Types of product competition in marketing. The essence and concept of competition in marketing. Types of competition by scale of development

Competition refers to the rivalry between individuals, business entities interested in achieving the same goal in any field. The seller selling the product is obliged to capture the attention of buyers and encourage them to purchase the product. Naturally, the consumer properties of goods are assessed by buyers: one of the goods is given preference, and these goods are purchased. The sales process may not take place if the goods produced do not meet the conditions for their sale and are not in demand. Competition is characterized by:

a) the presence of several rivals;
b) the same field of activity;
c) a coinciding goal.

From a marketing perspective, competition is:

1. Functional competition.

It is due to the fact that the need can be satisfied in a variety of ways. All products that satisfy a specific need are functional competitors. A typical example is products that satisfy the needs of spending time on the road (chess, dominoes, books, newspapers, portable tape recorders, etc.). Functional competition is also typical for choosing concert events, visiting museums, theaters, etc.

2. Species competition.

It is a consequence of the fact that there are goods intended for the same purpose, but differing from each other in some significant parameters and, accordingly, having different types (for example, bicycles of different brands, motorcycles, cars).

3. Subject-based (inter-firm) competition.

It arises as a result of the fact that firms produce essentially identical goods that differ only in workmanship (or are identical in quality).

4. Unfair competition is any act of conduct that is contrary to fair rules in industrial and commercial affairs. Subject to prohibition:
- * actions that cause confusion in the relations of competitors;
- * false statements during exercise commercial activities, capable of discrediting industrial or trading activities competitor;
- * statements that, when carrying out commercial activities, may mislead the buyer regarding the nature, method of manufacture, suitability for use, quality of the product;
- * actions related to incorrect or illegal use of industrial property objects. For example, labeling a product as foreign or similar to it trademark, use of someone else's brand name in advertising.

Ignorance and other reasons are not exculpatory circumstances if an act of unfair competition is committed.

Illegal methods are often used in competition. This is slander of competitors' products, release of imitation products with lower quality (China, Hong Kong, Morocco).

Economist Bruce Henderson identified the following patterns of competition:

* if competitors are equally powerful, and their strategies are essentially identical, then the equilibrium in the market is unstable, and conflicts are constant even on unimportant reasons;
* if competitors are equally powerful and their strategies are essentially identical, then the equilibrium in the market is unstable.
* if the differences between firms in trading potential are limited by several critical factors, then a situation is possible when each competitor will find its consumers, while how many competitors can each coexist in their own “professional segment”;
* with one critical factor there are no more than two or three competitors;
* the two-to-one ratio between any two competitors is the equilibrium point when the desire to change the ratio subsides.

A firm's competitors significantly influence its success in entering its target market. There are four possible competitive structures: monopoly, oligopoly, monopolistic competition and pure competition.

In a monopoly, there is only one firm selling a specific product or service. For a particular product or service, the market may be large or small. The elasticity of demand under monopoly conditions depends mainly on the need for the product. A monopolist has complete control over its marketing plan. Once a patent expires, competition increases.

In an oligopoly, there are several firms that account for the bulk of sales of a particular product. For example, more than 90% passenger cars, sold in the USA, are manufactured by General Motors, Ford and Chrysler.

The market is often divided into separate segments. The elasticity of consumer demand is complex: the demand for one firm's products depends on the behavior of others. Since in an oligopoly there are only a few firms that determine trade in a particular product, they are still able to control their marketing plans.

Monopolistic competition occurs when there are several firms offering different structure marketing. In the US this is the most common form of competition. At the same time, each company achieves advantages using its own combination of marketing factors.

Competition persists because firms produce and sell similar products. The size of the market depends on the need for the product. Price control depends on the uniqueness of the product.

Pure competition occurs when there are a large number of firms selling the same products. In the US, such competition is less common and is most common in manufacturing. food products and raw materials.

The market of each company is small: demand is ideally elastic, since an increase in price reduces sales, and a decrease leads to losses. It is easier for new firms to enter the market than in the case of monopolistic competition.

