June 15, 2023
At its core, MAP Monitoring is a way to track pricing data across various resellers and online marketplaces, thereby ensuring that the minimum advertised pricing (MAP) policies are adhered to, thus protecting brand value.
MAP price monitoring, or Minimum Advertised Price monitoring, has become a critical element in the pricing strategy for manufacturers and retailers alike. It is a way to track pricing data across various resellers and online marketplaces, thereby ensuring that the minimum advertised pricing (MAP) policies are adhered to, thus protecting brand value.
MAP monitoring always involves using a certain price monitoring software, sometimes known as a price monitoring tool or MAP monitoring tool, to automatically monitor and enforce these pricing guidelines.
Minimum Advertised Price or MAP is the lowest price that a retailer can advertise a product for sale, as set by the manufacturer. Not to be confused with the lowest selling price, the MAP merely restricts the advertised price. MAP price monitoring, therefore, is the process of observing and tracking these prices across various platforms and ensuring adherence to the MAP policy. Map monitoring tools are often employed to automate this process and effectively manage the enormous amount of pricing data. The purpose is two-fold: to preserve a product’s perceived value and to maintain fair competition among retailers.
At the heart of MAP price monitoring is price monitoring software. This automated MAP tracking tool is capable of scanning thousands of websites and retail platforms, observing any changes in product prices. When the software detects a price that falls below the predetermined MAP, it reports a MAP violation. The details of the violation, including the specific retailer or reseller involved, are then sent to the appropriate parties for map enforcement action.
Maintaining the MAP helps to keep a product’s value perception high. Price violations can harm a brand’s image and its relationships with retailers and resellers. MAP monitoring aids in preventing this from happening by keeping a check on the product prices advertised online.
MAP monitoring can be an extensive process when done manually, given the number of resellers and online marketplaces involved. Automated MAP monitoring software simplifies this process by continuously checking for MAP violations and generating comprehensive reports.
By enforcing the MAP, manufacturers can ensure a level playing field for all retailers. No retailer can gain an undue advantage by advertising a lower price, which can disrupt market dynamics.
MAP monitoring tools can identify specific retailers or resellers who violate MAP policies. With this information, manufacturers can take action, including warning the violators or even terminating partnerships.
While MAP policies are legal in many jurisdictions, they can be a grey area in some regions. Therefore, it’s essential to understand the legal landscape before implementing a MAP policy and using a MAP monitoring tool. In most cases, brands can safely monitor prices but not ENFORCE MAP pricing. However, even if you can’t enforce your sellers to stick to your policies, knowing who sells your product, where and at what price can be of a considerable help, as it makes your relationships with the partnership network much more transparent and healthy. You can always use this knowledge in future, when calculating your B2B prices.
Apart from tracking prices, MAP monitoring tools can provide useful insights into market trends, competitive analysis, and consumer behaviour. This data can be leveraged to make informed business decisions. Hopefully, we managed to explain how MAP price monitoring works and what you can do as a brand to improve your control over your distribution network.
Hopefully, we managed to explain how MAP price monitoring works and what you can do as a brand to improve your control over your distribution network.
With years of experience in sales and revenue management, Alec makes significant contributions to Aimondo's Knowledge Hub. He covers topics related to competitive strategies, competitive pricing, and strategic approaches to revenue growth
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