One of the strongest factors influencing the dynamic development of the tourism industry is the competition between firms for the best product, for attracting customers, and so on.
Competition - rivalry, competition between commodity producers in the market for more favorable conditions for the production and sale of goods in order to obtain on this basis the maximum possible profit.
Competition (from the Latin concurrentia - to collide) means rivalry in any field between separate legal or individuals(competitors) interested in achieving the same goal. From point of view economic organization such a goal is to maximize profits as a result of legal action to win consumer preferences. It is not for nothing that they say that competition is the most effective mechanism for automatically regulating the proportions of social production, since it systematically forces the producer to reduce individual production costs to save resources, to achieve the most rational combination of the factors of production used.
The reasons (factors) that determine the superiority of one organization of the hotel and tourism industry over another can be very diverse. But it is customary to single out price and non-price factors as the main ones, as well as the types of competition corresponding to them. tourist product or hotel service
Price competition is a form of competition based on a lower price (cost) of the offered tourism product or hotel service. In price competition, sellers move along the demand curve by raising or lowering the price. It is a fairly flexible marketing tool because prices can be changed quickly and easily, taking into account the factors of demand, costs and competition. However, of all the controlled variables of marketing, this is the easiest for competitors to duplicate, which can lead to a copying strategy and even a price war. Distinguish between direct price competition, when there is widespread open advertising of price reductions for tourism products (services) produced and available on the market; as well as latent price competition, in which a new tourism product (service) with significantly improved consumer properties the price rises.
Here you can name such methods as "price leader", "following in the fairway", "attack", "skimming", "implementation".
At the same time, one should take into account the danger of using some of the listed methods of price competition in the tourism market for a number of important and objective reasons:
- - price in tourism business in many cases, it is one of the factors of assessment when buying (due to the territorial disunity of the consumer and the manufacturer and the absence of most of the other parameters of the product);
- - in tourism, there is a special commitment of the consumer of a tourist product to famous brands when the price no longer plays a major role in the purchase;
- - hard-to-change prices in travel agencies due to the impossibility of influencing the cost of the tour (prices of service providers);
- - the tourism market is characterized by a general inelasticity of demand, which is influenced by some of the above reasons.
Non-price competition is a form of competition that is based on factors that are indirectly related or not at all dependent on price; the decisive role in this is played by the quality of tourism products, their novelty, design, corporate identity, subsequent service, off-market methods of influencing the consumer. In non-price competition, sellers shift consumer demand curves to emphasize the distinguishing features of their products. This will call firms to increase sales at a given price or sell the original quantity at a higher price. In the tourism market, the main competition is currently conducted precisely in non-price terms at the level of competition in the quality of tourist service.
The main directions of non-price competition:
- 1.differentiation and segmentation of the tourist market;
- 2.specialization tourist enterprises and programs;
- 3. strict adherence to service standards;
- 4. raising the standards in service;
- 5. variety of tourist services;
- 6. uniqueness of the offer;
- 7. taking into account the psychological characteristics of consumers in the service.
The current situation in the competition policy of the SCC organizations is characterized by the following catch phrase: "Tourist service consists of very important little things." And the better all these "little things" are taken into account when serving tourists, the more fully the needs of the tourist (even if they are not fully realized by them) are taken into account, the better the service, the more chances for such an organization of the State Customs Committee to withstand the competition with similar organizations.
Enterprise competitiveness. A system of measures to improve competitiveness.
The concept of “competition” is inextricably linked to the concept of “competitiveness” of the organization of the State Customs Committee, the tourist product (hotel service), the tourism industry, and the national economy.
The competitiveness of the SCC organization is the ability to withstand and successfully compete in the hotel and tourism market. This concept is relative, it can be identified only on the basis of a comparison of a number of objects in the hotel and tourism sector; its comparative competitive advantages are determined in relation to other SCC organizations operating in this market. Therefore, strictly speaking, it is not the competitiveness of the organization of the hotel and tourism sector that is assessed, but the degree of competitiveness, which depends on the object of comparison. The object of comparison changes, the degree of competitiveness changes accordingly. For example, some domestic organizations in the hotel and tourism sector can be quite competitive in domestic market hotel and tourism business and not be so in the foreign market.
