How should a company respond to a competitor's price change

•Download as PPTX, PDF•

1 like•3,129 views

A firm facing a competitor's price cut must consider several factors in determining their response: the product life cycle stage, their portfolio, the competitor's intentions and resources, market price and quality sensitivity, their own cost structure, alternative opportunities, and whether the market is homogeneous or non-homogeneous. In a homogeneous market, the firm can lower costs, enhance their product, or match the price if beneficial. In a non-homogeneous market, the firm must understand the competitor's intent, whether the price change is temporary, and how it may impact their market share and profits as well as how other companies may respond.

Marketing

HOW SHOULD A FIRM RESPOND TO A COMPETITORS’ PRICE CUT?

THE COMPANY MUST CONSIDER:
PRODUCT’S STAGE IN THE LIFE CYCLE

COMPANY’S PORTFOLIO
THE COMPANY MUST CONSIDER:

COMPETITORS’ INTENTION AND RESOURCES
THE COMPANY MUST CONSIDER:

MARKET’S PRICE & QUALITY SENSITIVITY
THE COMPANY MUST CONSIDER:

BEHAVIOUR OF COSTS WITH VOLUME
THE COMPANY MUST CONSIDER:

ALTERNATIVE OPPORTUNITIES
THE COMPANY MUST CONSIDER:

HOMOGENEOUS MARKET
COST CUT?
ENHANCE ITS AUGMENTED PRODUCT
COST RISE?
MATCH THE PRICE ONLY IF
BENEFICIAL TO INDUSTRY

ISSUES CONSIDERED IN NON HOMOGENEOUS MARKET
WHY DID THE COMPETITOR CHANGE PRICE ?

DOES HE PLAN TO MAKE THE PRICE CHANGE TEMPORARY OR PERMANENT ?
ISSUES CONSIDERED IN NON HOMOGENEOUS MARKET

WHAT WILL HAPPEN TO COMPANY’S MARKET SHARE & PROFIT ?
ISSUES CONSIDERED IN NON HOMOGENEOUS MARKET

WHAT ABOUT OTHER COMPANIES ? WILL THEY RESPOND ?
ISSUES CONSIDERED IN NON HOMOGENEOUS MARKET

RESPONSE TO LOW COST COMPETITORS
FURTHER DIFFERENTIATE THE PRODUCT OR SERVICE

INTRODUCE A LOW COST VENTURE
RESPONSE TO LOW COST COMPETITORS

REINVENT AS A LOW COST PLAYER
RESPONSE TO LOW COST COMPETITORS

SUMMARY
THE FIRM FACING A COMPETITORS’ PRICE CHANGE MUST:
• UNDERSTAND COMPETITORS’ INTENT
•KNOW ABOUT HOMOGENEOUS AND NON HOMOGENEOUS PRODUCT
•TRANSFORM ITSELF OR DIFFERENTIATE ITSELF ACCORDING
TO THE COMPETITOR

AKASH RANJAN PRADHAN
NIT ROURKELA
DURING A MARKETING INTERNSHIP BY
PROF.SAMEER MATHUR
IIM LUCKNOW
WWW.IIMINTERNSHIP.COM
CREATED BY

Marketing Channels Channel Functions Role of Intermediaries Direct Distribution InDirect Distribution Marketing Channel Systems Vertical Marketing System Horizontal MS Multi-channel Distribution Distribution Channels Spatial Discrepancy Temporal Discrepancy Breaking Bulk Need for Assortment Financial Support Channel Flows Three Flows Recognized Degree of Involvement Channel Levels Key Learnings Corporate VMS Administered VMS Contractual VMS Vertical System

Distribution channel desicionsDominic Mackenzie

How should a company set prices initially for product or services?

Bhaskar Jyoti Bora

What marketing decisions do these marketing intermediaries make?

Sameer Mathur

What major type of Intermediaries occupy this sector?

Sameer Mathur

Analyzing Business Markets

Nishant Agrawal

Analyzing Business Markets What is Organizational Buying? Top Business Marketing Challenges Characteristics of Business Markets Buying Situation Participants in Business Buying ProcessThe Buying Center Supplier SearchForms of Electronic Marketplaces Methods for Researching Customer Value Establishing Corporate Trust and Credibility Factors Affecting Buyer-Supplier Relationships What is Opportunism?

