Home Management Non Price Competition Strategies | Definitions, Illustrations, And Strategies

Non Price Competition Strategies | Definitions, Illustrations, And Strategies

Non Price Competition Strategies

Non Price Competition Strategies | Definitions, Illustrations, And Strategies: A business rivalry is unavoidable. You can stay relevant and even outperform your competitors with a winning marketing strategy.

Non-price competition is an example of a winning marketing technique that ensures your market relevance. Also, Design or anything similar sets your product or service apart from competitors in non-price competition. This article is for business owners or those considering starting one. You don’t want to drown in the sea of competition.

Non Price Competition Strategies | Definitions, Illustrations, And Strategies

Non Price Competition Strategies

A Definition Of Non-Price Competition

Non-price competition occurs when businesses compete on characteristics or measures other than price. A price war occurs when companies try to win market share by cutting prices. Competitors frequently employ Non-price competition to avoid a price war that leads to a downward spiral of prices.

The non-price competition also incorporates marketing strategies like sales employees, sales promotions, special orders, gifts, coupons, and advertising.

Phases Of Non-Price Struggle

Non-price competition techniques have a hard time changing prices. For this reason you must focus on the following areas to preserve your unequaled position in the industry.

#1. Branding And Public Perception

In some circumstances, the quality difference between two products is minimal. In the US, for example, blue jeans are produced in similar quality. As a result, several manufacturers compete by promoting their brands as high quality.

Because consumers appreciate the brand, certain companies can charge more for similar products. Name brands usually charge more than store brands for basic food items like flour or butter.

However, while such brand advantages emerge from consumer trends, consumer trends may also lead to their downfall. For example, if consumers lose interest in a garment line, the producer may struggle to sustain high prices.

#2. Qualities

Non-price competition means competing on something other than just lower prices. Quality may be one of them. People normally prefer better quality goods if they have to choose between two products with the same price. So, if you can make an item at a comparable cost but superior quality to your competitor, you may be able to grab their market.

In some cases, consumers will pay more for goods believed to be of superior quality. That’s a win-win for Apple, iPhone makers, and organic However. Consumers may not detect a difference in quality for some time.

#3. Design

A product redesign might make it more appealing without increasing production costs or quality levels. This tactic can work well to grab business from competitors, but it can also alienate existing clients.

They may choose the existing design above other options because it appeals to their tastes. In the 1980s, Coca-Cola introduced New Coke, a vivid example of how competition by design doesn’t work. The product was unpopular with traditionalists.

#4. Product Differentiation

Hence, Not every client is the same. Men and women of different ages, nationalities and socioeconomic levels frequent markets. They tend to gravitate towards specific products. Because of this, no single product can appeal to all market segments.

Companies can increase market share by marketing identical commodities to different market segments. However, product differentiation might contribute to increased production overhead costs.

Non-Price Competition Examples And Strategies

Non-price competition techniques include:

  • Comparing your product to a competitor’s.
  • Indicating that what you sell has been verified by a credible environmental organization.
  • Regularly marketing your brand name and logo.

#1. Customization

Notably, customization is a non-competitive tactic. Many companies now provide items that modifying to fit specific client needs. It is a great way to sell things and provide customers with options. Likewise, These items may be accessible to meet the needs of a specific clientele. The goods are can now modifying in length, color, and size.

#2. Brand Loyalty

As a non-price competitive strategy, encouraging brand loyalty is vital for all organizations. Advertising, therefore, greatly aids in promoting a brand. A brand’s reputation grows over time as consumers become accustomed to its marketing. Brand loyalty tends to raise entry barriers. Likewise, Pepsi and Coke, these brands are trusted. Cola competitors are increasingly struggling to compete.

#3 Subsidized Delivery Services

It relates to services. Amazon has put in a lot of effort here. Also, It has successfully affected consumer shopping behavior by offering free delivery. Amazon is expanding its market domination by lowering prices. People no longer need to go shopping because they can order online.

#4. Adaptability

In addition, is another non-competitive strategy. It is a crucial factor to consider while beginning a business. If you already have a firm and want to keep ahead of the competition, you can use this method. Businesses may face bankruptcy if they do not adapt to changing market conditions. Keeping to the previous model when the market has changed may be bad for the firm.

Pros And Cons Of No Price Competition


  • Non-price competition spurs innovation. Businesses nowadays compete via social media, numerous sales strategies, creative advertising, etc.
  • Brands can build a positive reputation among their target demographic.
  • Also, the products’ quality is not compromised, and they are frequently constantly improved.
  • Wide product ranges allow companies to reap scope economies.
  • Buyers also benefit from having a large range of options to choose from.
  • Firms compete to enhance their current state, which is healthy.


  • The biggest downside is that clients take their time identifying the adjustments performed.
  • Therefore, various items require extensive investigation.
  • Customers and competitors may know a lot about the products.
  • Also, buyers may not know which company can deliver a better product.
  • Ineffective advertising may ensue.

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