Poge.

yate

ue Wlaite Conc.epf. OfCompetition 3

Paice Competition & Non paice Competition i

Pace COmpetition
Faice Competition is aeluted with the
paice_ of the paoduct,Ne Rnaw thut
euch and evezspxoducen twdnts to commdnd
the Meaket by- Selling his pxoductian ctd
high evelEoz thutpuzpose h e does paice
COmpetitiom He knowsthe loN ofdemund,
If the plce illbe lowezathe sellin
will be qzecutez In_cuSeaf mano polistics
Gompetiion wheze the fizmg Uxe unlimited,
uncd high Volume of paoducion is done-
the pzice Competition becomeg Cve.ay.
complicate.d
issue foa thep2oduceaan.
one hund he wunts meximum pzofit und
On the otHez hund he wunts to inczeuse
his Sules.

* Nonpaice Comp.cttion :

Non-p2ice compefifion 1s_moae bene.

ficiu)_to the p2oducea
not
becausehe does
havefo fuce his diaectly
pa0duces_Cun intaoduce his paodu.ctSecondls,
with
2

Poge
Date

Some meu Chunge O2 Impovement, new

Sche mes Cun be Cidopted und by thut wuy
ithout touchinq the paice the paoducea
Cun-pzomate his paoduct. This fizms compete
ith aivuls. natonly Hhaoughpaice vuziatior
but clso fhxouqh_ non -paice Competition
expund fheiz_ Sule,

In- Non--paice campetition insteuc of

lauLezinq the pXices,the pzoduceas p2ovide
diffezent facillties to the cansumez such

T o pzOvide faee_home deliueay facility-

C2) Replcicement of the Sold qaodsa
C3) Eazee 5eavice.sS
CH) P20vide wazzunts 9ucauntee faz
the_ Sold q00ds
C5 To adopt_diffezentSchemes to sutisfs
Fhe ConSumea
C6 Some faee qifts with the Sellinq-af-
af
goods
C Some
beftea_qudlityaf goods
C& Paymentfoa the qoods_dUuruble_ o
unduauhle by- the Wqy_Ot instulments
manthly etc
 Page
Date.

In_his wuy he pacducezs.

uttauct_the.

Gonsumeds, They puck the commodityin

ttzuctive puCking

In_sho2t +he puapose of_botha t h e

Competition1s is to paomote Sellinq o
udueati-
to exp.and the muzkets nxough
Sement_ or diffeaent medicthey
Sustuin - foinczeuse Scles

DEuiz &_Unfuiz Competifion

The_ wozds fai cind'unfuiz ze

Delated to_mozuls Amy mdzket_hus the
elements of euninq p2ofitS competition,
2iSk unceztuinty etc Fven with_thep7esence
of cl Fhese elementS the element_of.
mazul1s necesSuZYAS upuzt of Sociu
despon sibility af paoduceas. nd Sellezsthey
huve to be cllezt ubout theiz aoyalty
towwazds the Socieny Cind_cUstamezs,

The aOduceas Should mot

the ConSumezs by paoducinq fulse taust
intaoducinq his paoduct Supeaio o_cll
othe aoducts.
 Page

The epaoduced topaomofe his Sules,

Should narcipplyciny unfuiz meun1s

otheapzoducs
like abusinq 0 huxussiny

Heshould not_caecte ny troubles icinst

the Scalesmun_of the 21vcils

IPR
Fo pezsonul henefits, the paoducez Should
zivuls business sec.aetsand
mot_decluae
infozmution -
The pzoducer muintains
he interests o f
employeesand debentuae- holde25, Shuzeholdeas
and investods,

Nous h e question_Caises thut why 1S

fuia c.ompe titian 2euized

Busine.sS beinq puzt_of he SOciets

hus todischu2ye ifsObli.gutlontowuads
the ocietya The nuin eusons foz
dischuiny the 50Gi 2xesponsibilits ae

s undez -

Public Imuqe

A busiress unit cuneuan g0odwil

and cen win the q0od public imeueby
fuiz competiton,in uh effective und
 Page
bate
esa.ci

efficient munnea. It clsohelpstoCAttaucl

enployeea9bec.uuse
Compefent and efficient
imuqe husC
unit with qood public
goodimpaessian n eveay one's mind

COVeanment Requlutions 3

faom_Goveanment e c l u tian
O be fzee
s viqble-
Cind unnecessuzy i n t e z f e a e n c e i t
fuiàcompefihan
thut_ business fulfill the

3 Suavival d &20wtn

put o f fhe
Evezy busineSS nit 19 c
Every
So.ciets It_ Cun mot Suavive_in 19olautoH,-
So foz its contlnuOUS g20wth, it_needs
vuious
Suppmt faom Societs Aquin, the
esouACeS from_ SOciets aae used, Thezefoxa
business unit Should_ Use cetuin

of ifseazninq foa t h e
Af welfuze of
puzt
the paod peopleThisis the
impoztunt
+he-
feutue of fuiz_Gompetitian.

