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Price competition and marketing strategy

2018-10-26 来源: 51due教员组 类别: Essay范文

下面为大家整理一篇优秀的essay代写范文- Price competition and marketing strategy,供大家参考学习,这篇论文讨论了价格竞争和营销战略。企业间价格竞争的越演越烈源于多种客观的原因,在一定程度上难以避免。价格战可以归结为综合实力的竞争,因此要将价格策略的运用纳入营销战略的系统里去考虑,系统地运用各种营销策略来和价格策略搭配,在营销战略的指导下运用价格竞争策略,才能发挥价格竞争的强烈作用,弥补价格竞争手段的不足。

Price competition,marketing strategy,essay代写,作业代写,代写

The price competition discussed in this paper refers to the reasonable low price competition strategy adopted by enterprises on the basis of sufficient analysis of actual cost, own strength and marketing environment, which is fundamentally different from the unfair competition such as low price dumping. Price competition has been the most common and very powerful competitive means in China's market competition for many years. The phenomenon of "great price reduction" is not uncommon, and "price war" frequently occurs. With the formation of the buyer's market, fierce price competition occurred in the late 1980s. After entering the 1990 s, as a glut of contradictory intensifies, price competition is more and more common in various industries, also more and more fierce, in VCD, DVD, TV, water heater, microwave oven, air conditioners and many other industries fierce price war. Today, included in the price war was IT products, communications products, steel, tourism, and telecommunications services, department stores, newspapers, and many other industries. Generally speaking, the price competition has more and more intense trend.

In recent years, the relationship between market supply and demand in China has changed significantly, forming the buyer's market. The phenomenon of oversupply generally appears in the Chinese market, forcing enterprises to compete for the limited market share with the strategy of lowering price. In 1993, China obviously entered the stage of buyer's market. In 1996 and 1997, there were more and more kinds of goods in excess of supply, and the buyer's market developed faster and faster. After 1998, China fully formed the buyer's market. In the second half of 1998, according to the analysis by the domestic trade bureau on the total quantity of supply and demand of over 600 kinds of major products directly related to people's life and production, the basic balance of supply and demand of products slightly larger than demand accounted for 94.7%, while those in short supply only accounted for 5.3%. Data from the national bureau of statistics show that China's total supply exceeds its total demand by about 10%. According to relevant statistics, by the end of 1998, the stock of various products in China had reached more than 300 billion yuan, equivalent to 40% of the national GDP, indicating that the market at that time had already possessed the main characteristics of the buyer's market. After wto entry, the process of internationalization of the domestic market is greatly accelerated, and the competition of suppliers in the Chinese market is more intense. Compared with multinational companies entering China, domestic enterprises are obviously backward in terms of brand, technology and capital. Therefore, it is particularly important for Chinese enterprises to use price strategies to compete for "medium and low-end markets", which also makes price competition play a more prominent role.

Many industries in our country and the rapid development of industry of redundant construction make many industries there are numerous "homogeneity" competitors, the development of the industry has reached the scale of the bottleneck, the further development of the enterprise need a bigger size and a bigger share of the market, from the point of industry development, realize the market effective configuration of resources will inevitably eliminated _ some competitors. At the same time, "homogeneous" competition also makes consumers very sensitive to price. Therefore, the price competition has a strong effect, can rapidly expand the market share of the enterprise in the market competition with little product difference, and eliminate small competitors. At the same time, price competition in growing industries can often dramatically reduce prices and expand market size. Therefore, the price war broke out in many industries, reclassified the market resources, expanded the production scale of enterprises and eliminated the small enterprises with weak competitiveness. This kind of price competition to realize the efficient allocation of resources by the market has certain inevitability.

As a result of technology and capital, Chinese enterprises cannot compete on core technologies, so they have to compete through cost leadership strategy, which needs to be based on scale effect and take price strategy as the main competitive means. In terms of market share, low price competition can rapidly expand market share, so as to maintain production scale with a large enough market share. On the other hand, the production scale is large enough to reduce costs and maintain low prices. Many manufacturing industries in China have a large number of smaller competitors. To successfully implement the cost leadership strategy, fierce competition on price and scale is required. For example, through the low price war in the "medium and low-end" market, the company achieved the sales volume of 2.5 million units in 2001, achieved the production capacity of 15 million units per year in 2002, and the total production volume of 2002 exceeded 10 million units, far exceeding the scale bottleneck of the development of the mobile phone industry -- 3 million units per year. In order to expand the market share through price war, waveguide is able to support the production scale and conduct price war through cost advantage of scale production support, which can finally break out from the numerous domestic mobile phone enterprises. Such price victory mode can be seen in many industries. Thus it can be seen that the characteristics of industrial structure is also an important reason for the prevailing price competition in China.

For China's current marketing environment, price competition is unavoidable to some extent due to various reasons. The correct application of price strategy can rapidly expand the market share of enterprises and promote their development. For Chinese enterprises, price competition has always been a significant means of competition, but price competition will also have a strong negative impact on Chinese enterprises. At the same time, if price competition strategy is to play a role, it also needs to meet certain conditions. "Cost leadership" is the basis of price competition. All the enterprises that have achieved good results in price war, such as galanz and waveguide, are based on cost advantage. However, it is not enough to focus on cost advantage to win through price war. Therefore, it is necessary to use the combination of various marketing strategies to cooperate with the application of price competition strategy. In the whole process of price competition, effective publicity and promotion should be carried out, and various strategies should be adopted to compensate for the negative effects of price reduction. Generally speaking, it is necessary to take the application of price strategy into consideration in the marketing strategy system, systematically use various marketing strategies to match the price strategy, enhance the effect of price strategy and make up for the deficiency of price strategy through the marketing strategy combination.

