What is the difference between a value war and a price war

These are the two marketing strategies in marketing, one is strategic and the other is tactical. Value war: once a commodity talks about the value, there is no very low **, that is to say, the maximum value of a commodity to us in life, work, communication, etc. is often not measured by **, the reason why some people sell the same commodity to a very high ** is actually the value of the commodity is displayed in place.

When the value is in place, the strategic purpose is in place. So it's high. In addition, the new products are mainly based on showing value in the early stage of promotion, in fact, the purpose is to pave the way for the brand in the future.

**War: has outdated commodity marketing tactics but very practical, a commodity price reduction treatment at this time also means that the merchant has ignored the value of the product, they only want to achieve a goal is to use the best to defeat the opponent to maximize market share. So the final result of the ** battle is to set the fire on the body.

But it is also useful for very good merchants, but there are only a few.

Therefore, shopping malls are like battlefields, and there must be strategies and tactics, and different methods should be used at different times. Stressing strategy is for the sake of all-round victory, and stressing tactics is for one-sided victory, but it will cost a lot to pay.

Value is the necessary labor time of the commodity, and ** is the use value of the commodity exchange.

"War" generally refers to a kind of business competition between enterprises through competition to change the market of low commodities, and its main internal power is market-driven, cost-driven and technology-driven, with the aim of suppressing competitors, occupying more market share, digesting inventory, etc., at the same time, the war also refers to the various market competition behaviors through the competition strategy, and there will be cases of winning in some industries.

A cost leadership strategy is also known as a low-cost strategy. When a cost-leading company is equal to or lower than its competitors, its low-cost position translates into high returns. Although a cost-leading enterprise relies on its cost leadership to gain a competitive advantage, in order to become a superior in economic efficiency above average, it must obtain an advantageous position of equal or similar value on the basis of product differentiation compared with its competitors.

The success of a cost leadership strategy depends on the skill of a business to actually implement that strategy day in and day out.

Any enterprise can use the strategy of "price spine source fighting" to strive for a larger market. Cost leaders will not necessarily provoke a "first-class war".

However, cost leaders have a competitive advantage in dealing with the "best war".

"War" generally refers to a kind of business competition between enterprises to reduce the market of goods through competition, and its main internal driving force is market pull, cost promotion and technology promotion, with the purpose of suppressing competitors, occupying more market share, digesting inventory, etc. At the same time, the first war also refers to the various market competition behaviors that take the best as a competitive strategy, and there will be cases of winning in some industries.

The size of the industry's growth space and value space, the speed of technological progress, and the length of the value chain will affect the changes in products. With the introduction of the competition mechanism, the market gradually kicked in and was on the right track, making it possible to reduce prices on a large scale.

War is an inevitable product of the market economy and an important part of marketing. The war can directly benefit consumers, quickly promote market expansion, increase social purchasing power and expand domestic demand. The war can eliminate a number of inferior product manufacturers and those who seek short-term benefits, stop repeated investment, and make reasonable integration and utilization of social resources.

The war prompts Chinese enterprises to optimize their management level and human resource quality, and enhance the competitiveness of national brands in overseas markets. Accelerate product innovation and upgrade marketing practices. Constantly the first war will make the industry products gradually approaching the cost, when the enterprise has no profit to earn, other forms of competition, including brand competition, quality competition, service competition, product variety competition and technology competition, etc., have become the main body of enterprise competition, the improvement of the company's brand, service, quality and technology will also promote the improvement and progress of the entire industry, and at the same time, related industries will also be driven.

** The way to increase turnover at the expense of profits is tantamount to drinking water to quench thirst and fishing with all your might. If the enterprise engages in low-price sales for a long time, then the profit will be reduced, and the investment in R&D, technological transformation, marketing, management and other fields will be reduced accordingly, resulting in insufficient development stamina. The lack of development stamina will in turn further affect the business performance of the enterprise, making the enterprise fall into the quagmire of a vicious circle.

** Battles are applicable in the following situations:

First, in order to create momentum, new enterprises first enter the market at a low price, and after being recognized by consumers, they gradually improve their products for other reasons, such as product upgrades, new functions, etc.;

Second, the company's sales have been hovering for a long time, in order to expand sales volume and increase market share, many companies will also choose to introduce the first war as a marketing breakthrough method;

Third, the enterprise has a large number of product series, in order to promote the sales of other series of products, one or two of them are often sold at a low price, through this special battle, to drive the sales of other series of products;

Fourth, in the field of projects, because many equipment projects have the continuation of the first, second and third phases, and as long as the equipment of a certain enterprise is used in the first phase, it will inevitably be used in the later stage.

Of course, no matter what form it takes, the battle is only a small part of the marketing strategy, and it is far from representing the marketing system and brand promotion path of the enterprise. And the best war is only suitable for individual market situations.

War is a manifestation of the business strategy, is the total cost of the leading strategy, around this strategy, in the choice of business, product selection, logistics, sales channels, etc., will take into account the lowest cost, only in this way can we attract customers with lower product sales.

Added: ** The battle is not"The final victory of the Wars on the Lawn,"The time-tested ** is likely to be the technical challenges of security, functionality, business, service, and all people.

War is a marketing method to attract customers by selling lower than competitors.

War is a manifestation of the business strategy, is the total cost of the leading strategy, around this strategy, in the choice of business, product selection, logistics, sales channels, etc., will take into account the lowest cost, only in this way can we attract customers with lower product sales.

It is to sell products at a lower price of competitors, resulting in mutual price reduction between competitors, which will greatly compress the profits of the enterprise.