Market and lack experience,

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Portfolio and loyal customers usually decide to compete on price . This strategy is an opportunity for them to gain advantages, because for many customers the cost of purchase is still the most important factor. An alternative to price competition is non-price competition. This is competition based on the use of properties other than price. The most important ones include, above all, the quality of goods and services, appropriate marketing and advertising, as well as attractive product presentation.


Non-price competition also includes competition in terms of sales conditions. This means that brands can compete in terms of warranty conditions, provision of maintenance services, attractiveness of the purchasing process itself, customer service Algeria WhatsApp Number and additional benefits resulting from the use of the product. Read also: SPACE analysis  a method of determining the strategic position of your company What function does price have in building competitive advantage? Regardless of whether your brand focuses on price or non-price competition, you must determine the value of purchasing the goodservice . This should result from pure production costs, demand, seasonality, and the broadly understood market situation, and its amount should allow the company to stay on the market - thus covering all expenses related to the activity and generate a profit.




The price function in marketing also plays a huge role in determining it . This may include: Informational, i.e. showing the consumer how much a given product costs and how it is positioned against the competition. Image-based, i.e. not resulting from economic realities or taking into account the value of the product, but taking into account its exclusivity. People who buy high-priced products feel that they are buying something luxurious, better, and that they belong to a higher social class. Promotional, i.e. the one promising a promotional rate and thus encouraging purchase, it .