The main methods of non-price competition are. Price and non-price competition. Non-price competition methods. Conditional-economic: considering in more detail

In this article, you will learn:

What are the differences between price and non-price competition

What are the advantages and disadvantages of using non-price competition

In what forms can non-price competition take place?

What methods of non-price competition are used in a modern market economy

From an early age, each of us falls into the harsh circumstances of competition in various areas of life. Competition in the economy can definitely be called one of the toughest types of struggle. Here, both wealth and luck are at stake. In entrepreneurship, there are two types of competition - price and non-price. More often than not, low cost actually wins. Yet non-price product competition helps to achieve greater success.

What is non-price competition

Competition - this is the struggle of individuals in various areas of the life process. First of all, I mean the economic sphere. Figuratively speaking, competitors are the owners of nearby shops, who strive to get as many visitors as possible. But it's not just the number of buyers that matters. It is also important to sell your goods and services on the most profitable terms. Scientists believe that it is competition that spurs the modern world to develop at such a rapid pace. And at the same time it is the basis of the instability of the world economy.

Exist two paths of economic rivalry: price and non-price. The difference between price and non-price methods of competition is quite serious:

Price competition Is a type of struggle with rivals by reducing the cost of goods. Most often, this method is used where demand is greater than supply. Another option is when the competition between customers is strong enough. Also, this option is used when there are prerequisites for pure competition (many manufacturers offer a product of the same type). This way of competing with competitors cannot be called the most effective. After all, rivals can put prices at the same level, or even lower, at one moment. In this case, both the subject himself and his competitors lose their earnings. Despite all the disadvantages, this option is nevertheless widely used, especially in cases where products need to be introduced to a new market. Such measures should be taken very carefully. You need to know for sure that a decrease in value will really turn into an increase in profits, and not losses.
Non-price competition suggests more progressive and modern techniques. Among them - the isolation of their products among similar products from competitors, the introduction of special characteristics, expansion of the range, quality improvement, increased advertising costs and warranty service. The use of methods of non-price competition generates conditional monetary stability. It is also a significant positive that competitors often fail to retaliate immediately, giving the opponent an edge. If the innovation turns out to be successful, all the spending on non-price competition options not only pays off, but also serves as a source of income.

To successfully apply the methods of non-price competition, companies and organizations must be aware of the latest developments in their market and continuously develop, which leads the country's economy along the path of progress.
Non-price competition is a form of competitive rivalry tactics. Various methods are used here, with the exception of reducing the cost of goods and services. Non-price competition involves the use of more advanced methods of competing for the buyer, such as creative advertising or improving the quality characteristics of a product. Quality improvement goes in two ways: by working on the technical parameters of the product or by increasing its flexibility according to the wishes of the customers.
Non-price competition allows you to focus on progress and drive sales without price fluctuations. Non-price competition indicates a higher quality level of interaction in the market.
There are a number situations where non-price competition applies:

The cost cannot be reduced due to the limits set by the market controller.
A punitive agreement has been signed that does not allow for price reductions. The meaning of such a document is to stabilize a specific level of profitability.
The firm has invested so much money in the production of goods for the new market that cost reduction is economically meaningless.
Distribution costs are high.
In the market, demand exceeds supply, which means that the client will buy products at any price.
The company relies on improving the quality characteristics of manufactured goods - by improving the technical properties of products (so-called product competition).

Non-price competition is typical for those industries where the quality of the product, its uniqueness, packaging, appearance, brand style, additional services, and off-market ways of influencing the buyer are of key importance. All these points are not directly related to cost, or even have nothing to do with it. Over the 80s and 90s, the first positions in the list of non-price criteria were:

reduced energy consumption and low metal consumption;
minimal harm to the environment (or lack thereof);
the ability to hand over the product as a starting fee for a new one;
advertising;
high level of warranty service (as well as post-warranty);
indicators of related offers.