According to methods, competition is divided as follows.

1. Price competition.

It lies in the fact that similar goods differ in price. The way to compete is to reduce prices. This method was typical for the early periods of market development. Price competition can be direct or hidden. In the first case, firms widely notify the public about the reduction in prices for their goods; in the second, they introduce them to the market new product with significantly improved consumer properties, but its price rises slightly.

2. Non-price competition.

It is characterized by the fact that the quality of the product is higher than that of competitors. The product is being improved in the areas of reliability, design, comfort, Special attention while paying attention to the price of consumption.

Marketing methods of company management are essentially non-price methods of competition. Competition, competitors and their strategies are studied using the same methods as markets. All components are important for market success, but the following are especially significant:

1. the main factors of competitiveness of foreign goods;
2. activities in the field of advertising and sales promotion;
3. practice in trademarks goods;
4. attractive side of product packaging;
5. organization of warranty and post-warranty service;
6. sales and its organization;
7. distribution channels.

Any product sold on the market must be considered only as a set, only in unity with other complementary goods and services, otherwise it is practically uncompetitive.

There are many factors that determine the competitiveness of a product. For the modern entrepreneur To survive and prosper, it is necessary to constantly monitor suppliers, customers and other forces that determine competition.

Let's analyze marketing competition using the example of the private unitary enterprise "Universal Bobruisk" of the public organization "BelOG". The goal of the enterprise is the production and sale of competitive products in accordance with market needs. Currently, the company produces about 300 types of products: automobile hoses and mirrors, spare parts, electric cartridges, clothing, and wicker products.

The main competitors of the private unitary enterprise "Universal Bobruisk" for the production and sale of rear-view mirrors are PA "Rotton" (Gomel); hoses high pressure Borisov Plant of Automotive Accessories and Bobruisk Plant of Tractor Parts and Assemblies.

However, the products of the private unitary enterprise "Universal Bobruisk" are the most competitive, because has high quality and low price compared to other manufacturers, so the company is the main supplier of the Minsk Automobile Plant and MTZ PA.

The market remains the same, but the number of companies increases. If it seems to you that you have no competitors in your business and you are earning easy money, then keep in mind that soon your competitors will want to earn it instead of you!

Therefore, competitive marketing is a set of tasks and goals of building a business stronger and better than that of a competitor. The company must build its business and activities in such a way as to outperform its competitors. Your sales should be not just good, but better than your competitors. Personnel are not just loyal, but work to achieve results.

Benefits of using competitive marketing:

The company does not experience stagnation within the organization;
Competitors do not interfere with the company, since they still have to catch up with your company;
You follow market trends and stay ahead of them;
When the enemy is stronger than you, you can easily outplay them through maneuvers marketing moves.
Work with consumers;
Creating an information occasion/eliminating an information attack from competitors.

The main elements of competitive marketing:

♦ Content. Now in the market, the winner is the one who has interesting content and who starts the game first. It is impossible to survive on image and individuality alone. Therefore, you need to constantly remind yourself and maintain your status.

Competitive marketing allows you to stay ahead of your competitors' marketing moves and maintain your own communication model. “Virality” works well in some methods. Such company content will not only be unique, but also be competitive advantage Your company.

You can be sure that the content will work for you even on the verge of a foul, and this is when the company cannot be silent! Interesting content + marketing “tricks” will help you maintain your image and not remain in the shadow of your competitors.

♦ Work with consumers. Competitive marketing helps build relationships with consumers based on requests target audience. In addition, work with consumers is aimed at gaining loyalty and commitment to the company's products. In other words, you create a unique selling proposition that makes your company stronger than its competitor.

For example, 2 establishments were opened in one city fast food. Since they were located close to each other, they were the same for the target audience, which created approximately equal income for both companies. One company decided to change the situation through competitive marketing. They seriously engaged in competitive intelligence, learned everything about the company, products, services, conducted a consumer survey and made adjustments to the service system. We found out that customers were most annoyed by the huge queues.

