Competition, managing the conflict thoughtfully Cover Image

Конкуренция, управляваща конфлитка обмислено
Competition, managing the conflict thoughtfully

Author(s): Ivanka Kostova
Subject(s): Economy, Financial Markets, Marketing / Advertising, Business Ethics
Published by: Висше училище по сигурност и икономика (ВУСИ)
Keywords: competition; price; advantage; sales; profitability

Summary/Abstract: No other weapon in a marketer's arsenal can increase sales faster or more effectively than price. The price discount, whether explicit or disguised with discounts, coupons or generous terms, is usually a sure way to increase immediate profitability. However, earning sales at a price is consistent with long-term profitability only when managed as part of a marketing strategy to achieve, use or maintain a long-term competitive advantage. No price reduction should be undertaken simply to make the next sale or to achieve some short-term sales goal without balancing the likely reactions of competitors and customers. The key to profitable pricing is to build and maintain a competitive advantage. There are times when reducing prices is in line with building an advantage, but it is never a suitable substitute.

  • Issue Year: XVIII/2021
  • Issue No: 1
  • Page Range: 111-124
  • Page Count: 14
  • Language: Bulgarian