How To Avoid Competing On Price
Companies that sell raw materials or simple components face a marketing problem - how to give their products recognisable benefits which differentiate them from competitors. A popular tactic is to cut prices in the belief that this is the principal motivation influencing buyers; there being little to choose between other features such as quality, delivery and service. The unfortunate result may be a price war, as competitors retaliate in an attempt to maintain market share. It is our contention that to sell non-differentiated products chiefly on a price platform, is both economically disastrous and unnecessary. This article seeks to show how to avoid price cuts by adopting a more professional and profitable marketing stance.
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