They did everything better than their competitor - they expanded the size of the premises, introduced the same service standards and provided fast service. Profits began to increase. The cafe next door eventually closed. And so the huge global corporation of the fast food chain McDonald’s appeared.

♦ Creating an information occasion/eliminating an information attack from competitors. Competitive marketing allows you to always be prepared for turns of events not in your favor. Your main competitors may create “pseudo-news” to distort the real situation or “tarnish” your image. It is possible to neutralize all this and develop a “fork of events”, how the situation will develop further and what needs to be done. Competitive marketing is a kind of combination of proactive marketing moves.

IN modern world business, each company follows the principles of marketing: “Study the needs of customers and make decisions on how to give what the client needs.” If a company wants to be a winner, it must focus on its competitors. It must be able to avoid clashes with strong companies and be able to strike at their weak points.

The most common market segmentation methods are

groupings according to one or more characteristics and methods of multivariate statistical analysis. Grouping method consists of sequentially dividing a set of objects into groups according to the most significant characteristics.

By successive splits into two parts, the sample is divided into a number of subgroups.

A certain characteristic is singled out as a system-forming criterion (the owner of the product, the consumer intending to purchase the product), then subgroups are formed in which the significance of this criterion is much higher than for the entire set of potential consumers of this product.

Choosing a market coverage strategy.

When choosing a market coverage strategy, you need to consider the following factors: Firm resources.

When resources are limited, a concentrated marketing strategy turns out to be the most rational. Degree of product homogeneity.

The undifferentiated marketing strategy is suitable for uniform products. For products that may differ from each other in design, such as cameras, cars, differentiated or concentrated marketing strategies are more suitable. Stages life cycle goods.

When a company enters the market with a new product, it is advisable to offer only one version of the new product. In this case, it is most reasonable to use undifferentiated or concentrated marketing strategies. Degree of market homogeneity.

If buyers have the same tastes, purchase the same quantities of goods at the same periods of time, and respond in the same way to the same marketing stimuli, it is appropriate to use an undifferentiated marketing strategy. Marketing strategies of competitors.

If competitors are engaged in market segmentation, pursuing an undifferentiated marketing strategy can be disastrous. Conversely, if competitors use undifferentiated marketing, the firm will benefit from using a differentiated or concentrated marketing strategy.

Homework - answer the questions:

What is market segmentation?

Types of marketing, depending on three options for market coverage?

Lecture “Competition and its types” Competitors - these are the subjects of the marketing system who, through their actions, influence the company’s choice of markets, suppliers, intermediaries, the formation of an assortment of goods and the entire complex of marketing activities (which entails the need to study them). These are companies that have a completely or partially coinciding fundamental niche - a set of market segments for which the product and/or service produced by a given company is suitable. The presence of competing firms gives rise to such a phenomenon in the economy as competition. From an economic point of view, competition- the economic process of interaction, the relationship between the struggle of producers and suppliers in the sale of products, competition between individual producers or suppliers of goods and/or services for the most favorable production conditions, this is competition between individuals and business units interested in achieving the same goal. Market competition is the struggle of firms for the limited volume of effective consumer demand, waged by firms in the market segments available to them. From a marketing point of view, competition concerns only the struggle that firms wage when promoting their goods and/or services to the market; competition is conducted for a limited amount of effective demand.It is the limited demand that forces firms to compete with each other. After all, if demand is satisfied by the product and/or service of one company, then all others are automatically deprived of the opportunity to sell their products. And in those rare cases when demand is practically unlimited, the relationship between firms offering similar products is often more like cooperation than competition. This situation, for example, was observed at the very beginning of reforms in Russia, when the small quantities of goods that began to arrive from the West were faced with an almost insatiable domestic demand.

Market competition develops only in accessible market segments. Therefore, one of the common techniques that firms resort to in order to ease the pressure of competitive pressure on themselves is to enter market segments that are inaccessible to others.