Econ ch07 market structures

Ishtiaque Ahmed

Distribution channels marketing management ppt

Ganesh Asokan

Marketing channels

Mohitsh2

Selecting competitor to attack and avoid

Tribhuvan University

Pricing strategies in marketing

Samitha Jayaweera

What buying situations do organizational buyers face

Sameer Mathur

Pricing StrategyDOST-TAPI

Institutional and government markets

Sameer Mathur

How should a company respond to competitors price change?

Sameer Mathur

5th Lecture Industry & Competitive Analysis Mahmood AhmedCity Cool Pvt Limited

What's hot

Ways in which a company can divide the market into segments.

Sameer Mathur

How do institutional buyers and government agencies do their buying

Sameer Mathur

Chapter 14 - Developing Pricing Strategies and ProgramsDr. Ankit Kesharwani

Pricing across product life cycleDr. Chandra Shekhar Singh

How should a company set prices initially for products or services

Sameer Mathur

Marketing - Pricingtutor2u

Marketing channels

Nishant Agrawal

Distribution channel desicionsDominic Mackenzie

How should a company set prices initially for product or services?

Bhaskar Jyoti Bora

What marketing decisions do these marketing intermediaries make?

Sameer Mathur

What major type of Intermediaries occupy this sector?

Sameer Mathur

Analyzing Business Markets

Nishant Agrawal

Econ ch07 market structures

Ishtiaque Ahmed

Distribution channels marketing management ppt

Ganesh Asokan

Marketing channels

Mohitsh2

Selecting competitor to attack and avoid

Tribhuvan University

Pricing strategies in marketing

Samitha Jayaweera

What buying situations do organizational buyers face

Sameer Mathur

Pricing StrategyDOST-TAPI

Institutional and government markets

Sameer Mathur

What's hot (20)

Ways in which a company can divide the market into segments.

How do institutional buyers and government agencies do their buying

Chapter 14 - Developing Pricing Strategies and Programs

Pricing across product life cycle

How should a company set prices initially for products or services

Marketing - Pricing

Marketing channels

Distribution channel desicions

How should a company set prices initially for product or services?

What marketing decisions do these marketing intermediaries make?

What major type of Intermediaries occupy this sector?

Analyzing Business Markets

Econ ch07 market structures

Distribution channels marketing management ppt

Marketing channels

Selecting competitor to attack and avoid

Pricing strategies in marketing

What buying situations do organizational buyers face

Pricing Strategy

Institutional and government markets

Similar to How should a company respond to a competitor's price change

How should a company respond to competitors price change?

Sameer Mathur

5th Lecture Industry & Competitive Analysis Mahmood AhmedCity Cool Pvt Limited

Situation analysis

TeshomeSirany

pricing theory and procedure, pricing policies and practices

upamadas

Strategic management

Abdul Wakeel

Monopolistic competition

Musthak Manrah

Porter's 5 forces

chandramana

How should a company respond to a competitor's price change

Sameer Mathur

Perfect Competition

tutor2u

PRICING STRATEGY FOR HEALTHCARE MARKETERS

Diane Demet Tangun

Pricing

Manikandan C

Marketstructuresperfectcompetition 101207232006-phpapp01

Manish Kaushik

Competitive business environment ppt

Shlok Kumar

Perfectcompetition 090813075712.ppt-converted (1)

ShoaibRaza555

Pricerajesh panda

Consulting Frameworks - A Reference

Nitin MISRA

Market structures – perfect competitionishwarijoshi

Swot & porterRbk Asr

Principles, Tools, and Techniques; and Various Market Structures; Contemporar...

AlexMPino

Monopolistic practices

Abi Mithra

Similar to How should a company respond to a competitor's price change (20)

How should a company respond to competitors price change?

5th Lecture Industry & Competitive Analysis Mahmood Ahmed

Situation analysis

pricing theory and procedure, pricing policies and practices

Strategic management

Monopolistic competition

Porter's 5 forces

How should a company respond to a competitor's price change

Perfect Competition

PRICING STRATEGY FOR HEALTHCARE MARKETERS

Pricing

Marketstructuresperfectcompetition 101207232006-phpapp01

Competitive business environment ppt

Perfectcompetition 090813075712.ppt-converted (1)

Price

Consulting Frameworks - A Reference

Market structures – perfect competition

Swot & porter

Principles, Tools, and Techniques; and Various Market Structures; Contemporar...

