Competitive product: Difference between revisions
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'''Competitive [[product]]''' is used to describe good or [[service]] which can be introduced on the [[market]] and gain [[consumer]] acceptance due to lower [[price]], better [[quality]], better [[brand]] perception, lower maintenance [[cost]], higher convenience. All products can be made to be competitive by using optimal [[marketing mix]] [[strategy]], market segmentation and [[customer]] [[needs]] analysis. They are created during entering of new market, during strong [[competition]] on the market, during fast development. It requires high financial [[investment]] due to necessity of technological change, high R&D expenses and [[need]] for innovative solutions. | |||
'''Competitive [[product]]''' is used to describe good or [[service]] which can be introduced on the [[market]] and gain [[consumer]] acceptance due to lower [[price]], better [[quality]], better [[brand]] perception, lower maintenance [[cost]], higher convenience. All products can be made to be competitive by using optimal [[marketing mix]] [[strategy]], market segmentation and [[customer]] [[needs]] analysis. They are created during entering of new market, during strong [[competition]] on the market, during fast development. It requires high financial investment due to necessity of technological change, high R&D expenses and [[need]] for innovative solutions. | |||
==Product on market== | ==Product on market== | ||
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* '''Smartphones''': A competitive product in the smartphone market are those that are the latest model, offer a wide range of features, have a high-end camera, and have a long-lasting battery life. Examples include the latest iPhones, Samsung Galaxy devices, and Google Pixel devices. | * '''Smartphones''': A competitive product in the smartphone market are those that are the latest model, offer a wide range of features, have a high-end camera, and have a long-lasting battery life. Examples include the latest iPhones, Samsung Galaxy devices, and Google Pixel devices. | ||
* '''Computer hardware''': A competitive product in the computer hardware market are those that offer the highest level of performance and features for the lowest price. Examples include the latest Intel Core i7 processors, Nvidia RTX 2080 Ti graphics cards, and the latest gaming motherboards. | * '''Computer hardware''': A competitive product in the computer hardware market are those that offer the highest level of performance and features for the lowest price. Examples include the latest Intel Core i7 processors, Nvidia RTX 2080 Ti graphics cards, and the latest gaming motherboards. | ||
* '''Home appliances''': A competitive product in the home appliance market are those that have the highest energy efficiency ratings, offer the most features, and are the most reliable. Examples include the latest refrigerators, washers and dryers, and dishwashers from brands like LG and Samsung. | * '''Home appliances''': A competitive product in the home appliance market are those that have the highest energy [[efficiency]] ratings, offer the most features, and are the most reliable. Examples include the latest refrigerators, washers and dryers, and dishwashers from brands like LG and Samsung. | ||
* '''Automobiles''': A competitive product in the automobile market are those that offer the most features and the best performance for the lowest price. Examples include the latest models from brands like Toyota, Honda, and Ford. | * '''Automobiles''': A competitive product in the automobile market are those that offer the most features and the best performance for the lowest price. Examples include the latest models from brands like Toyota, Honda, and Ford. | ||
==Advantages of Competitive product== | ==Advantages of Competitive product== | ||
A competitive product can offer numerous advantages to businesses and customers alike. These include: | A competitive product can offer numerous advantages to businesses and customers alike. These include: | ||
* Increased market share - A competitive product can help businesses gain a larger market share, as customers are more likely to purchase a product that they view as offering the best value. | * Increased market share - A competitive product can help businesses gain a larger market share, as customers are more likely to purchase a product that they view as offering the [[best value]]. | ||
* Increased brand recognition - A competitive product can help to increase brand recognition, as customers may become more familiar with the company and its offerings if they are well-received among consumers. | * Increased brand recognition - A competitive product can help to increase brand recognition, as customers may become more familiar with the [[company]] and its offerings if they are well-received among consumers. | ||
* Enhanced customer loyalty - Customers that are satisfied with a competitive product are more likely to remain loyal to the brand, creating a more stable customer base. | * Enhanced [[customer loyalty]] - Customers that are satisfied with a competitive product are more likely to remain loyal to the brand, creating a more stable customer base. | ||
* Increased profit margins - If the quality of a product is high and the price is low, a business can experience an increase in profit margins. | * Increased [[profit]] margins - If the quality of a product is high and the price is low, a business can experience an increase in profit margins. | ||
* Reduced customer acquisition costs - By offering a competitive product, businesses can invest less in marketing and customer acquisition costs as customers are more likely to purchase the product. | * Reduced customer acquisition costs - By offering a competitive product, businesses can invest less in [[marketing]] and customer acquisition costs as customers are more likely to purchase the product. | ||
==Limitations of Competitive product== | ==Limitations of Competitive product== | ||
* Competition between products can become too strong, leading to a situation in which companies are unable to differentiate themselves and differentiate their products from the competition. This can lead to commoditization of products, as all products become indistinguishable from one another, leading to price wars, low margins, and limited customer loyalty. | * Competition between products can become too strong, leading to a situation in which companies are unable to differentiate themselves and differentiate their products from the competition. This can lead to commoditization of products, as all products become indistinguishable from one another, leading to price wars, low margins, and limited customer loyalty. | ||
