Competing for the lowest price is a bad decision during times of crisis

Member Article

Businesses eager to compete in an ever-changing market ought to give attention to their picture quite than their price, in accordance with new analysis from Nyenrode Business University.
The analysis, which checked out Western European organizations, has recognized which aggressive methods are the handiest.
According to Professor Henry Robben, Professor of Marketing: “We discovered that it is particularly the picture element of advertising and marketing methods that predicts whether or not a firm has an edge over different firms in the market.”
“The most profitable firms make use of advertising and marketing methods by which picture predominates. In addition, we discovered that shedding firms considerably competed on low price extra typically. As a consequence, we may formulate a easy aggressive recipe for profitable in a market, create a constructive and robust picture, and don’t compete on price.”
They additionally surveyed the 21 core advertising and marketing processes in organizations. It seems that processes comparable to new product growth and searching for partnering and alliances are excessive on decision-makers’ agenda.
However, in accordance with the analysis these processes are usually not associated to failing or profitable in a market. It is processes comparable to choosing goal markets and strategic planning that differentiate between profitable and shedding.
Using an elaborate questionnaire, the undertaking collected knowledge from almost three thousand respondents, representing tons of of firms and enterprise items. The analysis has been accomplished with Professor Rudy Moenaert of TIAS School for Business and Society. Results have been reported of their e-book “Marketing Strategy & Organisation” and of their forthcoming e-book “The Customer Leader.”

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https://bdaily.co.uk/articles/2021/08/06/competing-for-the-lowest-price-is-a-bad-decision-during-times-of-crisis

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