Definition and types of competition

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A total engine marketing firm that operates in the market, generally not considered in itself, but given the absolute totality of the information flows and relationships that link it with certain subjects of the market.Different conditions of the environment in which it operates any specific company, called its marketing environment.Marketing environment of each individual company consists of a combination of various active forces and entities that operate outside of the company and have an impact on the possibility of using the management service marketing support and set with all kinds of target customers have a relationship for quite successful cooperation.

This marketing environment of each company is made up of the macro and micro environment.Microenvironment is the various forces that have a direct bearing on the company, as well \ as its ability to service potential clients.Macromedia forces seems a bit more extensive social plan, which constantly have a definite impact on the microenvironment.

Thus, it can be said that competitors are incredibly important part of marketing microenvironment of each firm, and absolutely all kinds of important competition.If you do not take into account an element as its competitors, the development of a viable strategy or tactics to ensure the functioning of the company there can be no question.

Today, there are quite a lot of different definitions of the competition, however, we consider only the most commonly used ones, as well as the very essence and types of competition.As mentioned earlier, some competitors are the subjects of marketing systems that are capable of their own actions to influence the choice by various vendors, markets, formation of assortment, intermediaries, and the entire complex is carried out by the general marketing activities.And it should be said that different types of competition have different effects.Considering the competition, so it can be said in other words that they are - a company having partially or completely coinciding niche.Under the niche in this case it refers to a certain set of specific market segments, which will suit those services or products that are produced by this company.

presence of competing firms is starting to produce the phenomenon of competition.In economic terms it is worth noting that the competition - it is some economic process of the relationship or interaction between the struggle of some manufacturers or suppliers in the implementation of certain products, as well as some degree of competition between the different manufacturers of a particular product for the most favorable conditions for production.It should be said that taking into account all types of competition, without relying on any one of them.

Market competition so far developed mainly only accessible segments of the market.That is why one of the most popular methods resorted to by the modern firm, it is to leave abruptly to inaccessible to other competitors in the market segments.Types of competition in the economy, the following - is:

  • Price (when firms compete on price).
  • Non-price (when firms compete on the basis of the quality of the use-value).

Price competition is nowadays dates back to the times have completely free market competition between companies, even when a variety of similar goods in the market offered by totally different price.

Reduced price was at the time a basis by which every trader could identify their goods, thus attracting the attention of a huge number of customers, thereby earning the desired market share.