Types of competition. The essence and concept of competition in marketing Advantages of using competitive marketing

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 wishes to become an entrepreneur.

Perfect competition creates market mechanism price formation and self-adjustment of the economic system.

This type of competition is only theoretical, although it is key to understanding more realistic market structures. This is its value.

2. Imperfect: this type appeared in connection with the formation of monopolies. And it is characterized by the concentration of capital, the emergence of various organizational forms of enterprises, increased 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 persons 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 under certain conditions: the seller is a monopolist; the company has a strong marketing policy; impossibility of reselling the goods from the original buyer. This type 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 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: When resources are limited, the 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, 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). Competing firms 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 this 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 of 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 foreign trademarks, spreading false information about competitors.

Creative

Aimed at establishing cooperation between competitors in the field of production and marketing

IN 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 “an open price war is possible only until the company exhausts its reserves for reducing the cost of goods. In general, open competition leads to a decrease in the rate of profit, deterioration financial condition firms and, as a result, 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 new product with significantly improved consumer properties, and the price is raised 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 different ways(there are alternative ways to satisfy the need).

This is 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 satisfy the need.

4) inter-product competition.

This is competition between a company's products. It is not competition in essence, but is a special case of an assortment range, the purpose of which is to create an imitation 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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Types of competition in the marketing system.

The essence of a market economy is competition. In order to survive and succeed, businesses must know their competitors and their successes, especially when it comes to key criteria. Since competitors directly and indirectly influence the sales of products and the profit of the enterprise, it is necessary to carefully study them during the market analysis.

Under competition

is understood as competition between individuals, economic units interested in achieving the same goal in any field.

When identifying competition, the determining factors are 5

questions

1. Who is the competitor.

2. What is their strategy.

3. What are their strengths and weaknesses.

4. What is the way they react to changes in external conditions.

5. What are their goals.

Can be determined 4 levels

competition:

1. The company evaluates those who offer a similar product in the same price zone.

2. The enterprise extends the definition of a competitor to all sellers of the same product.

3. The enterprise extends the definition of a competitor to all firms that satisfy the same need.

4. The enterprise includes among its competitors enterprises that sell goods of the same purpose.

The seller selling the product is obliged to capture the attention of buyers and encourage them to purchase the product. Naturally, consumers evaluate the consumer properties of goods: one of these 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. So, competition is characterized by:

1. The presence of several rivals.

2. The same field of activity.

3. Coincident target.

From a marketing perspective, there are 3 types of competition:

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 are goods that satisfy the needs of spending time on the road (chess, books, cards, etc.). Functional competition is also typical for choosing concert events, visiting museums, 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 (inter-firm) competition arises when firms produce essentially identical goods that differ only in workmanship (or are identical in quality).

Control over competitors makes it possible to satisfy the specific needs of the buyer and consumer earlier and better than other companies. Knowing the strengths and weaknesses of competitors, you can assess their potential and goals, present and future strategies. This will allow the company to strategically focus its attention on the area where the competitor is weaker. This way you can expand your own advantages in competition.

Competition analysis is an important area of ​​marketing research aimed at clarifying the issues of market attractiveness and is used to develop a company's strategy in the field of production and sales. Demand analysis can show that the company has almost all key factors for successful sales, however, competition makes significant adjustments to the balance of power.

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Marketing is the process of planning and executing the design, pricing, promotion and implementation of ideas, goods and services through exchanges that satisfy the goals of individuals and organizations.

The main elements of the concept of marketing are: -product (characteristics of an object being brought to the market); -price (reflects the commercial interaction of the manufacturer, competitors, buyer of the product); -promotion (reflects the relationship between the manufacturer and buyers); - distribution (product flow, processes of transfer of ownership of goods).

In the marketing system, a company operating in the market is considered not on its own, but taking into account the entire set of relationships and information flows connecting it with other market entities. Conditions environment in which the company operates is usually called marketing environment of the company. Marketing environment The firm is made up of a microenvironment and a macroenvironment.

Microenvironment represented by forces directly related to the company itself and its ability to serve clients, i.e. suppliers, marketing intermediaries, clients, competitors and contact audiences.

Thus, competitors are an important component of the company’s marketing microenvironment, without taking into account and studying which it is impossible to develop an acceptable strategy and tactics for the company’s functioning in the market.

The definition of competition given in the Law of the Russian Federation "On competition": this is the competitiveness of economic entities, when their independent actions effectively limit the ability of each of them to unilaterally influence General terms circulation of goods on the relevant commodity market.

Competition acts as a spontaneous regulator of social production. The consequence of competition is, on the one hand, the aggravation of production and market relations, and on the other, an increase in efficiency economic activity, acceleration of scientific and technological progress. Competition refers to uncontrollable factors that affect the activities of an organization that cannot be directly controlled by the organization.