Characteristics of the main types of competition in marketing

Type of competition	Characteristic
Functional	Competition technical means designed to perform the same function (moving goods, transporting people)
Species	Competition of goods intended for the same purpose, but differing in parameters (automotive and tractor with different engine power)
Subject	Competition of identical products
Price	Used to penetrate the market with new products. Direct price competition - notification of price reductions for manufactured and marketed goods (by 20-60%). Hidden price competition - the introduction of a new product with improved consumer properties, and the increase in price is not proportional to the increase in properties, but is slightly lower
Non-price	Providing the buyer with more services, reducing delivery times, reducing energy intensity, crediting returned goods
Unscrupulous	Selling goods at prices below the nominal level, industrial espionage, poaching specialists who hold secrets, releasing counterfeit goods, using someone else's trademarks, spreading false information about competitors.
Creative	Aimed at establishing cooperation between competitors in the field of production and marketing

In the modern world, price competition has lost such importance in favor of non-price methods of competition. This does not mean, of course, that “price war” is not used in the modern market; it exists, but not always in an explicit form. The fact is that the "price war in open form is possible only until the company exhausts its reserves for reducing the cost of goods. In general, competition in an open form leads to a decrease in the rate of profit, a deterioration in the financial condition of firms and, as a consequence, to ruin. Therefore, firms avoid conducting price competition in an open form. Price competition is currently used usually in the following cases:

Outsider firms in their fight against monopolies, with which outsiders have neither the strength nor the ability to compete with them in the sphere of non-price competition;

To penetrate markets with new products;

To strengthen positions in the event of a sudden aggravation of the sales problem.

With hidden price competition, firms introduce a new product with significantly improved consumer properties, and raise the price disproportionately little.

Non-price competition brings to the fore the higher consumer value of a product than its competitors (firms produce goods of higher quality, more reliable, provide a lower consumption price, and have a more modern design).

Illegal methods of non-price competition include:

Industrial espionage;

Poaching specialists who know production secrets;

The release of counterfeit goods that are no different in appearance from genuine products, but are significantly inferior in quality, and therefore are usually 50% cheaper;

Purchasing samples for the purpose of copying them.

The following main areas of competitive activity of the company can be distinguished:

1) Competition in the field of raw materials markets for gaining positions in resource markets in order to provide production with the necessary material resources, advanced materials, highly qualified specialists, modern equipment and technology in order to ensure higher labor productivity than competitors.

The competitors of an enterprise in the commodity markets are mainly manufacturers of analogous products that use similar material resources, technology, and labor resources in their production;

2) Competition in the field of sales of goods and/or services on the market;

3) Competition between buyers in sales markets.

Depending on the intensity of competition in this environment, the company predicts prices for certain goods and organizes its sales activities.

In a saturated market, competition among buyers gives way to competition among sellers. In this regard, among these three areas of competitive activity of the company, the greatest interest, from a marketing point of view, is the competition of sellers in the field of sales of goods and/or services on the market. The remaining two areas are buyer competition.

Since competition in marketing is usually considered in relation to the consumer, different types of competition correspond to certain stages of consumer choice. In accordance with the stages of consumer decision-making about a purchase, the following types of competition can be distinguished:

1) competing desires.

This type of competition is due to the fact that there are many alternative ways for consumers to invest money;

2) functional competition.

This type of competition is due to the fact that the same need can be satisfied in different ways (there are alternative ways to satisfy the need).

This a basic level of studying competition in marketing.

3) inter-firm competition.

This is a competition between alternatives to the dominant and most effective ways of satisfying a need.

4) inter-product competition.

This is competition between a company's products. It is not competition in essence, but is a special case product range, which aims to create a simulation of consumer choice.

Types of competitive situations in the market

Homework:

List the main types of competition in marketing

What is illegal competition?

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15. Types of competition

There are the following types of competition.

1. Perfect (or free): many independent firms participate in the market, independently deciding what to produce and in what volume.