According to the general competitive matrix of M. Porter, the competitive advantage of the organization of the State Customs Committee in the market of the hotel and tourism business can be ensured by three main directions:
- -product leadership;
- -price leadership;
- - niche leadership.
The essence of the proposed concept is to determine the degree of dependence on the competitive components of the organization of the hotel and tourism business and the degree of its superiority.
Competition is competition, competition in the market between producers of goods and services for market share, maximizing profits or achieving other specific goals. In addition to competition between producers (sellers), there is also competition between consumers (buyers) of goods and services.
Competition is determined by the following prerequisites:
Competitors cannot set the market price, they can only adapt to it;
Every business does not view competitors as a threat to its market share;
No competitor is able to influence the decisions made by other participants;
Information on prices, product quantities, production technology and probable profits is available to any enterprise;
Entering and exiting the market is free in the long run.
There are several types of competition in marketing. An entrepreneur must be able to choose the type of competition required at the moment and be able to combine its types if necessary.
Functional competition is any need that can be met in different ways. Consequently, the goods with the help of which satisfaction is possible are competitors to each other. Functional competition can arise even in the production of unique products.
Subject competition - arises because manufacturers create practically the same goods, differing only in quality, and often the same in quality.
Species competition is the result of the fact that there are goods serving the same need, but differing from each other in some essential characteristics.
Price competition is competition by reducing prices to a lower level relative to competitors. At the same time, due to the improvement from the point of view of the consumer, the price / quality ratio increases the competitiveness of the product in the market. Depending on the reaction of other market participants (whether they will respond with an adequate price reduction or not), either the company increases its sales, attracting some of their consumers to its product, or the average profitability (and hence the investment attractiveness) of the industry decreases.
Marketing strategy - setting goals, achieving them and solving the problems of the manufacturing enterprise for each a separate product, for each individual market for a certain period. The strategy is formed in order to implement production and commercial activities in full accordance with the market situation and the capabilities of the enterprise.
Marketing strategies are a way of acting to achieve your marketing goals.
There are marketing strategies developed by an enterprise at three levels:
Corporate;
Functional;
Instrumental.
Strategic marketing is consistent with corporate and functional level strategies.
Corporate marketing strategies define the way a company interacts with the market it serves. They harmonize market requirements with the company's potential and are aimed at creating new areas of activity, the company's growth in the market, more complete customer satisfaction, etc. Corporate Marketing Strategies Define Directions effective use resources of the company to meet the needs of the market.
Corporate Marketing Strategies:
1. Portfolio strategies allow you to effectively solve the issues of investment in various areas of enterprise activities.
Choice-based company management promising goods(market development directions) is carried out using matrices.
As you know, the strategic matrix in marketing is a spatial model that reflects the position of a firm in the market, depending on the combinations of the action of two (or more) factors.
The matrix is a particular manifestation of the general portfolio approach and allows you to effectively manage various groups of company products.
2. Growth strategies make it possible to answer the questions in which direction the enterprise should develop in order to better meet the market requirements, as well as whether its own resources are sufficient for this or whether it is necessary to go for external acquisitions and diversify its activities.
The growth of an enterprise is a manifestation of the types of its business activity.
Business activity can be based on three opportunities or types of growth:
Organic growth, i.e. intensive development at the expense of our own resources.
Acquisition of other businesses or integrated development (including vertical and horizontal integration);
Diversification - moving into other areas of activity.
3. Competitive strategies determine how it is possible to provide an enterprise with a competitive advantage in the market in terms of attracting potential consumers and what policy to choose in relation to competitors.
Depending on the role a company plays in the market (or market share), it can be categorized into one of four: leader, lead contender, follower, and niche dweller.
Functional Marketing Strategies - These are the main marketing strategies that allow an enterprise to select target markets and develop a set of marketing efforts specifically for them.
There are three areas of marketing strategies at the functional level:
1. Segmentation strategies.
2. Positioning strategies.
3. The strategies of the complex.
1. Segmentation strategies I help the company to select the most attractive target market segments to meet the needs of these segments in the best possible way (with the maximum profit for the company).