YD Employee utisfucfion &

Fox evexy_busineS5 unt emplosees iae

the biqqest_dsset taz them. Theze.foe, 1t 1
necesSuay fo Sutisfy- the.m Undez fu
 Page
tote

Gompetition this paimciple

Apuat faom 1S Opezuted
lSo Sluzy, othez benefits shouia
be_ qiven_ to the
would_ impaove employee.s. Ths.
thein paoductivi ts umd.
they-
Cnd
uOOuld impaove theiz paoductivity
they wOuld woaH with ful_dediceiton
ALhicb
cs
ultimctely- benefits the business
Nell uS thee CuStomeAS tO0
5 Consumez Awuaeness d-
NOw q-duys ConsuMEI- huve become
veay cons cious about theiz aiqhts SO,
business unit_ must nof onls_p2oVide
them ALLth t h e qualitufive_und xesonuble
paiced goodsundSeavices but should
ilso quide fhem Cind qive the m necesser
infozmution whenevex needed Under tuja
Competltiom the nfexest of_consumers ae.
paofe.cted by paoducens In_unfui~_Campet-
tion-eVezyfhing- discussEd cbove it i s
opposite to it

Heze we find mcmy unluwtul_conditiop:

applied bythe business Theycampete blindly
withoUt thinkinq ofconsumeas cnd govean
mentThey_onlyknow how toeuan
p2ofitThey apply-
 ,

Foge
ete

Cd ceaxelesss Sellinq of infeaioa

haam public paaducts which
heulh.
C2D Fulse
CD Less inmisleadinc
weiqht cIclveatisements
thun
CHnd net_ weigh Indicutedin MRP

Stule faod tems

E Mulp2uctice
with the Goveanment und
Othez officiuls.
C6 Abuse the
C p0ducts of xivyls paodu.ceas
Infainqement
of_copyaiqht taude muakS
of_othen- p2oduce25.
CB) Hide benefits to
dividends. ShuaeholdeaS to Suye
9 Eyusion_of_ tuxution,
dion less Caze full ubout
paoduct qualits,-
 waite fuctods
Ue - whuts paicing policy
affectinq- t 0 t h e picinq poliyY

policies a n d Settin
Ans. Foamulatinq paice
impoafunf uspect
the p i C e i s t the_most
he
Paice
o f munuce XluL decision -muklnq
whi£h-
2evenue,
n _ fuct isthe Souzce of
mCXimize Aquin,i tS
the fizm_ Seeks to
fiXm Cun
f h e _ m o s t _ i m p o z funt_de vice _C
muaket I f the p i c e
USe. f o expundis
q S e l l e z muy be pushed
1 $et toohiqh
too low-
Out_of the muzket Tfit
mdy not covez COsts 0
isincome
be,-
qt best, fall Shozi of whut it_could
HOweveEZ Settinqpxices is a compliccated
fozmulq
pXoblem und heze_s no peafe.ct
fo doing So whe thedto_paoblemcind
theze is no pezfect fozmulu t o r dain q
SO ALhefhez to Set lawpaice ar
C high paice would depend uponq
numbed offuctoaS Chmda wide veaiety-
of conditions, MoxeaVez, the paidinq-
decision5
is Caitlcu_not only in f h e
beqinhin but _it must be evieialed
and efozmulated faomn timeto tîmee
9.
te

Fuctoa9 affectinq
uneieeiiowne
Paicing Policy
pzoduct1Sc
peteaminingpaicee
foz the
foz paoducez
vey Complicuted proble m
the
befaxe decidinqthe pzice
becuse fuctazs
h u s _ t o considea muny
xoducez s o u X c e of-
the
on athez S i d e p z i c i n q i s
paoducezcunnot ign0ze
evenue, so the
LeE us
hisside of paoductinn uctivty
ctfect-
Xmine Some muin fuctoxs which
picing policy dixecty_od indizectly

OD_objective o f Cusiness

efoze Stuatinq the pxoduction

achvities
the f i a m _ h u s t 0 defexmine cezfuin
the
objectives elutedto diffezent sectozs
muintenunCe
Of paoduction_activity like
und contzol,paofit leve dnd paicinq
policyetc Thoughthe obiectives_uxe
diffezent foz diffeaent Sections, we should
not fozqet_thut theae must be CO-0a-
dinutions umon hem,he abjectives
must n one ine, atheawise theae w i l
b e _conflicts amon them cnd finul
objectives wl_ngt_be achieved The
picins policy mukes +he 9tuge foz
Guningthe paofit.
10.

