Price Elasticity to Identify a Brands Competitors Essay Example for Free

terms Elasticity to Identify a Brands Competitors EssayFirms today are in their perspective industries to maximize consumer satisfaction, add revenue, and shareholders profits. These tasks require attention to detail when price their harvest-tides. There are always competitors lurking and waiting by the wayside to gain market share and a competitive advantage.When identifying discolorations competitors, scathe walkover is a major determinant. motivation for a product or service constitutes what the companys price go away be and whether the price will be higher or lower than the competitors price. In terms of the elasticity, price increases may decrease want and price decreases may increase demand. However, according to Kotler, The introduction or lurch of any price may initiate a response (favorable or unfavorable) from customers and competitors (Kotler, P. and Keller, K., 2012)Ultimately, the concept of price elasticity can identify a brands competitors along with ma rketing research to identify consumer needs, wants, and desires, as well as current industry and competitors going- rate pricing.ReferenceKotler, P. and Keller, K. (2012). Marketing management 14E. Upper Saddle River Pearson Education, Inc.How might marketers use conjoint analysis to improve pricing strategies?When determining pricing strategies marketers must perform research that allows the consumer to voice 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 a factor to ask customers to rank their preferences for alternative market offerings or concepts, then they use statistic analysis to estimate the unquestioning value placed on each attribute (Kotler, P. and Keller, K., 2012).Marketers have their work cut out for them when a firm or pricing department requests their assistance to establish a competitive advantage for their product or s ervice. In order 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 coaching company Edborrows, items that firms need to compute when applying customer value propositions are as follows All Benefits Favorable Points of Differentiation resonate Focus Resonating focus highlights one or two critical differences between the firms offerings Generic regard as Propositions Operational Excellence Customer Intimacy Product/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 symmetricalness of the total sales of a product secured by one particular company or brand