2. Positioning strategies make it possible to find an attractive position of the company's products in the selected market segment relative to competitors' products in the eyes of potential consumers.
3. Marketing complex strategies are formed by marketing - a mix that provides the company with a solution to the tasks of increasing sales, achieving a certain market share and forming a positive attitude of consumers towards the company's products in the selected segment.
Instrumental marketing strategies allow an enterprise to choose how to best use individual components in the marketing mix to improve the effectiveness of marketing efforts in the target market.
Accordingly, four groups of marketing strategies can be represented at the instrumental level:
1. Commodity strategy determines the position of each type of product or combination of products in relation to competitors, which implies the choice of quality, price and prospects for the supply of goods
2. Pricing strategies allow you to convey information about the value of the product to consumers.
3. Distribution strategies make it possible to organize for consumers the availability of enterprise goods "at the right time and the right place."
4. Promotion strategies convey to consumers information about the useful properties of all elements of the marketing mix.
Marketing strategy is part of an organizational strategy. It is the consistent activity of the company in certain market conditions, which determines the forms of using marketing in obtaining an effective result.
For each marketing strategy the executive plan is very important. The idea of impact in planning was defined by strategic understanding in the implementation of the company's work.
Marketing planning can serve as part of marketing activities and is an ongoing systematic analysis of market demand. It ensures the creation of products necessary for certain consumer groups. The functions of a marketing strategy are to identify existing or potential product markets.
You can highlight the main marketing strategies that are aimed at achieving specific goals and determining the best positions of companies.
In the marketing activities of the company are distinguished:
The strategy of entering the consumer market. It is recommended to use this strategy when a company sells an already known product to the market. It is effective in case of market growth or insufficient saturation with goods and is aimed at increasing sales through advertising intensity, various stimulating forms of product sales.
Product creation strategy is effective when new products are introduced. This strategy prefers traditional sales methods using supportive marketing efforts.
A market expansion strategy is effective in identifying market areas with acceptable sales demand and revenue generation. The definition of a strategy depends on the company's capabilities and its ability to take risks. If the business has significant resources but does not want to take risks, then a product creation strategy can be used. In case of insufficient availability of opportunities, a market expansion strategy can be used.
Some basic marketing strategies may appear due to the increase in market value, it can distribute specific products to its market constituents in relation to competitors and the rate of increase in sales.
Offensive strategy. It is an active, aggressive position of the company in the market, its goal is to conquer and expand market share. Each product or service market has a so-called optimal market share, which acts as a guarantee of effective work and profit for the company. In cases where the company's income is below the acceptable level, then the manager will have a choice, which is either to expand the company or to leave the market.
An offensive strategy is used in several versions: if the market share is significantly lower than the expected level, or, unable to withstand the competition, has significantly decreased and does not reach required level; the appearance of a new product on consumer market; as a result of the loss of competitive positions of firms, there is a chance to increase the share in the market.
A retention strategy that can keep your market positions... It is used: with a stable position of the company, with the lack of opportunities for an offensive strategy, as a result of caution before taking specific actions. This kind of strategies needs a lot of study and attention to competing firms.
A retreating strategy is more often a necessary measure than a definable one. In this case, the firm independently reduces its market share. The rules of this strategy assume a gradual discontinuation of cases.
A public marketing strategy is a specific cost benefit. Using this strategy, the company aims at a broad target audience... Here you need to think about a product that is interesting to the largest possible number of consumers.
Differentiated marketing strategy, when a company can offer the consumer a new product that differs from competitors. Through this differentiation, each firm can define its target customer.
A focused marketing strategy enables companies to organize opportunities in a single market segment.
A marketing strategy is a system of measures developed for the future that provides guidelines for achieving the set goals.
Mass marketing strategy
Differentiated Marketing Strategy
Concentrated Marketing Strategy
Mass marketing strategy. This strategy is mainly used large companies with significant funds. It is only justified when high sales volumes are achieved.
In accordance with this strategy, one type of product is produced for the entire market (regardless of its segmentation). The challenge for marketing in this case is to ensure that it is attractive to consumers in most market segments.
