“No competition, no progress.” This quote from Bela Karolyi is often true when it comes to products in the marketplace. Competition certainly keeps companies on their toes, making sure that they are constantly re-evaluating and improving their offerings. It’s clear that competition has a huge effect on the Product aspect of marketing. But what about the Price side of things?
How do we use the marketing tool of Price to keep our customers in a competitive space? How do we react to our competitor’s prices? What effects will this have on our customers?
That’s what we’ll be talking about in this lesson.
In this lesson you will learn: • How your prices affect your competitors • How their price affect you • What a price war is • When a structural advantage can save the day
What is one possible outcome of a company lowering their prices?