* Competitive products often require high levels of investment, as companies must develop new technologies, invest in research and development, and create innovative solutions. This high level of investment can be a deterrent to companies, and can lead to unfavorable returns on investment. | * Competitive products often require high levels of investment, as companies must develop new technologies, invest in [[research and development]], and create innovative solutions. This high level of investment can be a deterrent to companies, and can lead to unfavorable returns on investment. | ||
* Companies may struggle to differentiate their products from the competition and create a unique selling point for their product. Without a unique selling point, customers may not be able to recognize the benefits of the product and will be unlikely to purchase it. | * Companies may struggle to differentiate their products from the competition and create a unique selling point for their product. Without a unique selling point, customers may not be able to recognize the benefits of the product and will be unlikely to purchase it. | ||
* Companies may become too focused on competing with the competition and forget to focus on customer needs and satisfaction. This can lead to a situation in which customers are not satisfied with the product and do not return to buy it again, resulting in low customer retention rates. | * Companies may become too focused on competing with the competition and forget to focus on [[customer needs]] and satisfaction. This can lead to a situation in which customers are not satisfied with the product and do not return to buy it again, resulting in low customer retention rates. | ||
==Other approaches related to Competitive product== | ==Other approaches related to Competitive product== | ||
In order to create competitive products, there are several approaches which can be taken: | In order to create competitive products, there are several approaches which can be taken: | ||
* Strategic planning - this involves creating a clear plan that outlines the goals, desired outcomes and strategies in order to reach them. It also includes creating a budget and timeline for the project. | * Strategic [[planning]] - this involves creating a clear [[plan]] that outlines the goals, desired outcomes and strategies in order to reach them. It also includes creating a budget and timeline for the [[project]]. | ||
* Market research - this involves conducting surveys, interviews and focus groups in order to understand the needs and wants of the target market. It also involves analyzing competition and creating strategies to differentiate the product and gain an edge over them. | * [[Market research]] - this involves conducting surveys, interviews and focus groups in order to understand the needs and wants of the target market. It also involves analyzing competition and creating strategies to differentiate the product and gain an edge over them. | ||
* Product design - this involves creating a product that meets the needs of the target market, as well as being attractive and appealing. It also involves finding ways to make the product efficient and cost-effective. | * Product design - this involves creating a product that meets the needs of the target market, as well as being attractive and appealing. It also involves finding ways to make the product efficient and cost-effective. | ||
* Marketing - this involves creating a marketing plan to create awareness of the product and drive sales. It also involves using different advertising mediums such as TV, radio, and print. | * Marketing - this involves creating a marketing plan to create awareness of the product and drive sales. It also involves using different advertising mediums such as TV, radio, and print. | ||
Creating competitive products requires [[strategic planning]], market research, product design, and marketing in order to ensure that the product meets the needs of the target market and stands out from the competition. | |||
{{infobox5|list1={{i5link|a=[[Imitator strategy]]}} — {{i5link|a=[[Customer driven]]}} — {{i5link|a=[[Competitive Pricing]]}} — {{i5link|a=[[Market niche strategy]]}} — {{i5link|a=[[Brand value chain]]}} — {{i5link|a=[[Unsought good]]}} — {{i5link|a=[[Brand leader]]}} — {{i5link|a=[[Skimming pricing strategy]]}} — {{i5link|a=[[Concentrated marketing]]}} }} | |||
==References== | ==References== | ||
Latest revision as of 16:17, 17 November 2023
Competitive product is used to describe good or service which can be introduced on the market and gain consumer acceptance due to lower price, better quality, better brand perception, lower maintenance cost, higher convenience. All products can be made to be competitive by using optimal marketing mix strategy, market segmentation and customer needs analysis. They are created during entering of new market, during strong competition on the market, during fast development. It requires high financial investment due to necessity of technological change, high R&D expenses and need for innovative solutions.
Product on market
Before adding new product on the market, firms need to understand relations between competing products. It is needed to maximise success and reduce the risk to zero for launching new products. Relation between competing products it is depends on decisions which consumers make. Consumer should consider which from available on market product choose and when do it. This choices depend on social relation between consumers. Firms need to study characteristic influence of social interactions for their market. Nowadays market is full of new products which are competitive. Companies have the same standard of technology and methods for researches of customer's needs (K. Lee and others 2013, p. 1).
Product on Internet
A lot of people=customers use networks for finding and buying products which they need. Choosing one product from all propositions from many firms is difficult. Products on market have the same functions and costs similar amount. Buying via Internet is more comfortable then going to some shops in several different location and choose one of them. Customers who buying on network could check comments other customers who buy this particular product. People can help each other with choose of the most effective, solid and reliable product for good price. Opinion of other customers could help us in choosing competitive product. The most important advantage of internet shopping is possibility of easy comparison products from different shops (D.Shen and others 2013, p. 8).