Examplenon-price competition . At the start of the global sales of its products in Russia, Sony faced difficulties in relation to non-price competition. The problem was that according to current company regulations, customers were only allowed to return broken products after five attempts to fix them. The law in our country, in turn, gives the client the right to return the goods immediately after identifying a problem. All firms in the Russian Federation comply with this condition. To boost sales, Sony has not only changed the warranty standards to the local sample, but also significantly reduced the warranty period, similar to the most popular models. As a result, the firm strengthened its position in the non-price area of \u200b\u200bcompetitive rivalry.

What are the disadvantages and advantages of non-price competition

Key benefits non-price competition are as follows:

Price battles negatively affect all market participants. Bonuses are awarded only to the buyer. Price competition can lead to monopoly and economic decline. The more powerful the firm, the longer it can sell goods at a reduced cost. Small and medium-sized companies will lose out in competition with leading brands.
Smart differentiation is a more productive way of competing than dumping. The client will pay the price set by the company for the desired product.
With the right behavior, non-price competition is less costly than price competition. A good video clip can be made for little money, the main thing is to find a creative and tempting idea. The same goes for product properties: even a minimal improvement in design can attract the attention of buyers.
With non-price competition, the company has a huge field for activity: it is possible to gain superiority with the help of any successful find.

However, there is also a number of disadvantages non-price competition:

The firm loses that group of buyers for whom the cost is in the first place.
Dependence on the professionalism of managers and ordinary employees, because they must develop competent tactics of competition and systematically monitor the compliance of the real state of affairs with the plans.
Many firms use illegal methods of non-price competition (enticing personnel, making counterfeit products, industrial espionage).
Cash infusions are needed, often constant.
High spending on trade marketing, advertising and PR.
Specificity in positioning, thoughtfulness of actions, correctness of tactical moves are needed.

What types of non-price competition can be used and which ones are not worth it

There are different types of non-price competition:

legal;
semi-legal;
deterring competitors using levers of government regulation and support.

Legal methods of competition suggest:

product rivalry. In the course of work on the existing assortment, a new product appears, which has a new price;
competition to provide services. It is especially relevant for the machinery and equipment market. The service package includes the supply of advertising materials, the transfer of technical papers (which simplify the use of the products), training of the client's employees, maintenance during the warranty period (and after it).

Semi-legal forms competitive rivalry implies:

economic espionage;
bribes to officials in the state apparatus and in rival companies;
illegal transactions;
activities to restrict competition. Here the firm has at hand an extensive arsenal of methods, the use of which can lead to the dictates of a monopolist company in the market. These include, for example, the activity of imposing intra-brand standards, promotion of convenient conditions for the sale of rights to trademarks or patents.

The most common forms of non-price competition

The most common forms and methods of non-price competition are:

1. Product differentiation

The purpose of product differentiation is to offer the buyer products of various types, styles, brands. This, of course, gives the buyer serious bonuses, expanding the choice. However, pessimists warn that product differentiation is not an absolute good. The rapid growth in the number of product names often leads to the fact that the buyer cannot make the right choice, and the buying process takes a long time.

Differentiation of goods is a kind of reward for those negative phenomena that are inherent in monopolistic competition.
Types of differentiation:

Product differentiation - production of goods of higher quality and more attractive outwardly than those of competitors. Regarding typified products (petroleum products, metal), there is almost no possibility of product differentiation. With regard to fairly differentiated goods (electronics, vehicles), this tactic is a matter of course.
Service differentiation - consists in providing a service of a higher class compared to competitors. This can be installation and after-sales service, speed and safety of deliveries, training and advice for buyers.
Differentiation of personnel - striving to ensure that the employees of the company do their job more productively than the employees of the competing company. Team members must have such qualities as friendliness, professionalism, commitment.
Image differentiationconsists in working on the image, style of the company and (or) its products in order to highlight their best sides in comparison with competitors and (or) their offers.

