What is Minimum Advertised Price (MAP) monitoring?

Minimum Advertised Price (MAP) monitoring refers to the practice of supervising and ensuring that retail partners adhere to a manufacturer’s stipulated minimum price for advertising their products. This is important for several reasons:

Brand Value Preservation:

It helps in maintaining the brand’s value by preventing retailers from advertising the product at a lower price than what is set by the manufacturer. This ensures that the brand is not perceived as cheap or lower quality.

Fair Competition:

MAP policies aim to create a level playing field among retailers, so that they compete on aspects other than price, such as customer service, product knowledge, and shopping experience.

Maintaining Profit Margins:

By setting a minimum advertised price, manufacturers can help ensure that retailers maintain a certain profit margin. This is beneficial for the manufacturer’s distribution network, keeping retailers profitable and motivated to carry their products.

Compliance and Enforcement:

MAP monitoring involves tracking the advertised prices across various channels, including online retailers, physical stores, and other advertising platforms to ensure compliance. If violations are detected, manufacturers can take action, which might include warnings, penalties, or even ceasing to supply products to the non-compliant retailer.

Market Analysis and Intelligence:

Monitoring also provides valuable data on market trends, pricing strategies by competitors, and retailer compliance levels. This information can inform future pricing strategies and distribution decisions.