Monopolistic practices

Recently uploaded

Playlist and Paint Event with Sony Music U

SemajahParker

Winning local SEO in the Age of AI - Dennis Yu

DigiMarCon - Digital Marketing, Media and Advertising Conferences & Exhibitions

Mastering Local SEO for Service Businesses in the AI Era is tailored specifically for local service providers like plumbers, dentists, and others seeking to dominate their local search landscape. This session delves into leveraging AI advancements to enhance your online visibility and search rankings through the Content Factory model, designed for creating high-impact, SEO-driven content. Discover the Dollar-a-Day advertising strategy, a cost-effective approach to boost your local SEO efforts and attract more customers with minimal investment. Gain practical insights on optimizing your online presence to meet the specific needs of local service seekers, ensuring your business not only appears but stands out in local searches. This concise, action-oriented workshop is your roadmap to navigating the complexities of digital marketing in the AI age, driving more leads, conversions, and ultimately, success for your local service business. Key Takeaways: Embrace AI for Local SEO: Learn to harness the power of AI technologies to optimize your website and content for local search. Understand the pivotal role AI plays in analyzing search trends and consumer behavior, enabling you to tailor your SEO strategies to meet the specific demands of your target local audience. Leverage the Content Factory Model: Discover the step-by-step process of creating SEO-optimized content at scale. This approach ensures a steady stream of high-quality content that engages local customers and boosts your search rankings. Get an action guide on implementing this model, complete with templates and scheduling strategies to maintain a consistent online presence. Maximize ROI with Dollar-a-Day Advertising: Dive into the cost-effective Dollar-a-Day advertising strategy that amplifies your visibility in local searches without breaking the bank. Learn how to strategically allocate your budget across platforms to target potential local customers effectively. The session includes an action guide on setting up, monitoring, and optimizing your ad campaigns to ensure maximum impact with minimal investment.

Mastering Multi-Touchpoint Content Strategy: Navigate Fragmented User Journeys

Search Engine Journal

Digital platforms are constantly multiplying, and with that, user engagement is becoming more intricate and fragmented. So how do you effectively navigate distributing and tailoring your content across these various touchpoints? Watch this webinar as we dive into the evolving landscape of content strategy tailored for today's fragmented user journeys. Understanding how to deliver your content to your users is more crucial than ever, and we’ll provide actionable tips for navigating these intricate challenges. You’ll learn: - How today’s users engage with content across various channels and devices. - The latest methodologies for identifying and addressing content gaps to keep your content strategy proactive and relevant. - What digital shelf space is and how your content strategy needs to pivot. With Wayne Cichanski, we’ll explore innovative strategies to map out and meet the diverse needs of your audience, ensuring every piece of content resonates and connects, regardless of where or how it is consumed.

BLOOM_May2024. Balmer Lawrie Online Monthly Bulletin

BalmerLawrie

The New Era Of SEO - How AI Has Changed SEO Forever - Danny Leibrandt

DigiMarCon - Digital Marketing, Media and Advertising Conferences & Exhibitions

In this presentation, Danny Leibrandt explains the impact of AI on SEO and what Google has been doing about it. Learn how to take your SEO game to the next level and win over Google with his new strategy anyone can use. Get actionable steps to rank your name, your business, and your clients on Google - the right way. Key Takeaways: 1. Real content is king 2. Find ways to show EEAT 3. Repurpose across all platforms

Winning local SEO in the Age of AI - Dennis Yu

DigiMarCon - Digital Marketing, Media and Advertising Conferences & Exhibitions

Consumer Journey Mapping & Personalization Master Class - Sabrina Killgo

DigiMarCon - Digital Marketing, Media and Advertising Conferences & Exhibitions

The Secret to Engaging Modern Consumers: Journey Mapping and Personalization In today's digital landscape, understanding the customer's journey and delivering personalized experiences are paramount. This masterclass delves into the art of consumer journey mapping, a powerful technique that visualizes the entire customer experience across touchpoints. Attendees will learn how to create detailed journey maps, identify pain points, and uncover opportunities for optimization. The presentation also explores personalization strategies that leverage data and technology to tailor content, products, and experiences to individual customers. From real-time personalization to predictive analytics, attendees will gain insights into cutting-edge approaches that drive engagement and loyalty. Key Takeaways: Current consumer landscape; Steps to mapping an effective consumer journey; Understanding the value of personalization; Integrating mapping and personalization for success; Brands that are getting It right!; Best Practices; Future Trends

5 Big Bets for 2024 - Jamie A. Lee, Stripes Co

DigiMarCon - Digital Marketing, Media and Advertising Conferences & Exhibitions

How to Use AI to Write a High-Quality Article that Ranks

minatamang0021

In the world of content creation, many AI bloggers have drifted away from their original vision, resulting in low-quality articles that search engines overlook. Don't let that happen to you! Join us to discover how to leverage AI tools effectively to craft high-quality content that not only captures your audience's attention but also ranks well on search engines. Disclaimer: Some of the prompts mentioned here are the examples of Matt Diggity. Please use it as reference and make your own custom prompts.