2. Improvement of products and services offered

Another method of non-price competition is the improvement by competitors of the goods and services offered. Improving the quality or user parameters of products leads to increased sales. Competitors who don't care about improving their product step aside. This route of competition leads to favorable consequences, the main one of which is customer satisfaction. In addition, other firms are also beginning to take steps to offset the temporary success of a rival, which contributes to scientific and technological progress.
Competitive companies are looking for funds to improve the product or to create a new position. All these measures provide an opportunity to strengthen production and increase profits.
Some companies, instead of competing honestly, conduct imitation (imitative) activities. More often than not, they stop at minor product upgrades. It's about an external effect. Such firms pass off seeming changes in the product as real, and also introduce obsolescence into the improved product. This approach can lead to massive customer frustration.

3. Advertising

According to foreign researchers, goods go from manufacturer to buyer a path that can be illustrated by the formula:
commodity + distribution + scientific activity + resellers + transport + advertising \u003d sale
So, advertising is an important element of the sales process and one of the key factors in the market for non-price competition. She solves a number tasks:

provides the customer with product information;
increases the demand for products and forces to increase the pace of its manufacture. It is not uncommon for a manufacturer with a small income to raise the level of sales by advertising in non-price competition, which leads to a large income;
increases competition;
enables the media to be independent, bringing them a certain profit.

Advertising reduces sales-related costs... Firstly, advertising promotes faster turnover of goods. Secondly, it makes products different from similar ones. This allows buyers to track the cost of products in various stores and thereby restrain sellers' arbitrariness in setting a margin. Products that are smartly advertised will pass through distribution channels with minimal markups.
Advertising uses such instrumentslike: media, outdoor facilities (stands, showcases, signs, neon). A separate place is occupied by advertising using packaging.

4. Other methods of non-price competition

The group of non-price methods includes: providing a wide range of services (including employee training), free service, handing over a used product as a start-up fee for a new one, and supplying equipment on a “finished product in hand” terms. Reduced metal consumption, no negative impact on the environment, reduced energy consumption and other similar parameters have become today the main in the list of advantages of goods or services.
At the moment, many firms conduct marketing research... They make it possible to find out the wishes of the buyer, his opinion about various products. This knowledge helps the manufacturer to design the market environment and reduce the likelihood of misses.

Non-price competition methods: 3 main groups

Non-price competition techniques are divided into several groups.
First group - these are techniques aimed at achieving competitive advantage by improving various parameters of products.
These include:

launch of new items of goods on sale;
introduction of products that have new consumer characteristics, for example, higher quality, improved appearance, more attractive packaging (this process is called differentiation of consumer properties of goods).

Such techniques are used in cases where:

the company wants to improve the consumer characteristics of its products;
the company wants to increase the market segment of the manufactured goods;
the company wants to become known through a wide selection of manufactured products in a limited market sector;
the company is working on the timely introduction of new service conditions (sale and after-sale) in order to interest new groups of customers, to force them to purchase products more often and pay a lump sum for more items (most often with the help of large discounts and promotions).

Second group - these are techniques to stimulate the buyer to buy. Most often these are short-term promotions, sales, etc. Incentive purposes in this case, there is an increase in the number of customers or an increase in the number of goods that the same customer purchases.
By means of stimulating sales for consumers are:

sweepstakes and lotteries, discounts, coupons, promotions;
trial samples (samplers, testers, as well as tasting);
contests and games;
sales;
various "label events";
consumer clubs.

The sales agent is the link between the manufacturer and the buyer. It is necessary to stimulate a sales agent in order to form a bright image of the product, make it easily recognizable and widely known, and increase the number of positions in the trade network. It is equally important to "warm up" the agent's interest in the large sales of a certain brand.

Sales incentives various awards and presentations, all kinds of compensation for advertising expenses, trade fairs, prizes, sales brochures, souvenirs, etc.
For the successful operation of the company, it is necessary to constantly look for alternative ways of selling products, as well as index the amount of discounts in accordance with the current situation on the market.
Third group - It includes advertising techniques and public relations.

