Reasons why Brands & Manufacturers Should monitor their MSRP/MAP prices

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06/05/2020

Profile picture for user Angela de la Vieja

Angela de la Vieja

In the digital age, where online sellers proliferate more than ever, controlling recommended prices has become a really difficult, if not impossible, task without the use of price monitoring tools. Therefore, more and more manufacturers are turning to these, helping them to simplify this complex, yet essential, task and allowing them to have prices under control and thus get an overview of each market where they operate.

Identify who sells what products

Having a pricing tool can, for example, help you discover if there are unauthorised sellers on the various online marketplaces who may be following pricing strategies that could damage your brand's reputation or even selling counterfeit products. This last feature is quite unknown by manufacturers and is achieved by analysing the stock changes made by their distributors, consumer reviews about products and also any suspicious price changes.

Protect your brand image

It is vital for manufacturers to be able to know exactly what price their products are sold at and to know if their MAP policy is being complied with or not. However, this goes beyond simple monitoring and is closely linked to the maintenance of each brands image. The lowering of the minimum price required by any manufacturer could lead to a worsening of their image and that of their products and thus have an impact on consumers' perception of their brand. By analysing prices with the use of an automated tool, you can react in time to these unfair strategies that are unfavourable to your brand. 

Preventing price wars

MAP stands for Minimum Advertised Price, i.e. the minimum price at which manufacturers allow their distributors advertise each product. A tool like Minderest can help identify if your dealers are respecting this set minimum, allowing you to identify and prevent a future price war from the outset. Understanding the behaviour and price trends within your distributors will allow you to get ahead of your strategies and take control.

The key to discovering your brands positioning in the market

The presence of competitors in each market is increasing rapidly and consequently manufacturers need to know if the information about their products, as displayed on each online channel, is correct. Some pricing tools will allow them to identify the entire product assortment their distributors represent along with competitor products, as well as their positioning with them.  In addition, you will have access to product data such as: images, descriptions, prices and ratings or reviews from end-customers, together making it possible to evaluate their true presence in the digital market.

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For a quick understanding, behavioral tracking refers to gaining in-depth knowledge and insights into consumers through their web data. Their browsing habits, spontaneous decisions, shopping interests, and preferences come under behavioral tracking. 

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Companies can use customer behavior data as a tool to strengthen their hold on the market. A customer’s preferences, values, and tendencies allow businesses to work in sync with them through the collected data. Apart from this, customer behavior can also aid in:

Tailoring customer needs for customer retention

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One of the best ways customer behavior data affects a business is by upgrading the value of customers for the business. The customer’s characteristics allow the company to target the people that match the business prospects well. 

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Saint Valentine’s Day, always a good opportunity

V-Day is looming, a long-awaited date for all and also a good occasion for the eCommerce. According the study conducted by Prosper Insights and Analytics, it is forecasted the average consumer expense that day will be the highest in last years. Furthermore, 25% of them will buy online, which means an increase of 4% regarding 2014 (The US department of Commerce). This is, therefore, a key date where market competitiveness increase and which could be assumed as a big opportunity for our business or, a big fail if we do not adopt the correct strategies.

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