“Only the market leader should consider playing defense.” Jack Trout wrote these words in his famous book many years ago and they still make sense. Today, the laws of competition are very fierce, they lead to ruin, loss of property, sources of income of weak subjects of a market economy, but it rewards the strongest competitive producers. The stronger the competition among manufacturers, the greater the offered goods on their part exceed the existing demand of customers.
For marketing, the main point of the competition is reduced to competition, to the struggle for a potentially leading (different from other companies) market position. Competition is both a factor and a consequence of the marketing activities of various companies: competition forces them to create marketing services in companies; in their attempts to influence the market, they intensify competition, which, in turn, activates brand marketing.
Three types of competition in marketing research
• functional – any need can be satisfied in different ways, the products that provide this satisfaction are functional competitors;
• generic – appears in connection with the availability of goods that are intended to satisfy one need, but differ in any essential parameters;
• substantive – arising since different companies produce almost identical products, which differ slightly.
The strategies chosen by companies differ in terms of their behavior in competition. Competitive strategies are geared toward providing long-term company benefits.
Stay one step ahead of them
Describe how your products differ from similar products already offered by your competitors. Trade shows are a great way to research your competitors’ products.
Explain the impact of each of your competitors on the target market. Show the percentage of market coverage and the ratio of their market share compared to yours. Perhaps they have a larger or smaller client base than your company has.
An attractive competitive position
It stems from the possession of a competitive advantage within certain capabilities, including, for example, the creation of a new product (service) and the choice of serviced consumer segments, the geographical location of the enterprise, the degree of vertical integration and diversification, the orientation towards which or their choice is central to the strategy. In turn, the choice of opportunity can affect the structure of the industry.