To successfully implement a mass marketing strategy, the following conditions are required:
Most consumers should feel the need for the same properties of the product;
The company must have sufficient funds to organize mass advertising and mass sales;
The price range that a company applies for its product should be acceptable to most consumers.
Concentrated marketing strategy. With limited resources (for example, in the case of small companies) this strategy very attractive. The essence of the strategy is to concentrate all the resources and marketing efforts of the company on one market segment (a specific group of consumers).
A small company usually cannot compete successfully with larger firms in the entire market, but can gain an advantage in a specific segment due to high degree individuality and a special approach to meeting the needs of its constituent consumers. A concentrated marketing strategy brings success to a company when the following conditions are met:
Marketing efforts are based on the exceptional nature of the company's products (products or goods offered by the company, due to their narrow specialization, should satisfy the needs of consumers in the target segment better than the more universal products of competitors);
A company's marketing program must be better tailored to the target segment than competing programs targeting multiple segments at the same time.
A concentrated marketing strategy enables companies with fewer resources to compete successfully with larger companies in specialized markets. However, with this approach, the company is highly dependent on its small segment, and unfavorable events in it (for example, the entry of a new strong competitor to this market segment) can dramatically worsen the company's position.
Differentiated marketing strategy. This is a trade-off between the approaches described above. A company can select several target market segments, for each of which a separate marketing plan is developed.
A differentiated marketing strategy is advisable under the following conditions:
The company must have sufficient funds to carry out several independent marketing programs;
The company should be able to produce (purchase) several types of goods or several varieties of one product to promote them in different market segments.
Often times, a differentiated marketing strategy is adopted by companies starting with a mass or concentrated marketing strategy, as in many cases this strategy yields the best results.
Marketing strategies require specification through the development of marketing programs.
Marketing program - a document that reflects a set of activities that must be carried out to implement the selected strategies.
The main sections of the marketing program:
The results of the organization's activities for the previous period.
Description of the market situation.
Brief analysis and forecast of the selected target market.
The main goal for the planned period of activity.
Rationale for a marketing strategy.
Calculation of the budget.
Preliminary assessment of the effectiveness of the activities.
Measures to monitor the progress of planned activities.
Strategy selection process
Determination of the firm's strategy. The strategy selection process includes the following main steps:
Clarification of the current strategy;
Business portfolio analysis;
Choosing a firm's strategy and evaluating the chosen strategy.
Clarification of the current strategy. Understanding the current strategy is very important because you cannot make decisions about the future without having a clear idea of what state the organization is in and what strategies it is pursuing. Various schemes of understanding the current strategy can be used. One possible approach is suggested by Thompson and Strickland. They believe that there are five external and internal factors that need to be assessed in order to understand the strategy being implemented.
External factors:
The scope of the firm and the degree of diversity of products, the diversification of the firm;
The general nature and nature of the firm's recent acquisitions and sales of part of its property;
The structure and focus of the company over the last period;
Opportunities that the firm has been targeting recently;
Attitude to external threats.
Internal factors:
The goals of the firm;
Criteria for the allocation of resources and the existing structure of capital investments for manufactured products;
The attitude to financial risk, both on the part of the management, and in accordance with actual practice and implemented financial policy;
The level and degree of concentration of efforts in the field of R&D;
Strategies for individual functional areas of marketing, production, personnel, finance, Scientific research and development).
Business (product) portfolio analysis Business portfolio analysis is one of the most important tools strategic management... It provides a visual representation of the fact that the individual parts of a business are highly interconnected and that the portfolio as a whole is significantly different from the simple sum of its parts and is much more important for the firm than the state of its individual parts. By analyzing a portfolio of businesses, critical business factors such as risk, cash flow, renewal and dying out can be balanced. It is safe to say that business portfolio analysis is the foundation strategic planning... At the same time, it should be remembered that business portfolio analysis is only one of the strategic management tools, and in no way replaces either strategic planning as a component of strategic management, or, of course, strategic management as a whole. After management has considered the strategic alternatives available, it then turns to a specific strategy. A simplified methodology for determining the position of a firm and its products in relation to the opportunities it has grown was developed by the Boston Advisory Group. When analyzing a portfolio, a comparison is made of the share of a firm or its products in the market with the growth rate of all economic activity.
