Competitive product
| Competitive product |
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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.
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).
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
