Pearson Edexcel · A-Level · Economics B
Course version: 9EB0 · Version from Sept 2015
C) Price and non-price competition in global markets o adapting marketing…
Full specification wording
Responding to global demand: c) Price and non-price competition in global markets o adapting marketing strategies for global markets
Price competition in global markets involves firms winning market share by offering lower prices, often achieved through economies of scale.
Checked against the Pearson Edexcel 9EB0 specification (opens in a new tab) on .
- Point 3 of 4
- 3 key terms
Study notes
From the checked teaching notes for this specification point.
The idea
Price competition in global markets involves firms winning market share by offering lower prices, often achieved through economies of scale. Non-price competition focuses on factors like product quality, customer service, and design. When expanding internationally, firms must adapt their marketing strategies to accommodate local preferences, cultural nuances, and legal constraints. This adaptation might involve altering the product mix, adjusting promotional messages, or changing distribution channels.
For example: A global fast-food chain might adapt its menu to include vegetarian options in India to respect local dietary customs, thereby strengthening its non-price competitiveness and ensuring the marketing mix aligns with local demand.
What earns the marks
- Identification of price competition methods such as penetration pricing or cost leadership in a global context.
- Identification of non-price competition methods such as superior quality, customer service, or targeted advertising.
- Explanation of why marketing strategies must be adapted for global markets, referencing cultural differences or income levels.
- Analysis of the impact of adapting marketing strategies on a firm's costs, revenue, and overall global competitiveness.
Common mistakes and how to put them right
Confusing price and non-price competition.
Put it right: Price competition relies solely on changing the selling price, whereas non-price competition uses other marketing mix elements like product features or promotion.
Assuming a standardised global marketing strategy always works.
Put it right: Firms often need to adapt their strategies to meet local cultural, legal, or economic requirements.
Believing adaptation only applies to the physical product.
Put it right: Adaptation can apply to any element of the marketing mix, including price, place, and promotion.
Exam tips
- Always link the choice between price and non-price competition to the specific characteristics of the global market being entered.
- Use the 4Ps framework to structure your analysis of how a firm might adapt its marketing strategy internationally.
- Consider the trade-off between the costs of adapting a marketing strategy and the potential increase in global sales revenue.
Try the lesson
The start of the Responding to global demand: c) Price and non-price competition in global markets o adapting marketing strategies for global markets lesson, made from checked teaching notes for this specification point.
Have a go first
Which of the following is an example of a business adapting its non-price competition strategy for a global market?
Listen
Price competition in global markets involves firms winning market share by offering lower prices, often achieved through economies of scale. Non-price competition focuses on factors like product quality, customer service, and design. When expanding internationally, firms must adapt their marketing strategies to accommodate local preferences, cultural nuances, and legal constraints. This adaptation might involve altering the product mix, adjusting promotional messages, or changing distribution channels. For example, a global fast-food chain might adapt its menu to include vegetarian options in India to respect local dietary customs, thereby strengthening its non-price competitiveness and ensuring the marketing mix aligns with local demand. A strong answer earns marks for these points. Identification of price competition methods such as penetration pricing or cost leadership in a global context. Identification of non-price competition methods such as superior quality, customer service, or targeted advertising. Explanation of why marketing strategies must be adapted for global markets, referencing cultural differences or income levels. Analysis of the impact of adapting marketing strategies on a firm's costs, revenue, and overall global competitiveness. A common slip: Confusing price and non-price competition. Instead, Price competition relies solely on changing the selling price, whereas non-price competition uses other marketing mix elements like product features or promotion. Exam tip: Always link the choice between price and non-price competition to the specific characteristics of the global market being entered.
See it
Key words
Say what each word means before you turn the card.
Price competition
Try answering aloud or in your head before turning the card.
Non-price competition
Try answering aloud or in your head before turning the card.
The marketing mix
Try answering aloud or in your head before turning the card.
See every definition
- Price competition
- Winning market share in global markets by offering lower prices, often achieved through economies of scale.
- Non-price competition
- Focusing on factors such as product quality, customer service and design rather than changing the selling price.
- The marketing mix
- The elements of product, price, place and promotion, which a firm may adapt so that it aligns with local demand.
Label the diagram
Some boxes have lost their names. Pick the right name for each number.
1Box 1
2Box 2
3Box 3
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