This conclusion is of great methodological significance, since the role of the business portfolio analysis process is often significantly exaggerated. Only those business portfolio analysis issues that need to be considered when choosing a business strategy are considered here. There are six steps to analyzing a business portfolio
The first step is to select the levels in the organization to conduct business portfolio analysis. A firm cannot carry out analysis only at the firm's micro level. You must define a hierarchy of business portfolio analysis levels that starts at the individual product level and ends at the top level of the organization.
The second step is to capture units of analysis, called strategic business units (SEBs), for use when positioning on business portfolio analysis matrices. Very often SEBs differ from production units. SEBs can cover one product, they can cover several products that satisfy similar needs, some firms may consider SEBs as product-market segments.
The third step is to define the parameters of the business portfolio analysis matrices in order to have clarity regarding the collection necessary information, as well as for the choice of variables for which the portfolio analysis will be carried out. For example, when studying the attractiveness of an industry, such variables can be the size of the market, the degree of protection against inflation, profitability, the rate of market growth, the degree of market prevalence in the world.
Variables such as market share, market share growth, relative market share in relation to a leading brand, leadership in quality or other characteristics such as costs, profitability in relation to the leader can be used to measure the strength of a business. When determining the size of matrices, a very important role is played by the choice of units of measurement of volumes, norms of reduction to a single base, time intervals, etc.
Careful consideration of all the above factors for fixing the size of the matrices plays an extremely important role for the qualitative analysis of the portfolio of businesses.
The fourth step is that data collection and analysis is carried out in many directions, although there are four most important areas:
The attractiveness of the industry in terms of the presence of positive and negative aspects of the industry, the nature and degree of risk, etc .;
The competitive position of the firm in the industry, as well as the general competitive position of the firm, assessed according to special scales for individual key characteristics competitiveness;
Opportunities and threats to the firm, which are assessed in relation to the firm, and not to the industry, as is done in the case of assessing the attractiveness of the industry;
Resources and qualifications of personnel, considered from the standpoint of the firm's potential to compete in each specific industry.
The fifth step is the construction and analysis of business portfolio matrices, which should give an idea of the current state of the portfolio, on the basis of which management will be able to predict the future state of the matrices and, accordingly, the expected portfolio of the firm's businesses. At the same time, the management should develop four possible scenarios for the dynamics of changes in the matrices. The first scenario is based on the extrapolation of existing trends, the second is based on the fact that the state of the environment will be favorable, the third scenario considers what will happen in the event of a disaster, and, finally, the fourth scenario reflects the most desirable development for the firm.
The development of the dynamics of changes in matrices is carried out in order to understand whether the transition of a business portfolio to a new state will lead to the achievement of the company's goals. To do this, management must assess the overall health of the forecasted portfolio of businesses. In particular, the following characteristics of the predicted portfolio state should be clarified:
Does the portfolio include a sufficient number of businesses in attractive industries;
Does the portfolio raise too many questions and ambiguities;
Is there a sufficient number of consistently profitable products in order to grow promising and finance new products;
Whether the portfolio is generating sufficient income, both profit and money;
Is the portfolio highly vulnerable in the event of negative trends;
Are there many businesses in the portfolio that are weak in terms of competition?
Depending on the answer to these questions, the management may come to the conclusion that it is necessary to form a new product portfolio.
The sixth step is the determination of the desired portfolio of businesses is carried out in accordance with which of the options can best help the firm achieve its goals. In speaking of this, it is important to emphasize that business portfolio analysis matrices are not in themselves a decision-making tool. They only show the state of the portfolio of businesses, which should be considered by management when making a decision.
Choosing a firm's strategy. The choice of the firm's strategy is carried out by the management based on the analysis of key factors characterizing the state of the firm, taking into account the results of the analysis of the portfolio of businesses, as well as the nature and essence of the strategies being implemented.
The main key factors that should be considered in the first place when choosing a strategy are as follows.