Nevertheless, non-price competition works primarily by improving the quality characteristics of goods and production technology, modernization, patenting and branding, as well as competent "service" of sales. This type of competition is based on the desire to get a part of the industry market (or a significant segment of it) by producing new products or improving already known products.

Distinctive feature of non-price competition- a variety of methods. But they all apply to two objects of rivalry: a set of consumer properties and their level of quality. When the object of rivalry is a set of consumer properties, the focus of the struggle is the form of the product, its design and packaging, the form and method of sale, advertising, and pre- and post-sale services provided to the buyer. The action vector of non-price methods is aimed at attracting new customers by expanding the set of consumer properties of the product (Fig. 2.2a). Its scope is the establishment of control over demand, and the result is a redistribution of the market among competitors. When product quality becomes the object of competition, methods are applied that reduce the elasticity of demand (Figure 2.26) by strengthening customer loyalty to the brand through quality: technological excellence, reliability, extended service life, prestige, etc. In this case, the vector of rivalry, which is also the criterion of success, is to ensure the best price-quality ratio. When a flower shop owner expands its assortment, it is a factor in attracting new customers. When he also provides an additional service, for example, decorates a bouquet, this strengthens customer loyalty, resulting in a decrease in the elasticity of his demand.

The firm uses non-price competition methods in two cases. When the type of market demands it and when the firm seeks to protect itself from the pressure of price competition. The “protective function” of non-price competition is associated not only with the ability to prevent a “price war”, but also with the relative stability of the competitive advantage gained through the use of non-price methods of competition. Price control methods provide short-term gains due to the ease with which they are copied. In the case of product differentiation, it is not easy to replicate the achievements of the pioneer, which gives him the advantage for a longer time.

Fig. 2.2.

The main danger arising in the transition to non-price competition is the unpredictability of the market demand reaction to the seller's innovations. At the same time, despite the variety of methods, the sphere of action of non-price competition is narrower than that of price competition in the sense that the latter, although with different intensity, operates in all markets, while non-price competition - only in markets where they have place of differences in consumer preferences.

The role of non-price competition related to its impact on the industry market, competition and welfare. Non-price competition is a way of segmenting the market and enhancing the market power of firms at the same time. In this sense, it can contribute to both a decrease and an increase in market concentration. Causing qualitative changes, it is an instrument of "creative destruction" and a converter of the competition microsystem. Its merit lies in the fact that it generates these changes endogenously, due to the internal forces of competition. Growth in income spurs innovators to innovate, and growth in their competitiveness encourages innovation efforts by competitors. By imitating (copying and imitating) the innovator and striving to surpass him, competitors expand the space of "creative destruction", creating conditions for the emergence of new markets. I. Schumpeter was right in arguing that “contrary to textbooks, in capitalist reality, another (non-price - Yu. T.) competition based on the discovery of a new product, a new technology, a new source of raw materials, a new type of organization (for example, the largest firms ). This competition provides a decisive cost reduction or quality improvement; it threatens existing firms not with a slight reduction in profits and output, but with complete bankruptcy. "

Non-price competition is a factor in increasing social welfare, since, by expanding the product range, it provides a fuller satisfaction of various consumer preferences. The intensity of non-price competition is a very reliable indicator of the level of well-being of the population and is always more intensive in countries with a high level of population income. However, the desire of firms to differentiate their product can lead to excessive product diversity, causing losses. But product differentiation can also harm consumers, increasing their costs, on the one hand, due to the difficulties of compatibility of products from different sellers, and on the other, because of the growth of the market power of sellers. Standardization, such as the introduction of a common European standard for chargers for mobile phones, can alleviate these problems. But standardization can become an obstacle to justified product differentiation, and therefore a brake on the development of competition. The risk of its use arises especially in the context of rapid technological changes, where the standard can become a means of imposing an ineffective technological solution. The dominant firm always strives to impose its own standard, while the smaller firm has more incentive to create a compatible product.