1) the volume of production of an individual company is insignificant and does not have a significant impact on the price of the product;

2) the goods are homogeneous;

3) buyers are well informed about prices;

4) sellers are independent of each other;

5) the market is not limited, i.e. free access is possible for anyone who wants to become an entrepreneur.

Perfect competition forms a market mechanism for setting prices and self-adjusting the economic system.

This type of competition has only theoretical significance, although it is the key to understanding more real market structures. This is its value.

2. Imperfect: this type appeared in connection with the formation of monopolies. And is characterized by the concentration of capital, the emergence of various organizational forms enterprises, strengthening control over natural, material and financial resources, as well as the impact of the scientific and technological process.

The subspecies are: monopoly and omegopoly. A monopoly is an exclusive right of production owned by one person, group of people or the state.

There are: natural (legal) and artificial, as well as pure and absolute.

Monopolistic firms create barriers to entry for new firms; limit access to sources of raw materials and energy resources; use a high level of technology; use larger capital, etc.

Artificial monopolies form a number of specific forms - cartel, syndicate, trust, concern.

An oligopoly is the existence of a few firms, usually large ones, that account for the bulk of an industry's sales.

Penetration of new firms into the market is difficult due to high capital costs.

Pricing is an artificial reduction in prices for goods. Price discrimination is widely used here certain conditions: monopolist seller; presence of strong marketing policy at the company; impossibility of reselling the goods from the original buyer. This type of competition is especially often used in the service sector.

Non-price competition is carried out by improving the quality of products and the conditions of their sale.

Non-price competition can be carried out in two directions.

1. Product competition.

2. Competition in terms of sales.

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2.4. Types of unfair competition Unfair competition manifests itself in the form of economic suppression, industrial espionage and physical suppression.1) Economic suppression: Failure of transactions and other agreements; Termination of competitors' activities

The key role of competition for the functioning of a market economy was summarized back in the 17th century by Adam Smith in his famous “invisible hand” principle.

Competition is understood as rivalry between individuals, business units in any field, interested in achieving the same goal.

Stages of research into the activities of competing enterprises:

Identification of current and potential competitors;
Analysis of performance indicators, goals and strategies of competitors;
Identifying the strengths and weaknesses of competitors.

Main groups of competitors:

Firms offering a similar type of product in the same markets;
Firms serving other markets with similar products whose entry into this market is probable;
Firms producing substitute products that can displace a given product on the market.

Types of competition:

Functional competition - satisfying the same need in different ways;
Specific competition - the production of similar goods by different enterprises or by the same one, but with different designs;
Subject competition - the production of identical goods that differ only in the quality of workmanship (identical in quality);
Price competition – based on price reduction;
Non-price competition – based on non-price methods: provision more services, selling higher quality goods.

Competition strategies:

1. Active strategy includes:

Market expansion strategy - used to increase demand for a product by demonstrating the merits of product categories, searching for new uses for the product;
Market share defense strategy - leaders protect their share by outperforming competitors in advertising costs and ensuring wide distribution of their products;
Proactive strategy – anticipates the entry of competitors into the market and prevents it.

2. The response strategy includes:

Frontal strategy – a challenge to the market leader and the desire to become a market leader;
Flanking strategy is a challenge to the leader in areas that are this moment are not subject to competition;
The encirclement strategy is a challenge to the leader on all fronts at once, at short intervals;
The strategy of following a leader is copying his actions.

3. Avoidance (evasion) strategies include:

Niche strategy – searching for markets that are too specialized;
A strategy to bypass competitors - using non-competitive products or entering non-competitive markets;
The “status quo” strategy involves refusing to participate in competition.

Competitive advantage is the position of an enterprise in the market, which allows it to overcome the forces of competition and attract buyers.

Factors contributing to maintaining a competitive advantage:

1. What is the source of advantage:

Advantages of low rank - cheap labor or raw materials;
Advantages of a higher rank - patented technology, differentiation based on unique goods (services), reputation;

2. The number of obvious sources of competitive production available to the enterprise;

3. Constant modernization of production and other activities.