to survive in the competitive market for short periods. In a competitive market, one retaliatory price slashing after another result in a precipitous decline in industry profits. The marketing concept of improving the image of a firm, yet ensure the satisfaction of customers is instrumental in the achievement of growth in a competitive market.
For example, Nivea and Venus are some of the products of a similar category that are essential examples for this study. Most people use Nivea as a body lotion because they perceive it as a product of high quality. In terms of price, Nivea is extremely costly, but some prefer it because of its features and benefits. The prices of Venus, which most women prefer, are reasonably lower. Its features and benefits also make it sell in a market where many competitors exist. Both products employ a well-developed marketing strategy that best suits the products (Chris, 2009). This helps each company to sell its products in a competitive market without slashing prices of the products.
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In terms of product features, Nivea’s collection consists of vibrant colors that enable it to maneuver in the market and compete with Venus products. Nivea body lotion is available for various skin types, hence people can choose the appropriate product. Their packing is also attractive, and it comes in different shapes and sizes, which guarantees its competitive advantage.
Venus is also on high demand because of the trust it enjoys with regard to skin care. Women prefer using Venus as compared to men, because men’s skin does not need special handling. Venus lotion comes in different features with lower prices. Many people will likely go for Venus because of its lower prices. Finally, in terms of value, I would say that Venus is better placed and that is why it has better sales rates than Nivea body lotion. Nivea’s price is roughly $1.5 for 400 ml.
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For companies to capture several customers; they must use the most appropriate marketing strategy. In a competitive market, goods sales are influenced by numerous factors namely: prices, features, brand loyalty, benefits, among others. It is vital for firms to select appropriate marketing strategies that best suit their products.