MAP

MAP is the acronym for Minimum Advertised Price.

Minimum Advertised Price

Refers to the lowest price a retailer is allowed to advertise a product for sale, as set by the manufacturer or supplier. MAP policies are typically established by brands to maintain price consistency across different sales channels, protect their brand image, and prevent price wars among retailers. MAP is crucial in retail for several reasons:

Brand Value Protection: By setting a MAP, manufacturers can preserve the perceived value of their products. Consistent pricing helps maintain a premium image, especially for luxury or high-value items.
Retailer Margin Protection: Retailers benefit from MAP policies because they ensure a level playing field. It prevents competitors from advertising the same products at significantly lower prices, which could potentially undermine profits.
Consumer Confidence: Consistent pricing across different retailers can enhance consumer trust in both the product and the retail brand. It reduces confusion caused by varying prices for the same item.
Compliance and Relationship: Retailers who adhere to MAP policies are more likely to maintain good relationships with their suppliers. Violating MAP can lead to penalties or loss of the right to sell the brand’s products.

However, it’s important to note that MAP only restricts advertised prices, not the actual selling price. Retailers can often sell products at lower prices than the MAP, as long as these prices are not advertised or publicly displayed. In sales and marketing, understanding and complying with MAP policies is important to ensure good relationships with suppliers and maintain a strong brand image in the market.