Currently, the object of non-price competition is symbolic value (sign-value), which means the additional cost that the buyer is willing to pay for the possession of a product of a strictly defined trademark or brand. The source of its formation is not the consumer parameters of the product, but the buyer's subjective perception of the product as “branded”. Products compete with each other as symbols. "The image features of the product, created not in production, but in the information and communication sphere, become defining. Competitive advantages are gained through the active use of information differentiation, which serves as a source of formation of symbolic value. A distinctive feature of competition based on symbolic value - high intensity and uncompromising. The high intensity of the struggle is due to the specifics of the market of symbolic value, which operates according to the principle: “the winner takes everything.” Given the unpredictability of the results of information differentiation, it is unprofitable for competitors to limit the volume of product supply, which will also increase the intensity of competition. with the specifics of demand for “goods-symbols.” The status of symbolic value gives the product unlimited power over the consumer. naturally leads to its complete depreciation and to an avalanche-like drop in demand for it.

Advertising is a tool for creating symbolic value, which has become the most active method of information differentiation and non-price competition. For a firm, it is a method of promoting a product by maintaining interest in it. Its task is, by influencing demand and its elasticity, to ensure price control, avoiding price competition. For competition, the importance of advertising lies in its ability 1) to smooth out the degree of difference between products in real product differentiation and 2) to enhance such differences in phantom (imaginary) differentiation. The impact of advertising on competition is assessed in different ways. Some, such as G. Becker and J. Stiglitz, see her as an informant. Others, like N. Kaldor and J.K. Galbraith is a tool for manipulating consumer preferences. The point, however, is that competition even turns the informational component of advertising into a way of influencing the buyer.

It is not the fact of the impact of advertising that is important, but its consequences for competition. Usually, the influence of advertising is examined in terms of its impact on the market structure (concentration, freedom of entry, degree of product differentiation) and signaling about the quality of the product. Empirical studies show that the impact of advertising depends on the specifics of the market (volume), the type of buyer (intermediate, final) and the type of product (sought or tested). In large markets, where advertising costs drive economies of scale, aggressive advertising enhances the advantages of large firms and can create barriers to entry for new firms, which would not be the case in smaller markets. Intermediate buyers are weakly exposed to advertising and here its influence on competition is small. For the tested good, the quality of which is determined in the process of consumption, advertising can serve as a signal of quality. In this case, by ensuring repeat sales, it can cause a narrowing of the food variety, an increase in entry barriers to the market and a decrease in the intensity of struggle. It is impossible to unequivocally assess the impact of advertising on competition. Even a steady increase in advertising costs cannot change this conclusion, since their growth, on the one hand, indicates that rivals view advertising as a way to protect themselves from competition, and on the other, it also indicates an intensification of the struggle for competitive advantages.

The situation is different in markets where symbolic value is the main source of advantage. Satisfaction of physiological needs leads to an increase in the proportion of needs that are of a psychological nature and therefore strongly amenable to control by influencing the psyche. Advertising is becoming the most important way to manage demand. When the price is not of decisive importance for the buyer, the product acquires the properties of the “sought after good”. But not because of the value of the product for the buyer, but because of the insignificance of the consequences for his budget of the wrong choice. The buyer becomes prone to spontaneous, rash purchases. With this type of consumer behavior, advertising ceases to be a signal of product quality, and ensuring repeatability of purchases ceases to be its main task. If the criterion of success in the struggle is not the use value, but its perception by the consumer, then the advantage is embodied not in the price and not in the quality, but in the image of the product, and the struggle unfolds around its “images”. Symbols are unstable. Therefore, the focus will not be on retention, but on attracting customers: the main thing is to ensure large volumes of initial sales without counting on repeat purchases.

