MAP (Minimum Advertised Price) monitoring involves keeping track of product prices across digital platforms to identify market fluctuations.

For brands, manufacturers, or suppliers, reputation is paramount. But how does this tie into MAP monitoring? Would a brand's image on e-commerce platforms be compromised if suppliers undercut prices?

Undoubtedly, it would.

Let's delve into the essential aspects of MAP monitoring. But first, let's revisit the concept of the minimum advertised price.

Defining MAP (Minimum Advertised Price)

MAP, or Minimum Advertised Price, denotes the lowest price set by a retailer when selling a manufacturer's product.

For instance, if a manufacturer sets the MAP for cups at $10, retailers intending to sell these cups must adhere to this price in their advertisements. Any deviation would violate the MAP policy.

Establishing MAP agreements ensures consistent pricing standards across various sales channels.

Why Retailers Require MAP Monitoring?

MAP isn't just about pricing; it's about preserving brand integrity and ensuring fair competition.

Common reasons for companies to sign MAP agreements include:

··Maintaining brand reputation

··Ensuring fair competition across all distribution channels

··Assisting smaller manufacturers in competing with larger suppliers

··Ensuring profitability for sellers

··Preventing undercutting

The more diligently brands monitor MAP compliance, the more accountable retailers feel to honor their commitments. Therefore, every CEO should prioritize monitoring MAP violations.

Why Retailers Violate MAP Agreements?

Ideally, retailers should adhere to MAP agreements once they're established. However, in the competitive e-commerce landscape, this isn't always the case.

MAP violations typically occur due to:

··Competitive pressure on e-commerce platforms leading retailers to lower prices

··Supply chain leaks (unauthorized resellers) prompting retailers to reduce product prices

Regardless of the reasons, MAP policy breaches can harm suppliers' interests. Consumers are unlikely to blame retailers for advertising products below the established MAP, instead directing their criticism towards the brand. Such price discrepancies can tarnish brand reputation, necessitating more effort to rebuild trust than tracking MAP compliance.

Principle of MAP Monitoring

Companies can monitor MAP compliance manually or automatically. While manual monitoring is an option, automatic methods offer numerous benefits, such as efficiency and accuracy.

Manual MAP Compliance Checks:

Manual monitoring involves several steps, including:

··Identifying sellers and checking advertised prices

··Warning violators

··Rechecking if violators have adjusted prices

··Following up with non-compliant sellers

··Issuing final warnings

However, manual monitoring, even for a limited number of retailers, can be time-consuming and labor-intensive.

Automatic MAP Monitoring:

Automatic monitoring entails using price tracking software or data extraction tools to collect price data from e-commerce platforms. These tools automate processes like listing sellers and identifying price violations.

Automated monitoring is stable, reliable, and more efficient than manual monitoring, providing faster and more accurate results.

Conclusion
In summary, MAP monitoring is crucial for maintaining positive relationships between brands, manufacturers, authorized distributors, and markets. It helps brands identify unauthorized sales and platforms violating MAP policies.

MAP agreements foster brand reputation, fair competition, and a healthy business environment. Violating MAP agreements can damage brand reputation and confuse consumers.

While some companies opt for manual MAP monitoring, automatic software offers a more efficient solution by swiftly collecting data from major e-commerce platforms.

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