AI-Powered Personalization: Principles, Use Cases, and Its Impact on CRO

VWO

In today’s era of AI, personalization is more than just a trend—it’s a fundamental strategy that unlocks numerous opportunities. When done effectively, personalization builds trust, loyalty, and satisfaction among your users—key factors for business success. However, relying solely on AI capabilities isn’t enough. You need to anchor your approach in solid principles, understand your users’ context, and master the art of persuasion. Join us as Sarjak Patel and Naitry Saggu from 3rd Eye Consulting unveil a transformative framework. This approach seamlessly integrates your unique context, consumer insights, and conversion goals, paving the way for unparalleled success in personalization.

Digital Marketing Trends - Experts Insights on How

DigiMarCon - Digital Marketing, Media and Advertising Conferences & Exhibitions

Marketing as a Primary Revenue Driver - Lee Levitt

DigiMarCon - Digital Marketing, Media and Advertising Conferences & Exhibitions

For too many years marketing and sales have operated in silos...while in some forward thinking companies, the two organizations work together to drive new opportunity development and revenue. This session will explore the lessons learned in that beautiful dance that can occur when marketing and sales work together...to drive new opportunity development, account expansion and customer satisfaction. No, this is not a conversation about MQLs and SQLs. Instead we will focus on a framework that allows the two organizations to drive company success together.

Traditional Store Audits are Outdated: A New Approach to Protecting Your Bran...

Auxis Consulting & Outsourcing

De-risk Your Digital Evolution - Hannah Grap

DigiMarCon - Digital Marketing, Media and Advertising Conferences & Exhibitions

It's another new era of digital and marketers are faced with making big bets on their digital strategy. If you are looking at modernizing your tech stack to support your digital evolution, there are a few can't miss (often overlooked) areas that should be part of every conversation. We'll cover setting your vision, avoiding siloes, adding a democratized approach to data strategy, localization, creating critical governance requirements and more. Attendees will walk away with actions they can take into initiatives they are running today and consider for the future.

Turn Digital Reputation Threats into Offense Tactics - Daniel Lemin

DigiMarCon - Digital Marketing, Media and Advertising Conferences & Exhibitions

When most people in the industry talk about online or digital reputation management, what they're really saying is Google search and PPC. And it's usually reactive, left dealing with the aftermath of negative information published somewhere online. That's outdated. It leaves executives, organizations and other high-profile individuals at a high risk of a digital reputation attack that spans channels and tactics. But the tools needed to safeguard against an attack are more cybersecurity-oriented than most marketing and communications professionals can manage. Business leaders Leaders grasp the importance; 83% of executives place reputation in their top five areas of risk, yet only 23% are confident in their ability to address it. To succeed in 2024 and beyond, you need to turn online reputation on its axis and think like an attacker. Key Takeaways: - New framework for examining and safeguarding an online reputation - Tools and techniques to keep you a step ahead - Practical examples that demonstrate when to act, how to act and how to recover

SEO Master Class - Steve Wiideman, Wiideman Consulting Group

DigiMarCon - Digital Marketing, Media and Advertising Conferences & Exhibitions

The session includes a brief history of the evolution of search before diving into the roles technology, content, and links play in developing a powerful SEO strategy in a world of Generative AI and social search. Discover how to optimize for TikTok searches, Google's Gemini, and Search Generative Experience while developing a powerful arsenal of tools and templates to help maximize the effectiveness of your SEO initiatives. Key Takeaways: Understand how search engines work Be able to find out where your users search Know what is required for each discipline of SEO Feel confident creating an SEO Plan Confidently measure SEO performance

Digital Marketing Trends - Experts Insights on How to Gain a Competitive Edge

DigiMarCon - Digital Marketing, Media and Advertising Conferences & Exhibitions

Digital Marketing Trends - Experts Insights on How to Gain a Competitive Edge

DigiMarCon - Digital Marketing, Media and Advertising Conferences & Exhibitions

15 ideas and frameworks on the art of storytelling

Aatir Abdul Rauf

Metaverse Marketing in the Generation of the Internet - Eugene Capon

DigiMarCon - Digital Marketing, Media and Advertising Conferences & Exhibitions

Recently uploaded (20)