Despite the fact that symbolic value and advertising increase the intensity of rivalry among sellers, the competition developing on their basis carries negative consequences for society. First, it leads to the irrational use of the firm's resources, focusing on the creation of not genuine, but symbolic values \u200b\u200bthat do not bring real benefits to consumers. Secondly, increasing the asymmetry of information, it leads to a decrease in the efficiency of the market as an information system. Third, it reduces the effectiveness of competition as a mechanism for transferring knowledge, since it creates false focal points for both buyers and rivals, thereby distorting the transfer of knowledge. Finally, it leads to a decrease in social welfare due to a decrease in the total volume of utility due to the replacement of genuine values \u200b\u200bin the consumer set with imaginary ones. This allows us to assert that competition based on symbolic value, deliberately distorting information about the value of the product, is the most cynical method of realizing selfish interests.

It is generally accepted that the stability of non-price competition is due to the presence of product differentiation, which deprives competitors of the possibility of transition to the price form of competition. However, as practice has shown, the stability of non-price competition is determined not by the presence of product differentiation, but by its type. The likelihood of a change in the form of competition is high with horizontal and low with vertical product differentiation. In the case of horizontal differentiation, the form of competition is unstable due to the fact that price remains an active instrument of market redistribution, since a rival can entice buyers by offering a lower price. In the case of vertical differentiation, where differences relate to the level of product quality, the segmentation of demand is more pronounced, which means that the form of competition is more stable. In this case, a low price with a low quality of the product does not ensure the transition of consumers to a higher quality product. But sellers of a high-quality product can use price as a tool to displace low-quality product from the market, if this is not prevented by the level of difference in their production costs. At the same time, the market with horizontal differentiation is characterized by greater intensity of both price and non-price competition.

Competitive practice testifies to a constantly repeated transition from price competition to non-price competition and back. This is the dialectic of the competitive process. Acting as incompatible and opposing parts of it, its price and non-price forms complement each other, thereby ensuring the flexibility of the competition mechanism and the continuity of the competitive process. But the competitive process is not a circular motion. Any non-price form that arises on the basis of price competition, transforming again into a price form, does not represent a return to its previous state, but a transition to a qualitatively new state, which, embodying the previous principles, will differ in the conditions of its existence and methods of implementation. Remaining essentially unchanged, each form with each new transition is reproduced on a new material base, marking a change in the conditions of supply and demand. At the same time, transitions to a non-price form of competition are leaps that reflect qualitative shifts in the competitive process. Price competition unfolds on the basis of the jump that has occurred and should be seen as a period of preparation for the next jump. Such periods are getting shorter and the importance of price methods of competition is gradually decreasing. But the situation can change radically if the ideology of consumerism1 is replaced by the ideology of “responsible” consumption, arising from the awareness of true consumer values \u200b\u200band the need to limit consumption.

Schumpeter J. Capitalism, Socialism and Democracy. - M .: Economics, 1995 .-- P. 128.
The concept of symbolic or sign-value was proposed by J. Baud-riillard to reflect a change in the consumer's behavioral guidelines, the role of which began to be played not by the real consumer properties of products, but by their imaginary ones, but which are perceived by the consumer as value. Therefore, the term perceptive (to perceive) value is often used as an analogue.
"Today's consumption - if the term has a different meaning from what vulgar economists give it - is precisely defined as the stage where goods are produced as symbols, as symbolic values, and where symbols (cultural) are produced as goods." (Baudrillard J. System of things. - M .: RUDOMINO, 2001).
“The institutions of modern advertising and trade ... cannot be reconciled with the concept of independently forming desires, since their main function is to create desires, that is, the formation of needs that did not exist before ... needs can be provoked by advertising, enhanced by trade and formed by careful actions of the persuasion mechanism ". (Galbraith J. K. The Affluent Society. 2nd ed. London: Hamilton, 1969.-PP. 150-152); Galbraith JK The new industrial society. - M .: Progress, 1969. Ch.XVIII).
Shmalenzi R. Advertising and market structure. // Milestones of Economic Thought. T. 5. - SPb.: School of Economics, 2003. - S. 179-211.
4 J Milgrom P., Roberts J. Product quality price and advertising signals. // Milestones of economic thought. T. 5. - St. Petersburg: School of Economics, 2003. - S. 212-246.

