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1、如何应对价格战（How to deal with price war）Price war is a very important marketing means of modern enterprise. It is an important part of enterprises marketing strategy to make rational use of price lever and implement effective market competition in market operation. On the other hand, the frequent price w
2、ar is contrary to the market and the economic law of non normal means of competition, excessive competition behaviors, often resulting in serious losses for the enterprise in the competition, even the enterprise from the aborted. The reason is that the root cause of the price war lies in the current
3、 oversupply of products. The same kind of products are surplus, and the products of each production enterprise are identical in appearance and shape. Quality and performance is not big difference, homogenization serious, after-sales service is not in place and other enterprise factors. In our countr
4、y, the cheap and fine is still the main starting point for our residents to choose consumption. So often the price war can be used by the enterprise, and time tested. Household appliances price war intensified, some enterprises have fallen into the price war of the cycle, the price dropped lower and
5、 lower, but the market is shrinking, corporate profits will decline.The meaning of price warThere is no denying that the existence of price war has its positive meaning. The experts summed up the seven positive roles of the price war:1. price war is the inevitable product of market economy, and it i
6、s also an important part of marketing. 2., price war can quickly promote market expansion, improve social purchasing power and expand domestic demand. 3., price war can eliminate a group of inferior product producers and those who seek short-term interests, and stop repeated investment, so that soci
7、al resources can be rationally integrated and utilized. 4., price wars can benefit consumers directly. Enjoy the quality of modern life with less cost. 5., price war can enhance the competitiveness of national brands fighting overseas markets. 6., price war to speed up product innovation and marketi
8、ng practices. 7. price war urges Chinese enterprises to optimize their management level and human resource quality.Nevertheless, more small and medium-sized enterprises in the actual operation of the market is forced to participate in a price war, because of the strength of enterprises, price policy
9、, market regulation degree and large enterprises can not be compared, the result is often suffered heavy losses, the market fall, business interests.Causes of price warsIn practice, the price competition of the enterprise and to initiate or participate in the price war, mostly because of the product
10、ion enterprises in order to expand market share, occupy the market, improve the enterprise competitive price; some enterprises are sometimes in order to revitalize the capital for the development of new products and processing inventory backlog of products, some of it is in order to improve the indu
11、stry the barriers to entry. In addition, some enterprises have launched a price war for similar products. In order to consolidate their existing market, they have to passively follow blindly and get involved in price wars. For example, in order to improve the barriers to entry of foreign enterprises
12、 after Chinas entry into the WTO, Chinas enterprises have taken the initiative to initiate price reduction initiatives. In that year, the color TV industry Changhong initiative to provoke a price war, other color TV production enterprises have also been followed up.How to set a good price warWhether
13、 it is initiated or passive participation, whether large or small and medium enterprises, the price war is inevitable in daily marketing practice, so in the face of fierce price war, the author thinks that should be how to deal with?:First, adopt differentiation strategy for products. According to t
14、he product quality strategy, market research shows that different customer groups have different price sensitivity and quality sensitivity. For homogeneous products, because of a very clear comparability, in the price war, high priced products are often at a disadvantage. The adoption of differentia
15、tion strategy to deal with the product can obviously reduce the price sensitivity and reduce the adverse effects caused by the price war. This is also one of the most effective methods to deal with price war in most enterprises. Product differentiation processing can focus on the following aspects:1
16、, product appearance, packaging, material, color, process changes. This is the simplest way to highlight the difference between the product and the product by differentiation with the original product. In the actual operation process, the impact on customer price sensitivity in this way is generally small, which is not too great in the price war.2, technological upgrading, technological innovation or major breakthroughs. This is the upgr
