Why Competitive Pricing? Reasons for Competitive Pricing

Reasons for Competitive Pricing
Osagie Lee Izekor, Management Consultant, United Kingdom
Consider the role of pricing in the marketing mix 4Ps. Price is a key player in the positioning of a product against competitive products in the market.
Also the price contributes a lot to the perceived value of a product. What do you think?

Competitive Price / Quality Ratio
Paul Heise, CEO, Netherlands
There is no need to "kill" competition, just to outperform them, and they will vanish by themselves. Pricing is just one item to attack them, but price/quality ratio is more important.
I have as a new entrant in the ICT industry successfully decimated competition in 3 years time with a product that was 50% more expensive than anything else on the market. But we had 95% market share.
Ferrari is in heavy competition with many other supercar/sportscar makers, but never wins on price, but rather on premium quality, cutting edge design, and life style elements.

Customer/ Market Focus
Dennis Osei Assibey, Student (MBA), Ghana
I believe that every company that deals with customers must be market oriented, in the sense that each member of the organization should relate to the customer. This will strenghten or close the gap between the organization and the customer, making it easier for the organization to know the exact needs of the customer and deliver at its best. This can solve the competition issue.

Why Competitive Pricing?
Ismail Kashkash, Business Consultant, Saudi Arabia
I have a reservation on "kill competition", we look at the superb impact of red box introduction to a new suitable solution for home videos, it did not kill blockbuster, however, it was an eye opener for the legendary home video provider to revisit their marketing and sales strategy and to finally include the customer as a primary stakeholder in their business model. Competition is healthy for quality, pricing, and innovation.

Competitive Pricing is Just One Element
B Siva Sankar, CEO, Qatar
I also do not subscribe to the "kill competition" concept. Price has never been the only factor in consumer preferences. Also need base, quality, trust, service etc all play a vital role. The whole value chain needs to be addressed to match all consumer expectations rather than just price.

Competitive Pricing for Commodities
Murlidhar, India
If the product is a commodity, then most of our marketing strategies will not be applicable. For commoditized products, pricing is the only criterium.
If we are looking at specific market share (maybe 2-5%), we can play with pricing in such a way that we are competitive till 70% manufacturing capacity is achieved and then we look for premium over competitors. This may help us to penetrate, establish, spread and be profitable.

Success of Competitive Pricing Depends on Scenario
mOhsin, Events Marketer, Pakistan
The success (of failure) of competitive pricing totally depends upon the market. If a country's economy is not good and customers demand cheap prices of products then you go for it and aim to kill competition.
However if people do not compromise on quality and are not price conscious then this strategy will not work.