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Competition methods are methods common in the economy that allow an enterprise in market conditions to attract the attention of customers, develop, and successfully exist. It is customary to divide the currently known methods into economic and conditional economic. The former presuppose the appropriate methods of behavior, and the latter, the remaining possible attempts to influence the position of the company at the moment.

Economic methods of competition

There are two key approaches: playing with costs, with prices. Influence through prices is an option where the company resorts to a floating pricing policy. The main task is to make the opponent leave this niche. Often, in order to achieve the goal, the enterprise sets the price of the goods significantly below the norm. The method of competition gives the greatest effect if the decline occurs sharply, unpredictably for competitors. The company adheres to this pricing policy until it succeeds in squeezing a competitor out of the niche. Equally satisfied with the options when the rival completely ceases to operate, and when he chooses a different direction as an attempt to avoid the barony.

If the applied methods of competition gave the desired result and the rival was removed from the market, prices can be restored to their previous level. In some cases, an enterprise can afford to raise its value above the previous standard. This makes it possible to compensate for the losses with which the period of competition was associated.

Pros and cons

The weakest aspect of the described approach to eliminating rivals is the fact that the opposite side can also resort to a similar line of behavior. Competition in the market is often unpredictable, and an accurate assessment can be given in advance only if there is voluminous and correct data on the financial condition of a competitor.

The winnings remain for those who have a large supply of money for the period of the beginning of the "battle". As soon as the first signs of competition appear in the niche where the company operates, it is necessary to tune in to a struggle, from which only one can emerge victorious. However, as practice shows, only large monopolies are currently seriously competing in this way, while most of the medium and small companies simply adjust to the generally accepted price level. For such market participants, other forms and methods of competition are relevant.

Cost as a way to deal with the rival

The main idea of \u200b\u200bthis method of competition is to reduce to a minimum the costs associated with the production and sale of products. Enterprises resort to all legal instruments that allow them to at least slightly reduce the cost component of their business. It is taken into account that making the same product in different ways can be very costly, or vice versa. The technological features of production, automation of working lines, and streamlining of the in-line workflow have an impact. It becomes very important for an entrepreneur to establish an organized working day - this is one of the methods of non-price competition.

In an effort to minimize costs in the production and sale process, many are trying to use the most inexpensive raw materials. This often leads to a low quality of the finished product, which, as practice shows, does not stop firms, which plunged headlong into the methods of competition in an attempt to regain their place in the market.

At any cost!

A widespread practice of reducing the costs associated with the production and sale process is the attraction of cheap labor. This option often runs counter to the current legal regulations of the country. This is not only about the law on the protection of competition, but also about the rules of employment. Businesses hire illegal, semi-legal workers who are willing to work hard full-time jobs on low wages. However, you shouldn't expect such employees to work really well, producing quality goods.

Both the recourse to cheap labor and other methods of non-price competition can reduce the costs of the enterprise. This means that by adhering to prices equal to competitors in the vastness of the market, the company can count on large profits. This methodology is quite typical for both small and medium-sized businesses.

Conditional-economic: considering in more detail

There are several methods combined in this group of increasing the competitiveness of the enterprise. If the previously described allowed to influence the opponent, then this group is developed on the idea of \u200b\u200battracting more buyers.

The simplest method, which is completely subordinate to the law on the protection of competition, is legal, correct and does not lead to an understatement of the quality of services, is to expand the range. The company thus forms a line of proposals so that the client can find anything for himself, regardless of wishes, no matter how specific they are. This applies not only to names, but also to packaging. For example, a classic carton of milk is one liter in volume, but to meet the needs of a certain category of customers, containers of 100 ml, 330 ml, half a liter or one and a half are produced.

Choice and pricing policy

As they say in the course of economics in any specialized educational program, it is possible to apply knowledge of the concept, types of competition to improve the position of a company in the market. How does this happen in the above approach? As we found out, the sale of a product that is in stock in different design options is always greater than that that is only in one form.