The main legislative act regulating competitive relations in the Russian Federation is the Law of the Russian Federation dated March 22, 1991 ( latest edition dated 05.25.95), the purpose of which is to determine the organizational and legal basis for preventing, limiting and suppressing monopolistic activities and unfair competition and thereby ensuring conditions for the creation and effective functioning of commodity markets.

Need for Marketing Study competition exists to a greater or lesser extent in all groups of firms.

Marketing research of the company- systematic collection, analysis and reflection of data necessary to solve tactical and strategic problems facing the company in a particular market under certain conditions.

The main task marketing research the external commercial environment and the internal activities of the enterprise itself is the answer to the question of what measures the company should take to gain or maintain its own competitiveness. To do this, the company must know about its capabilities (strengths and weaknesses) and about the strengths and weaknesses of competitors. Thus, the question of the competitiveness of a company and methods of achieving it is fundamental within the framework of marketing research firm in general and marketing research competition in the market in particular.

Competition classification

For an objective analysis of the interaction of rival firms in the market, it is necessary to identify the forms of competition they have chosen from those listed below.

Active competition is a form of competition in which targeted actions are used, powerful pressure with one goal - to defeat a competitor.

Passive competition involves focusing efforts on a careful, professional study of the competitor’s position in the market.

Focused competition is a form that involves carrying out preliminary work before directly entering the competition.

Chaotic competition happens when the opponent is not prepared to fight.

Temporary competition occurs from time to time, usually under the influence of seasonal patterns of demand or weather conditions.

Constant-- never-ending competition. However, the intensity of rivalry may vary. With this form of competition, a distinction is made between an activity phase, a waiting phase, a resting phase, a collision phase, and others.

Real competition is a form that is caused by actual events and actions taking place in the market.

Imaginary same - competition, in which there is an imitation of any actions without taking real, practical steps in the direction of potential competitors.

Price(financial) competition is a form of competition in which mainly cost instruments of pressure on a competitor are used: price, interest, salary, commission, taxes, exchange rates, penalties, rent and a number of others. This form of competition most significantly affects supply and demand, the behavior of customers when consuming services or goods, and relationships with regular business partners.

Non-price-- a form of competition associated with undermining business relationships and established connections of a rival company, exerting a significant influence on the management of this company in the course of decision-making and discrediting a competitor.

In modern world price competition has lost such importance in favor non-price methods of competition. This does not mean, of course, that modern market“price war” is not used; it exists, but not always in an explicit form. The fact is that an open “price war” 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. It is currently usually used in the following cases:

  • - outsider firms in their fight against monopolies, with which outsiders have neither the strength nor the opportunity 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.
  • -At hidden price competition, firms introduce a new product with significantly improved consumer properties, and raise the price disproportionately little.

To the number non-price methods include all marketing methods company management.

  • - Monoprofile(single-type) competition occurs only for one type of service or product.
  • - Polyprofile, respectively, for several goods or services, for several areas of activity.
  • - Intra-industry(intra-group) competition is a form that manifests itself primarily within one industry, or between members of the same group, union, association or association.
  • - Intersectoral(intergroup) - a form of competition that manifests itself between sectors of the economy, economic entities as representatives of different industries.
  • - Interregional-- within several. Companies can compete in their own or foreign regions; on neutral territory; in a region where competitors’ interests are present or absent; in a region where the interests of competitors are different or even opposing1

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 is 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 of an assortment range, the purpose of which is to create an imitation of consumer choice.

In economic literature there is also the concept effective competition. To be effective, a competitive system must be open and free, and its participants must be comparable.

There are four possible competitive structures that determine market structures: pure competition, monopolistic competition, oligopoly, pure monopoly.

Competition within the law-- a form of competition carried out without violating current legislation: criminal, administrative, financial, civil and other.

Total competition, on the contrary, involves the use of all available means, including methods that go beyond the law: espionage, various frauds and other criminal acts.

So far we have been talking about conducting competition within the framework of the law and ethical standards. However, there is also unfair competition. These methods include: dumping, establishing control over the activities of a competitor in order to stop this activity; abuse of dominant market position; imposing discriminatory prices or commercial terms; establishing the dependence of the supply of specific goods or services on the adoption of restrictions on the production or distribution of competing goods; collusion in tenders and the creation of secret cartels; dissemination of false information and advertising; borrowing trademarks, copying (imitation) of competitors' products; violations of quality, standards and conditions of supply of goods and services.

TO illegal methods non-price competition include:

Industrial espionage; - poaching specialists who know production secrets; - production of counterfeit goods, outwardly no different from genuine products, but significantly worse in quality, and therefore usually 50% cheaper; -purchase of samples for the purpose of copying them.


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 wishes to become an entrepreneur.


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


This type of competition is only theoretical, although it is key to understanding more realistic market structures. This is its value.


2. Imperfect: this type appeared in connection with the formation of monopolies. And it is characterized by the concentration of capital, the emergence of various organizational forms of enterprises, increased 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 persons 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 under certain conditions: the seller is a monopolist; the company has a strong marketing policy; 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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