Question & Answer: Why is pricing, image, and competition important for new products and/or services?…..

Importance of Pricing : Pricing is one of the new factors which determines the demand and supply for the new product. In today’s competitive market, there are several products which substitues each other. If the pricing is not appropriate as per the quality of the product, the demand of the product shall lie below and the producer shall incur loss. As we know that demand and price are inversely proportionate to each other so, as price rises demand falls and vice versa. Therefore, it is important to proce the products accurately.

Importance of Image : Imaging the product means designing the product which plays a vital role in attracting the market. The economy is going digital and the consumers are prefering shopping online. In such scenario if a product is not designed or imaged properly the consumers shall not be aware of the product and hence, the demand shall be effected accordingly. Therefore, it is important to image the product correctly so as to attract the consumer and increase the sales.

Importance of competition : Competition is necessary as consumers are intelligent these days. They compare and buy n all sectors of consumables. If there shall be no competition, say in monopoly situation, consumers shall not be able to compare the product and they shall lack the knowledge about the product. Competition is a blessing in disguise. It has advantage as well as disadvantages but if works as an advantage for any industry then it benefits more. Competition provides proper marketing and industry skills, teaches how to survive in long run, sustainability is seen in the industry where the competition is seen. Therefore, competition is also important for a new product’s growth.