2) Ntuae of Competition

Undea peafect COmpetition,theze

uaises no paoblem of pice of h e
paoductcs the paoducea does nat fix
p2iceof hispzoduct He hus usf.
to follow the myzket taend und to follaw
he
e_pzIce In thyt Sense he_ 15 not-
the paice muke but he is pzice-fuke

Cut undez impezfect compe tifior

the Situution_diffe.xs, In this competition-
pzicinq palicybeco.mesimpoatuntto
apeaute i n the muket In mono palisticS
competitions theze will_be C u t _ h a o c t '
corMpetition amonqpzoduc.eas Sd paicims
will be c compliccted paoblemsIn_monpoly,
theze- will be no paoblems Cibout paiCing

becuiSe thuf polics 2emainsin the hunds

of monopalistIn_
oligopoly competiian theze

wi be Paice 2igidity beccausencxeis.e o

deczeuse in paicing wi mot be beneficiu
foz p20ducezs.

La Paoduct PaOmation Policies

Pxoduct policyCand paomation _pollcty

Gunnot be thought out in diffeaent dizectign
1

S u m e GOin.
They cIae two sides of the
Theremustbe co-oadinution between

cund promnotion policy.They

paoduct.policy
othe3.
should be cIde.qucofe to euch

CO-0zdinution
line Contlict and
4DDouun Hhe

like to chure
&eneully , he paoducez
muaket,ucCO
the paice af his paaduct inithet becomes t h e
to_his_calculutions. So
ding hexe, we
hsave
paic.e of a paoduct. Cut
Selinq not
thut anlty paoducex'swill is
to note
settlethe pzicinqpolics T h e a e
enouqh to
fuctons which huve qaeut
Cze_cinothes- wo
uae whale-
impoztunce in the muzket, They
3etuiless Tneia functions
culs0
Seliez cnd
puatin_paicinq policy
pluy _an impod funt umicubleSettlement

They Must_huve un
wholesellexs
Cand aetuileas.
behoeen

CRoutineMatter
5D Paicing- S C
thut befoae decidinq the
7 I t i s found Studies
muakete.2
p2Oductthe
pzicincq ofhis
foz slmilu PØaducts
Conditiong
the pmuzket foz his OWh
then he S e t l e s p a i c e
cnd aiseCquestion wh
pxoduct Thexe my
Cinswe is-
s -hhe
e hus
hus
Cpaoducex_does S02 The
12

Page.
Dote.

eriit -

dealINith muzket demund nd muket trend

So hehus to keep aimself ithoH
paice i t w ) -
paoduceas. If he incaeuses Hhe
hit tD the demundinve7sely und i f h e
deczeSeSthe paice thebuyeas Conslde-
his paoduct us n infeziozpacduct In
both the cuSes, the demund wil b e uffectedd-

he p2opoation of routinedependsupon n
followinq- points

p Numbez Of paiCing pecisons i

Some fizms paduce multi pXOducts

Nou the fiam_ hus to tuke_cdecisionS fod
leachpaoductpzicinq
paicinqThefizm_fixes one
pzicinqpolicy foa n impaztunt_paoduct und
then it wil be cpplied foz othezmulti-
pzoducts, Theze will be aJOutine paicing-
umonq_cl he Sub-pXoduc

(2 Avuilubility af udequate dnd aeliahle t

on demund spect
e c t

Reliable Cnd peafect_duta is dequized

for paice fixinq- buf_same times Such_dutu
is not_avuilable In this case the fiamhug
to depend upon mechunicalfoamula,on thee
huse0zicinq un be_p0sSible
 rurye

3competitive Muzket
Some muskets huve" Cut HhzoutCom
petition" Under thissituution, the izm
becomes helples fo set up pzicinq accoada
to its Oun uuy. Soit hus touccept the
Common x0utine picing foamuly witho
ans_chunge it ties o Set u newpzicin
u f e i t ispossible thut its p2oduct muy
be thown OLut fzomthe muaket

(6Eteanul FuctodS

Theze. re_Some extezng fuctozs wheh

also Ciffe.ct the paicin palicy af the fizm,
They ae CS undez

ne.mundelusticity andSupplyvolume of the

pzoduction AcCoding to elusticity, the paice
paice
off the
o the pa0duct is deteamine If the pdoduce
does not_mind the elusticits, und heS e l l s _ -
p2oduct the 3eSult muycomethut his
pa0cduct_muy not be CLcc.eptedby thee
ConSumeZS

d2) ConSumers qeneu puachusinq- powen in the

econo0y ls0 deteamine t h e leve_of theia

puzchusinq Cupac.ity Paricinq should be in

 1evel ucc.oadimq to theis economic 1evel

( 9 Thetaendof fhe qoveanment also uftects

goveanment Heeps un
paiGingpolicy. The
conaodifies
Eye on the paices of essential
contaols the levelof paicinq by impo-
xequlutions. It doess
sing vuaious
sin.q ules und
nof allow fhe fiams to set paicinq taeely

In_Conclusion weCun S y thut paicing

policieS ade - Cilucys flexible cucc.0adinsfo-

chunges cLultuaulL
ineconomicul,
he_C.onstunt
hubituul_und echnologic.ul conditions.Secan
piclnc policies depend upon h e fozeslqht
Of thne pzoduceas+ demund fozecuStinq nd
the qOVEAnment's qttitude tawurds t h e
business Sectoz