Qualitative market analysis requires the use of new effective tools. For example, MAP monitoring is one of the processes that help receive such information and adjust business management strategies accordingly. It plays a crucial role in shaping effective business management strategies in today’s competitive market landscape. Let’s take a closer look at its features and advantages.
Characteristics of MAP
MAP, or minimum advertised price, is the cost of a certain product set by the manufacturer. When retailers purchase a product, they agree that the cost cannot fall below the minimum advertised price. In some cases, MAP violations may entail consequences, such as penalties or even lawsuits.
The reason for introducing MAP is quite simple. The policy guarantees fair competition when prices for the same product sold by different retailers remain within the normal range.
Advantages of MAP Monitoring
The benefits of MAP monitoring are obvious for businesses:
Protection of the manufacturer’s reputation. Retailing of goods at a price lower than the average in the market can harm the brand. In particular, it can negatively affect its image as quality is often directly associated with price. Thus, manufacturers should regularly trace if their retailers stick to the agreed minimum advertised price.
Optimum prices. MAP monitoring allows manufacturers to analyze the market as they can access information on price trends, customer preferences, and major competitors. Thus, a manufacturer is able to set the optimum price for a product and stay competitive.
Fair competition. MAP monitoring ensures the reliability and stability of the market. Companies compete for customers by improving their sales proposals rather than manipulating prices.
To be successful, a business should perform quality market analysis regularly. MAP monitoring is the strategy for encouraging fair competition, maintaining brand reputation, and setting optimum prices. The policy helps establish partnerships with other companies and promotes business development in general.