The state of the industry and the position of the firm in the industry can often play a decisive role in the choice of a firm's growth strategy. Leading, strong firms should strive to maximize and reinforce the opportunities offered by their leadership position. Leading firms, depending on the state of the industry, must choose different growth strategies. So, for example, if the industry is in decline, then you should rely on diversification strategies, but if the industry is developing rapidly, then the choice should fall on the strategy of concentrated growth, or the strategy of integrated growth.
Weak firms must behave differently. They must choose strategies that can increase their strength. If there are no such strategies, then they should leave the industry. For example, if attempts to gain strength in a rapidly growing industry through concentrated growth strategies do not lead to the desired state, the firm must implement one of the downsizing strategies.
Thompson and Strickland proposed the following matrix of strategy selection depending on the dynamics of market growth for products (equivalent to industry growth) and the competitive position of the firm:
Rapid market growth
Slow market growth
The goals of the firm give the uniqueness and originality to the choice of strategy in relation to each particular firm. The goals reflect what the firm is striving for. If, for example, the goals do not imply intensive growth of the firm, then they cannot be chosen, the appropriate growth strategies are assumed, even though there are all the prerequisites for this both in the market and in the industry, and in the potential of the firm.
The interests and attitudes of top management play a very important role in the choice of the company's development strategy. For example, there are times when senior management is reluctant to rethink decisions it has made, even if new perspectives open up. Management may like to take risks, or, on the contrary, strive to avoid risk by any means. And this attitude can be decisive in choosing a development strategy, for example, in choosing a strategy for developing a new product or entering new markets. Personal likes or dislikes on the part of leaders can also greatly influence the choice of strategy. For example, a course may be taken to diversify or take over another firm, only to settle personal scores or prove something to certain individuals.
A firm's financial resources also have a significant impact on the choice of strategy. Any changes in the behavior of a firm, such as entering new markets, developing a new product, and moving to a new industry, require large financial costs. Therefore, firms that have large financial resources or easy access to them are in a much better position when choosing a behavior strategy and have a much larger number of strategy options to choose from than firms with severely limited financial resources.
The qualifications of employees, as well as financial resources, are a strong limiting factor when choosing a development strategy. Deepening and expanding the qualification potential of workers is one of the most important conditions that ensure the possibility of transition to new industries or to high-quality technological renewal of existing production. Without sufficiently complete information about the qualification potential, the management cannot make the right choice of the firm's strategy.
The firm's commitment to previous strategies creates a kind of inertia in development. It is impossible to completely abandon all previous commitments in connection with the transition to new strategies. Therefore, when choosing new strategies, it is necessary to take into account the fact that for some time the obligations of previous years will be in force, which, accordingly, will restrain or correct the possibilities of implementing new strategies. In this regard, in order to avoid a strong negative impact of old commitments, it is necessary to take them into account as fully as possible when choosing new strategies and to include their implementation in the process of implementing new strategies.
The degree of dependence on the external environment has a significant impact on the choice of the firm's strategy. There are situations when a firm is so dependent on suppliers or buyers of its products that it is not free to make a choice of strategy based only on the possibility of a fuller use of its potential. In some cases, external dependence can play a much larger role in the choice of the firm's strategy than all other factors. Strong external dependence may be due to legal regulation the behavior of the company, as well as social constraints, conditions of interaction with the natural environment, etc.
The time factor must be taken into account in all cases of choosing a strategy. This is due to the fact that both the opportunities and threats for the company, and the planned changes always have certain time boundaries. At the same time, it is important to take into account both the calendar time and the duration of the stages of the implementation of specific actions to implement the strategy. A firm can not implement a strategy at any time and not in any calendar time, but only in those moments and in those terms when the opportunity arises for this. Very often, success in implementing a strategy and, consequently, success in competition is achieved by the company that has better learned to take time into account and, accordingly, is better able to manage processes in time.
Evaluation of the chosen strategy. Evaluation of the chosen strategy is mainly carried out in the form of an analysis of the correctness and sufficiency of taking into account the main factors that determine the possibilities of implementing the strategy when choosing a strategy. The procedure for evaluating the chosen strategy is ultimately subordinate to one thing: whether the chosen strategy will lead to the achievement of the firm's goals. And this is the main criterion for evaluating the chosen strategy. If the strategy is consistent with the goals of the company, then its further evaluation is carried out in the following areas.