This type of competition is beneficial for the enterprise, as well as for the client: prices for small packages can be set that will be higher in terms of the net weight of the product. The firm makes a profit, the client gets the product he needs. Additional tools for this type of competition (the concept was given to him above) is a change in the design solution. The more modern, the brighter the product looks, the more eagerly people buy it. It is worth considering fashionable music, popular films - in a word, even aspects of social life that are not directly related.

Non-price methods involve changing the properties of products, imparting qualitatively new characteristics to them, creating new products to meet the same needs, offering products that did not exist on the market, improving the range of services associated with the product (demonstration of the product, extending the warranty period, etc.) ... An important factor of non-price competition is efficiency and minimization of delivery times, which can be observed in the conditions of delivery of the required products of a given quality at the place and time indicated by the contractual terms, taking into account the minimum total costs of transportation of products. It is impossible not to single out such a factor of non-price competition as the creation of a powerful sales network and service department.

TO non-price the following groups of methods of competitive actions belong.

The first group - methods of ensuring the organization's competitive advantages by changing for the better various consumer characteristics of goods and services in order to increase consumer value:

Introduction of new products (product differentiation);

Introduction of goods with new consumer properties, improved quality, more perfect design, more beautiful packaging (differentiation of consumer properties of goods).

The second type of differentiation will apply when:

The organization strives to expand the list of consumer properties of goods;

The organization is trying to expand the list of market segments of manufactured goods;

The organization intends to achieve recognition in a relatively small market sector through the diversity of the products offered;

The introduction of new forms of sales and after-sales services to attract new categories of consumers, to encourage more frequent use of products and one-time purchase of more products.

The second group is sales promotion methods. These are short-term measures of a monetary or material nature that encourage the purchase of goods.

Sales promotion has a multi-purpose focus. The choice of target depends on the target of the upcoming impact - the consumer or the reseller.

The consumer has the greatest importance, and the whole marketing policy is reduced to the impact on the consumer. The goals of incentives in this case are reduced to an increase in the number of buyers or an increase in the number of goods purchased by the same buyer. The means of stimulating sales for buyers include: samples for testing, awards, lotteries, price discounts, trade discounts, coupons, sales, games and contests, consumer clubs, “label events”. A commercial intermediary, being a natural link between a producer and a consumer, is a specific object of incentives, which in this case performs regulatory functions. In this case, the goals of incentives can be aimed at: - increasing the amount of goods entering the trade network;

Increase the interest of the intermediary in the active sale of a particular brand, etc.

Sales promotion tools for resellers are: bonuses and gifts, trade bonuses, compensation for advertising costs, prizes, exhibition sales, souvenirs, trade brochures.

An organization should constantly compare and analyze alternative options for selling its goods, revise prices and discounts depending on changes in the market.

Advertising is information about individuals or legal entities, goods, ideas and undertakings disseminated in any form by any means, which is intended for a certain circle of persons and is intended to form or maintain interest in these individuals or legal entities, goods, ideas and undertakings and to promote implementation goods, ideas and undertakings.

Radio advertising is an irreplaceable part of our daily life. However, its main difficulty lies in the fact that it is rather difficult to single out potential buyers from this audience and make them listen to exactly the program in which the advertisement is running. Feelings can be influenced with appropriate melodies, noises and voices that draw exciting mental images. Radio uses 3 main tools to convey a message:

Music for better memorization;

Sound effects used to convey the setting in which the action takes place.

Advertising success in newspapers and magazines is determined by the correct choice of publication, good text, catchy text design, good placement of the text on the page of the publication, the right choice of publication timing and repeatability. In order to choose the most suitable publication, it is necessary to compile a list of all newspapers and other periodicals capable of reaching the desired group of potential buyers.

In outdoor advertising, the repeatability factor plays the main role, therefore the budget should be drawn up on the basis of the need to purchase specially selected places that regularly come to the attention of a large number of people.

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