Download Non-Pricing Strategies

Unit 4: Organisations, Competition and Environment
Non-Pricing Strategies
Is price important?
The Russians produce the Lada, one of the cheapest new cars in the UK. However the most popular new cars
are Fords!
What are non-pricing strategies?
When consumers go shopping, they do not base their buying decisions just on price, they consider other
factors.
Non-Pricing strategies are used by companies to increase sales, expand market share, retain existing and
attract new customers. . .
Non-Pricing strategies are methods and techniques used by firms that don’t involve a change in the price of the
product.
Promotion is important. . .
Promotions and offers are also important to consumers when choosing products.
They will be “tempted” by:
•
free gifts
•
money-off coupons
•
store displays
•
publicity in magazines
Advertising is important. . .
Advertising through the media, can make products more attractive and persuade people to purchase them.
Advertising can create in peoples’ minds an image for a product. . .
Branding is important. . .
Branding is a valuable marketing tool. Branding is the creation of an identity for a company or product.
Branding allows companies to maintain their current market status and enter or create new markets. . .
Non-Pricing Strategies can be found in all of the four types of markets: monopolistic, oligopolistic, competitive
and even non-competitive markets.
However Non-Pricing Strategies will be found most strongly in oligopolistic markets and will be a feature of
competitive markets. . .
A good example of Non-Pricing Strategies are those employed by the computer firm Apple in trying to sell their
Powerbook.
It was used in the film Mission Impossible and was then promoted in a range of TV adverts using clips from
the film. . .
This handout will self-destruct in five seconds.....