As "low price" is always associated with "low quality" in the consumption thinking pattern, it is easy to affect the brand image of the product to significantly reduce the price in the price competition, thus giving consumers the feeling of "low quality". To compensate for the negative impact of price competition, it is necessary to use a variety of marketing strategies within the marketing strategic framework, and make up for the deficiency of price strategies through the combination and complementation of marketing strategies.

For example, the brand image can be maintained in a price war by multiple brands cooperating with each other. In China's small packaging edible oil market, kerry group's "golden dragon fish" has been the first brand, with high-end, modern and healthy positioning has been the largest market share. After the price war of the small-package edible oil industry broke out in recent years, in order to cope with the strong challenge from cofco and other enterprises, kerry group adopted the price competition strategy and reduced the price comprehensively. However, kerry group, which owns several brands, adopts different strategies in different levels of brands.

Another example: the brand image can be maintained through product strategy. Well-known computer brands such as IBM have also adopted the strategy of lowering prices in the price war of China's IT product industry. However, by lowering the price of products and introducing new high-priced products, the brand image can be maintained.

Price competition can easily lead to the strong reaction of competitors and the follow-up of a large number of competitors. In this way, price war can easily turn into long-term "loss-making competition", leading to the loss of the whole industry. In 1999, the price war of color TV led to the loss of the whole industry. To overcome the negative impact of price competition, it is necessary to develop marketing strategies. Through the combination of various marketing strategies and price competition strategies, the scale can be rapidly expanded and the entry barriers can be formed, and the achievements can be made in a short time and the achievements can be consolidated. Therefore, market share can be expanded through price competition, cost can be reduced through "learning curve" effect and scale effect based on market share, and market competition barriers can be built at low cost to consolidate the achievements made by low price competition.

Such as galanz every price is substantially reduced, after several slashed prices, making the price of a microwave oven from the original high-end goods price fall to ordinary consumers can accept the low price, and obvious achievements have been made with each big price cuts, and use the share of the market support to expand production scale and lower unit costs of production. In the end, the entry barrier is built with extremely low unit cost, and the small producers are eliminated, forming an effective strategy combination: sharply reduce the price -- rapidly expand the market scale -- produce a larger scale -- form the entry barrier with lower cost, and eliminate the competitors with small production scale.

The life cycle stage of the product has a significant impact on the effect of price competition. If the product is in the mature stage, it is difficult to expand the market scale greatly and the profit space is small. At the same time, the service, quality and characteristics of the existing brand products have been basically perfected. In the price competition, the enterprise can only play the price card and narrow the profit space, and it is difficult to form differentiation in other aspects. In contrast, a price war during the growth stage of a product can make the market bigger and not pose the most direct threat to other enterprises, especially the dominant enterprises in the market. Meanwhile, the product profit margin during the growth stage is large. Therefore, the price war will not evolve into an industry-wide loss, but get consumers' attention together through the price war, which can achieve multi-win on the basis of expanding the market. For example, the price war of "changhong" in 1996 had a remarkable effect, and the color TV industry expanded the sales volume and made the market bigger through the fierce price war. However, after 1999, ordinary color TV has entered a mature period in China's large and medium city markets, and the subsequent price war is difficult to achieve the ideal effect, resulting in the result of "both losing and hurting". Another example is "wave guide" mobile phone in 1999 after the production license license entered the market. At that time, mobile phones were obviously in the growth stage in rural areas, towns and small cities. As far as the whole country is concerned, mobile phone penetration rate is still low and there is still a lot of room for growth. Waveguide is a focus on small and medium-sized cities such as "low" market to carry out the strategy of "low road brand", on the basis of the scale of production and cost control, the price on the demand of the mobile phone market competition, and avoid the "nokia", "MOTOROLA", etc in the high-end market of confrontation, eventually developing rapidly become a domestic handset "eldest brother". Therefore, enterprises should combine the price competition strategy with the life cycle of products and seize the opportunity of rapid market growth to enhance the role of price competition.

Economic structure has remarkable Chinese characteristics in our country, one of the major characteristics is obvious urban-rural dual structure system, the difference of the economic foundation there are huge differences between the two markets between urban and rural areas, the level of consumption, media publicity channels, sales channels, consumer preferences, price elasticity and sensitivity of different, even in a big city and there are a lot of difference between medium and small cities. Industry internal competition is rooted in its basic economic structure, so the structural characteristics of this market in China for a lot of the price competition has a great influence of the industry, require companies to develop the characteristics of the current marketing environment of the marketing strategy, marketing strategy to guide the price competition, in the most favorable target market, make full use of enterprise resources, play the power of price competition, can achieve good effect.

The increasingly fierce price competition stems from a variety of objective reasons, to a certain extent, it is difficult to avoid. Price can come down to the competition of comprehensive strength, so will the use of price strategies into marketing strategy system to consider, in the use of various marketing strategies to systematically and pricing strategy is tie-in, under the guidance of marketing strategy using price competition strategy, can play a strong role of price competition, make up for the inadequacy of price competition means.

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