Compliance of the chosen strategy with the state and requirements of the environment. It is checked to what extent the strategy is linked to the requirements of the main subjects of the environment, to what extent the factors of market dynamics and development dynamics are taken into account life cycle product, will the implementation of the strategy lead to the emergence of new competitive advantages etc.
Compliance of the chosen strategy with the potential and capabilities of the firm. In this case, it is assessed how the chosen strategy is linked to other strategies, whether the strategy corresponds to the capabilities of the personnel, whether the existing structure allows the strategy to be successfully implemented, whether the program for implementing the strategy is verified in time, etc.
The acceptability of the risk inherent in the strategy. The assessment of the justification of the risk is carried out in three directions:
Are the assumptions underlying the choice of strategy realistic;
What negative consequences for the company can the failure of the strategy lead to;
Does the possible positive result justify the risk of losses from failure in the implementation of the strategy?
Summing up the above, it should be noted, we can say if we combine, the main directions of marketing strategies by the American marketer F. Kotler and the American economist M. Porter in two aspects - the choice of the target market and strategic advantage, then the following main strategies of the company can be distinguished:
Massive, undifferentiated, standard marketing strategy;
Product differentiated marketing strategy;
Concentrated, targeted marketing strategy.
Depending on the market share, there are three types of marketing strategy - offensive, defensive, vertical integration strategy. These strategies are called military marketing strategies.
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There are the following types of competition.
1. Perfect (or free): many independent firms participate in the market, making their own decisions about what to produce and to what extent.
1) the volume of production of an individual firm is insignificant and does not significantly affect the price of the goods;
2) the goods are homogeneous;
3) buyers are well informed about prices;
4) sellers are independent from each other;
5) the market is not limited, that is, free access is possible for anyone who wishes to become an entrepreneur.
Perfect competition forms the market mechanism of price formation and self-adjustment of the economic system.
This type of competition has only theoretical value, 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 it 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. Monopoly is the exclusive right of production owned by one person, group of persons or state.
Allocate: natural (legal) and artificial, as well as pure and absolute.
Monopoly firms create barriers to entry for new firms; restrict 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.
Oligopoly is the existence of several firms, usually large ones, which account for the bulk of the industry's sales.
Market entry for new firms is difficult due to high capital costs.
Pricing is an artificial knocking down of prices for a product. Price discrimination is widely used here when certain conditions: monopoly seller; having a strong marketing policy at the company; the impossibility of resale of the goods from the original purchaser. This type of competition is especially often used in the service sector.
Non-price is a competition carried out by improving the quality of products and the conditions for their sale.
Conducting non-price competition can be carried out in two directions.
1. Competition for the product.
2. Competition in terms of sales.
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Kinds competition... There are the following kinds competition... 1. Perfect (or free): many independent firms participate in the market, independently accepting ... -
Subjects competition(competitors) are persons who have the right to carry out competitive actions in the form: 1) business entities. -
Kinds competition: - general and special standards
- competition between two or more articles, one general and the other special -
Kinds competition... There are the following kinds competition... 1. Perfect (or free): on the market at. -
UNFAIR COMPETITION... Unscrupulous competition
Kinds unscrupulous competition -
Kinds unscrupulous competition: 1) mixing between the activities (goods, works, services) of competitors (parasitism) - sale ... -
UNFAIR COMPETITION... Unscrupulous competition in the commodity markets are aimed at purchasing
Kinds unscrupulous competition
Competition is understood as the rivalry between individuals, economic persons interested in achieving the same goal in any field. The seller who sells the goods is obliged to capture the attention of buyers and encourage them to purchase the goods. Naturally, the consumer properties of goods are assessed by buyers: one of the goods is given preference, and these goods are purchased. The sale 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 standpoint, competition is:
1. Functional competition.
It is due to the fact that a need can be satisfied in a variety of ways. All products that meet a specific need are functional competitors. A typical example is goods that satisfy the needs of the pastime on the road (chess, dominoes, books, newspapers, portable tape recorders, etc.). Functional competition is also typical for the selection of concert events, visits to 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 essential parameters and, accordingly, having different kinds(for example, bicycles of various brands, motorcycles, cars).
