Price Elasticity to Identify a Brand’s Competitors Essay

Firms today are in their perspective industries to maximize consumer satisfaction, increase revenue, and shareholders cyberspaces. These tasks require attention to expatiate when pricing their products. There are al modalitys competitors lurking and waiting by the wayside to gain market share and a competitive advantage.When identifying firebrands competitors, toll gingersnap is a major determinant. Demand for a product or armed usefulness constitutes what the companys equipment casualty ordain be and whether the price will be higher or lower than the competitors price.In terms of the elasticity, price increases may decrease demand and price decreases may increase demand. However, according to Kotler, The introduction or change of any price may initiate a response (favorable or unfavorable) from guests and competitors (Kotler, P. and Keller, K., 2012)Ultimately, the concept of price elasticity can identify a brands competitors along with marketing research to identify co nsumer needs, wants, and desires, as well as present-day(prenominal) industry and competitors going- rate pricing.ReferenceKotler, P. and Keller, K. (2012). Marketing vigilance 14E. Upper Saddle River Pearson Education, Inc.How might marketers use conjoint analysis to make better pricing strategies?When determining pricing strategies marketers must perform research that allows the consumer to juncture their opinions in reference to what they need and how important the product or service is to their well-being. One method of doing so is through conjoint analysis. Kotler defines this method as ameans to ask customers to rank their preferences for alternative market offerings or concepts, then they use statistic analysis to estimate the implicit value place on each attribute (Kotler, P. and Keller, K., 2012).Marketers have their work cut turn up for them when a firm or pricing department requests their assistance to put a competitive advantage for their product or service. In c lubhouse for a firm to know and understand what value or benefits the customer expects when utilizing their products and services the use value propositions is of the essence.According to the strategy and performance teach company Edborrows, items that firms need to consider when applying customer value propositions are as follows All Benefits Favorable Points of Differentiation Resonating Focus Resonating focalize highlights one or two critical differences between the firms offerings Generic Value Propositions Operational Excellence Customer Intimacy merchandise/Service Innovation (Barrows, 2010)Price elasticity of demand is a way to determine marginal revenue. Optimal revenue and, more importantly, optimal profit will occur to the point when marginal revenue = marginal cost, or the price elasticity of demandThe proportion of the total sales of a product secured by one particular company or brand