Minimum Advertised Price (MAP) is a specific policy developed by the brand or manufacturers of a particular product. As per the policies, businesses can advertise their products at the lowest price point mentioned in the pre-set policy. When brands follow this standard strategy, they are likely to earn reasonable profits. They are likely to gain a solid reputation among competitors in the market.
In this global market, MAPs are available for almost every product available for sale. There are extensive regulations to monitor the price. The involved parties need to keep an eye on all rules to avoid any violation while selling products. However, it is essential to mention that brands need to follow this policy only for advertising. But they can sell products at prices lower than MAP on the store.
Why are MAP policies important for brand value?
Brands selling luxury and expensive goods pay more attention to the MAP policies to establish their brand authority. However, it may be a little challenging for many newcomers to understand MAP policies’ actual use and potential. The first thing in the process is understanding why brands need to follow MAP criteria for their products.
There is no doubt to say that sale is the essential factor for any business. Every brand and manufacturer makes strenuous efforts to boost sales as it further helps build brand reputation and enhance revenues. When the minimum advertised price is set as per the policy, the sellers can be sure that they can meet their sales target with ease. Moreover, price monitoring tools play an essential role in protecting your brand value as well. When you do not follow the policy, the resellers in the market may list the product at a lower price than yours. Such a scenario can destroy your brand’s position in the market by creating some unreasonable expectations in customers’ minds.
Moreover, when MAP policies are not following the competitors can also grab the opportunity to sell products at lower-price than yours. They will automatically take up your potential audience.
How can monitoring tool help you enforce adequate product price?
The main task of the MAP monitoring tool is to monitor product pages actively to avoid any violations in the pricing strategy. When selling products online, it is necessary to use a MAP solution that can monitor prices on multiple electronic marketplaces. It is essential to track product prices on social media channels, store websites, price comparison sites, and marketplaces to choose the best pricing strategy.
Automated pricing intelligence can help growing businesses establish a price position among competitors and resellers. The advanced tools make it easier to get instant notifications on price changes, and they can also alert you on violation detections.