3. Subject (interfirm) competition.
It arises as a result of the fact that firms produce, in fact, identical goods, differing only in the quality of manufacture (or the same in quality).
- 4. Unfair competition is any act of behavior that is contrary to fair rules in industrial and trade affairs... Subject to the ban:
- * actions that cause confusion in the relations of competitors;
- * false statements in the implementation of commercial activities that can discredit industrial or trading activities competitor;
- * statements that, in the implementation of commercial activities, may mislead the buyer regarding the nature, method of manufacture, suitability for use, quality of the goods;
- * actions related to improper or unlawful use of industrial property objects. For example, labeling a product with someone else's or a similar trademark, using someone else's brand name in advertising.
Ignorance and other reasons are not excuses if the act of unfair competition is committed.
Illegal methods are often used in the competition. This is a slander against competitors' products, the release of imitation products with a 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 for insignificant 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 trade potential are limited by several critical factors, then a situation is possible when each competitor will find its customers, while how many competitors each will be able to coexist in his own "professional segment";
- * with one critical factor there are no more than two or three competitors;
- * A two-to-one ratio between any two competitors is the equilibrium point when the urge to change the ratio dies down.
A firm's competitors have a significant impact on its success in entering the target market. There are four possible competitive structures: monopoly, oligopoly, monopoly competition, and pure competition.
In a monopoly, there is only one firm that sells a specific product and service. For a particular product or service, the market can be large or small. The elasticity of demand under monopoly conditions depends mainly on the demand for the product. The monopolist is able to completely control his marketing plan. As a patent expires, competition increases.
Under an oligopoly, there are several firms that account for the bulk of sales of a particular product. For example, over 90% of passenger cars sold in the United States are made by General Motors, Ford and Chrysler.
The market is often broken down into distinct segments. The elasticity of consumer demand is complex: the demand for the products of one firm depends on the behavior of others. Since under oligopoly there are only a few firms that determine the trade in a particular product, they are still able to control their marketing plans.
Monopolistic competition occurs when there are several firms offering different marketing structures. In the United States, this is the most common form of competition. In doing so, each firm achieves advantages using its own combination of marketing factors.
Competition persists because firms make 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 goods. In the United States, such competition is less common and most common in manufacturing. food products and raw materials.
The market for each firm 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.
By methods, competition is subdivided as follows.
1. Price competition.
It lies in the fact that similar goods differ in price. The way to compete is to lower prices. This method was typical for early periods market development. Price competition is direct and latent. In the first case, firms widely inform the public about the decline in prices for manufactured goods, in the second, they bring them to the market. new product with significantly improved consumer properties, while its price rises slightly.
2. Non-price competition.
It is characterized by the fact that the product quality is higher than that of competitors. The product is being improved in the field of reliability, design, comfort, with special attention paid to the price of consumption.
Marketing methods of running a firm are essentially non-price methods of competition. Competition, competitors and their strategy are studied by 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 trade marks goods;
- 4. the attractive side of the packaging of goods;
- 5. organization of warranty and post-warranty service;
- 6. sales and its organization;
- 7. distribution channels.
Any product sold on the market should 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. The modern entrepreneur needs to keep an eye on suppliers, consumers, and other forces that drive competition in order to survive and thrive.
Let us analyze marketing competition using the example of PCHUP "Universal Bobruisk" PA "BelOG". The aim of the company is to manufacture and sell competitive products in accordance with the needs of the market. At present, the enterprise produces about 300 types of products: automobile hoses and mirrors, spare parts, electric cartridges, garments, products from the vine.
The main competitors of PCHUP "Universal Bobruisk" in the production and sale of rear-view mirrors are PO "Rotton" (Gomel); hoses high pressure Borisov plant of auto-aggregate products and Bobruisk plant of tractor parts and assemblies.
However, the products of PChUP "Universal Bobruisk" are the most competitive, because possesses high quality and low price in comparison with other manufacturers, therefore the enterprise is the main supplier of the Minsk Automobile Plant and PO "MTZ".