Playlist and Paint Event with Sony Music U

Winning local SEO in the Age of AI - Dennis Yu

Mastering Multi-Touchpoint Content Strategy: Navigate Fragmented User Journeys

BLOOM_May2024. Balmer Lawrie Online Monthly Bulletin

The New Era Of SEO - How AI Has Changed SEO Forever - Danny Leibrandt

Winning local SEO in the Age of AI - Dennis Yu

Consumer Journey Mapping & Personalization Master Class - Sabrina Killgo

5 Big Bets for 2024 - Jamie A. Lee, Stripes Co

How to Use AI to Write a High-Quality Article that Ranks

AI-Powered Personalization: Principles, Use Cases, and Its Impact on CRO

Digital Marketing Trends - Experts Insights on How

Marketing as a Primary Revenue Driver - Lee Levitt

Traditional Store Audits are Outdated: A New Approach to Protecting Your Bran...

De-risk Your Digital Evolution - Hannah Grap

Turn Digital Reputation Threats into Offense Tactics - Daniel Lemin

SEO Master Class - Steve Wiideman, Wiideman Consulting Group

Digital Marketing Trends - Experts Insights on How to Gain a Competitive Edge

15 ideas and frameworks on the art of storytelling

Metaverse Marketing in the Generation of the Internet - Eugene Capon

How should a company respond to a competitor's price change

1. RESPONDING TO COMPETITORS’ PRICE CHANGE

2. HOW SHOULD A FIRM RESPOND TO A COMPETITORS’ PRICE CUT?

3. THE COMPANY MUST CONSIDER: PRODUCT’S STAGE IN THE LIFE CYCLE

4. COMPANY’S PORTFOLIO THE COMPANY MUST CONSIDER:

5. COMPETITORS’ INTENTION AND RESOURCES THE COMPANY MUST CONSIDER:

6. MARKET’S PRICE & QUALITY SENSITIVITY THE COMPANY MUST CONSIDER:

7. BEHAVIOUR OF COSTS WITH VOLUME THE COMPANY MUST CONSIDER:

8. ALTERNATIVE OPPORTUNITIES THE COMPANY MUST CONSIDER:

9. HOMOGENEOUS MARKET COST CUT? ENHANCE ITS AUGMENTED PRODUCT COST RISE? MATCH THE PRICE ONLY IF BENEFICIAL TO INDUSTRY

10. NON-HOMOGENEOUS MARKET

11. ISSUES CONSIDERED IN NON HOMOGENEOUS MARKET WHY DID THE COMPETITOR CHANGE PRICE ?

12. DOES HE PLAN TO MAKE THE PRICE CHANGE TEMPORARY OR PERMANENT ? ISSUES CONSIDERED IN NON HOMOGENEOUS MARKET

13. WHAT WILL HAPPEN TO COMPANY’S MARKET SHARE & PROFIT ? ISSUES CONSIDERED IN NON HOMOGENEOUS MARKET

14. WHAT ABOUT OTHER COMPANIES ? WILL THEY RESPOND ? ISSUES CONSIDERED IN NON HOMOGENEOUS MARKET

15. LOW COST COMPETITORS VS VS

16. RESPONSE TO LOW COST COMPETITORS FURTHER DIFFERENTIATE THE PRODUCT OR SERVICE

17. INTRODUCE A LOW COST VENTURE RESPONSE TO LOW COST COMPETITORS

18. REINVENT AS A LOW COST PLAYER RESPONSE TO LOW COST COMPETITORS

19. SUMMARY THE FIRM FACING A COMPETITORS’ PRICE CHANGE MUST: • UNDERSTAND COMPETITORS’ INTENT •KNOW ABOUT HOMOGENEOUS AND NON HOMOGENEOUS PRODUCT •TRANSFORM ITSELF OR DIFFERENTIATE ITSELF ACCORDING TO THE COMPETITOR

20.

21. AKASH RANJAN PRADHAN NIT ROURKELA DURING A MARKETING INTERNSHIP BY PROF.SAMEER MATHUR IIM LUCKNOW WWW.IIMINTERNSHIP.COM CREATED BY

How should a company respond to a competitor's price change

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to How should a company respond to a competitor's price change

Similar to How should a company respond to a competitor's price change (20)

More from Sameer Mathur

More from Sameer Mathur (20)

Recently uploaded

Recently uploaded (20)

How should a company respond to a competitor's price change