Ans. What is Competition? Competition is a contest between individuals , groups, nations, animals, etc. for territory, a niche, or allocation of resources. It arises whenever two or more parties strive for a goal which cannot be shared. Humans compete for water, food, & mates though when these needs are met deep rivalries often arise ov er the pursuit of wealth, prestige, & fame. Competition may give incentives for self -improvement. For example, if two watchmakers are competing for business, they will hopefully improve their products & service to increase to increase sales. If one watchmaker is more responsive to the needs of customers, this watchmaker will flourish.
Three levels of competition have been classified as follows:-
1. Direct Competition: - This is the narrowest form of competition also called category competition or brand competition, where products which perform the same function compete against each other. For example, Vodafone & Airtel, if one of them launches a new scheme then other also has to launch the same scheme in order to survive in competition so that customers don‟t switch to its rival. This is called direct Competition.
2. Indirect Competition (Substitute competition ):- In this form of competition, products are close substitutes for one another. Substitutes play a limit on prices & on profits. If technology advances or competition increases in these substitute industries, prices & profits in the segment are likely to fall. For example, the arrival & growth of budget airlines in India has already seen a revision in railway fares and amenities.
3. Budget Competition: - The broadest form of competition is typically called budget competition. In this category, anything on which the consumer might want to spend their available money is included.
Because of Competition it becomes important to use proper marketing techniques:Marketing is an integrated communication base process through which individuals & communities discover that existing & newly -identified needs & wants may be satisfied by the products & services of others. The term developed from the original meaning which referred literally to going to market, as in shopping, or going to a market to buy or sell goods or services. Marketing practice tended to be seen as a creative industry in the past, which included advertising, distribution and selling.Thats why, it becomes essential to have marketing plan in mind before actually going to the market.
MARKETING PLANS: Most business people agree that a good marketing plan is essential for success. Marketing plan is a detailed roadmap th at outlines all your marketing strategies, tactics, activities, costs and projected results over a period of time. Marketing plan keeps your entire team focused on specific goals A good marketing plan typically includes: 1. Financial goals 2. Positioning strategy 3. Brand strategy 4. Product/service overview 5. Detailed goals by product, distribution channel &/or customer segment 6. Sales plan 7. Major marketing campaigns 8. Detailed budget 9. Dates to review progress
It takes time to develop a marketing plan, but it‟s important because it ties all of your activities to tangible goals. It‟s also a great opportunity to focus on the future, generate new ideas, and inspire your team. Even a simple plan is better than none, but when you invest more effort upf ront, you‟ll have a better roadmap toward your goals.
BRAND DIFFERENTIAT ION: -
Differentiation is the art of designing a set of meaningful differences to distinguish the company‟s offering from competitors‟ offering Differentiation is the way through wh ich the quality of goods is improved as often as required. Launching of new goods in an entirely new way is a radical change, often leading to changes in consumer...