Competition
Firms still need to rivalry with others. It is necessary. They need to have actual information about situation in the market and customers’ needs. Creating new product is one of the possibility to get an advantage over the competition. Firms need to research consumers necessity. Innovation is the key to satisfy clients and make the right position on the market and fend off competition attacks. This is reason, why companies need to launch new products, ideas and new thoughts (W. Kuncoro, WO Suriani 2018, p. 186).
Examples of Competitive product
- Smartphones: A competitive product in the smartphone market are those that are the latest model, offer a wide range of features, have a high-end camera, and have a long-lasting battery life. Examples include the latest iPhones, Samsung Galaxy devices, and Google Pixel devices.
- Computer hardware: A competitive product in the computer hardware market are those that offer the highest level of performance and features for the lowest price. Examples include the latest Intel Core i7 processors, Nvidia RTX 2080 Ti graphics cards, and the latest gaming motherboards.
- Home appliances: A competitive product in the home appliance market are those that have the highest energy efficiency ratings, offer the most features, and are the most reliable. Examples include the latest refrigerators, washers and dryers, and dishwashers from brands like LG and Samsung.
- Automobiles: A competitive product in the automobile market are those that offer the most features and the best performance for the lowest price. Examples include the latest models from brands like Toyota, Honda, and Ford.
Advantages of Competitive product
A competitive product can offer numerous advantages to businesses and customers alike. These include:
- Increased market share - A competitive product can help businesses gain a larger market share, as customers are more likely to purchase a product that they view as offering the best value.
- Increased brand recognition - A competitive product can help to increase brand recognition, as customers may become more familiar with the company and its offerings if they are well-received among consumers.
- Enhanced customer loyalty - Customers that are satisfied with a competitive product are more likely to remain loyal to the brand, creating a more stable customer base.
- Increased profit margins - If the quality of a product is high and the price is low, a business can experience an increase in profit margins.
- Reduced customer acquisition costs - By offering a competitive product, businesses can invest less in marketing and customer acquisition costs as customers are more likely to purchase the product.
Limitations of Competitive product
- Competition between products can become too strong, leading to a situation in which companies are unable to differentiate themselves and differentiate their products from the competition. This can lead to commoditization of products, as all products become indistinguishable from one another, leading to price wars, low margins, and limited customer loyalty.
- Competitive products often require high levels of investment, as companies must develop new technologies, invest in research and development, and create innovative solutions. This high level of investment can be a deterrent to companies, and can lead to unfavorable returns on investment.
- Companies may struggle to differentiate their products from the competition and create a unique selling point for their product. Without a unique selling point, customers may not be able to recognize the benefits of the product and will be unlikely to purchase it.
- Companies may become too focused on competing with the competition and forget to focus on customer needs and satisfaction. This can lead to a situation in which customers are not satisfied with the product and do not return to buy it again, resulting in low customer retention rates.
In order to create competitive products, there are several approaches which can be taken:
- Strategic planning - this involves creating a clear plan that outlines the goals, desired outcomes and strategies in order to reach them. It also includes creating a budget and timeline for the project.
- Market research - this involves conducting surveys, interviews and focus groups in order to understand the needs and wants of the target market. It also involves analyzing competition and creating strategies to differentiate the product and gain an edge over them.
- Product design - this involves creating a product that meets the needs of the target market, as well as being attractive and appealing. It also involves finding ways to make the product efficient and cost-effective.
- Marketing - this involves creating a marketing plan to create awareness of the product and drive sales. It also involves using different advertising mediums such as TV, radio, and print.
Creating competitive products requires strategic planning, market research, product design, and marketing in order to ensure that the product meets the needs of the target market and stands out from the competition.
| Competitive product — recommended articles |
| Imitator strategy — Customer driven — Competitive Pricing — Market niche strategy — Brand value chain — Unsought good — Brand leader — Skimming pricing strategy — Concentrated marketing |
References
- Kuncoro, W., Suriani, WO. (2018). Achieving sustainable competitive advantage through product innovation and market driving. Asia Pacific Management Review, Volume 23, Issue 3, 186-192.
- Lee, K., Kim, S., Kim, CO., & Park, T. (2013). An Agent-Based Competitive Product Diffusion Model for the Estimation and Sensitivity Analysis of Social Network Structure and Purchase Time Distribution. Journal of Artificial Societies and Social Simulation, 16 (1) 3, p. 1.
- Marks, U. G., & Albers, S. (2001). Experiments in competitive product positioning: Actual behavior compared to Nash Solutions. Schmalenbach Business Review, 53(3), 150-174.
- Shen, D., Huang, S., Zhang, Y. and others (2013). Detecting competitive product reviews. United States Patent, US 8,620,906 B2, p. 8.
Author: Jolanta Guz
