The Minimum Advertised Price (MAP) policy is a strategy set by manufacturers to maintain the consistency of market pricing of their products. This policy stipulates the minimum price that retailers should not lower when promoting products in advertisements. The implementation of MAP policy helps to prevent the price war between retailers and ensure that the brand value is not damaged. MAP policy usually includes the following key elements: Price standard: the manufacturer sets a minimum price standard, which all retailers must abide by in advertising. Advertising channels: clearly point out which channels need to comply with the MAP policy, including online and offline retail platforms. Penalty for violation: The manufacturer will take certain punishment measures against retailers who violate the MAP policy, such as canceling cooperation and stopping supply. Enforcement mechanism: Manufacturers need to establish a mechanism to monitor and implement the MAP policy to ensure its effective implementation. MAP monitoring is very important to protect brand value. By ensuring the price consistency of products in all advertising channels, brands can avoid brand image damage caused by low prices. According to market research data, consumers are highly sensitive to price consistency, and price confusion will reduce consumers' trust in brands. For example, a survey of e-commerce consumers shows that more than 60% of consumers said they would be skeptical about brands with large price fluctuations. In addition, MAP monitoring also helps to prevent unauthorized sales and the circulation of counterfeit goods. By monitoring the advertising price, brands can find and deal with retailers who violate the MAP policy in time, thus protecting consumers from low-quality and counterfeit products. This protective measure not only protects the rights and interests of consumers, but also protects the value and reputation of the brand. MAP monitoring helps to maintain fair competition in the market. Without MAP policy, retailers may attract consumers by lowering prices. Although this strategy may increase sales in the short term, it will damage the profit margins of all retailers in the long run and may lead to price wars in the market. The price war will eventually damage the brand value and may lead to the decline of product quality. By implementing MAP monitoring, brands can ensure that all retailers compete on a fair starting line. This strategy encourages retailers to attract consumers by improving service quality, enhancing product knowledge and innovating marketing strategies, rather than relying solely on price competition. According to a survey of retailers, after the implementation of MAP policy, more than 70% retailers indicated that they could devote more energy to improving customer experience. MAP monitoring is very important to maintain the profitability of manufacturers and retailers. A reasonable price system can ensure the profit space of the whole supply chain, thus maintaining the sustainable development of enterprises. A financial analysis for manufacturers shows that the average profit rate of enterprises that implement MAP policy is 15% higher than that of enterprises that do not. In addition, MAP monitoring can also reduce the market uncertainty caused by price fluctuations, so that enterprises can better carry out cost forecasting and budget planning. This stability is very important for the long-term development of enterprises, especially in the period of economic fluctuation. Through automatic MAP monitoring tools, enterprises can perform price monitoring more efficiently and reduce the time and energy input of manual monitoring. According to an analysis of the efficiency of automatic monitoring tools, the monitoring efficiency of enterprises using automatic tools is more than three times higher than that of enterprises using manual monitoring, which significantly reduces the operating costs of enterprises. Manual monitoring of MAP means that brands or manufacturers manually track and record the advertising prices of retailers and ensure that these prices are not lower than the set MAP. This method usually involves the following steps: Price tracking: the brand appoints a special person to regularly check the advertising prices of various sales channels, including online e-commerce platforms and offline physical stores. Violation identification: By comparing the recorded price with the MAP policy, identify the retailers who violate the minimum price standard. Communication and warning: communicate with the illegal retailers, issue a warning and ask them to adjust their prices to meet the MAP policy. Continuous supervision: Even if the retailer adjusts the price, it needs continuous supervision to ensure its long-term compliance with the MAP policy. The advantage of manual monitoring is that it does not require additional software or tool investment, but the disadvantage of this method is that it is time-consuming and error-prone. According to a survey of small manufacturers, the accuracy of manual monitoring is only 65%, and the labor cost is twice that of using automated tools. Automatic monitoring tool refers to the use of specialized software or services to automate the process of MAP monitoring. These tools can quickly and accurately collect and analyze price data. The main steps include: Data collection: Automatic monitoring tools capture price data from major e-commerce platforms through crawler technology. Price comparison: the tool automatically compares the collected price with the MAP policy to quickly identify violations. Violation notification: once a violation is detected, the tool will automatically notify the brand or manufacturer so as to take timely measures. Report generation: Automatic monitoring tools can generate detailed monitoring reports, including key data such as price fluctuation, violation times and frequency. The advantages of using automatic monitoring tools are high efficiency and accuracy, and can save a lot of human resources and time. According to a market research, brands that use automatic monitoring tools are five times faster than manual monitoring in dealing with MAP violations. In addition, the accuracy of automation tools can reach more than 98%, which greatly reduces the errors caused by human factors. Another advantage of automatic monitoring tools is that they can be monitored in real time, which means that brands can respond to price violations immediately, thus protecting brand value and market order more quickly. For example, a study on brands that use automated monitoring tools shows that the average response time of these brands after discovering violations is less than 24 hours, while the average response time of manual monitoring is more than 72 hours. Generally speaking, automatic monitoring tools provide an efficient and reliable solution for MAP monitoring, especially for brands with a large number of retailers and sales channels. With the development of technology, the functions of automatic monitoring tools are constantly improving, providing brands with more customized options and in-depth data analysis to help brands better manage and maintain their market price policies.
2024-10-08
