Competition in business is the contest among the companies selling similar products or services and targeting the same target audience to get more sales, increase revenue, and gain more market share as compared to others.
When these businesses compete with each other, consumers get the best possible prices, quality, and quantity of goods and services. If we’re competitive, we can acknowledge and be satisfied with what we’ve achieved but remain motivated to always improve. If we fail at something, we can use it as motivation to keep going. One important benefit of competition is a boost to innovation. Competition among companies can motivate the invention of new or improved products or more efficient processes. Competition in business matters a lot because it pushes individuals, firms, agencies and markets to make the best use of their resources and to think outside the box to develop new ways of doing business and winning more customers.
There are various types of competition as well:
Direct competitors are companies that sell the same products to the same audience and compete for the same potential market. An excellent example of direct competitors is Coca-Cola & Pepsi’s business rivalry. Both of these companies – Operate in the same industry (Drinks & Beverages), offer similar products (soft drinks) and satisfy the same need. Use same channels of distribution (direct store delivery (or DSD), customer warehouse and third-party distributor networks), and target the same audience.
Indirect competitors are those that sell services and products that are not same but satisfy the same customer needs. An example of indirect competitors is KFC and Pizza Hut. Even though these two vendors sell products that are different, they are considered to be competitors as they –
- Satisfy the same need
- Operate in the same industry
- Target the same audience
1. How do you face rising competition in your business?
Always, do the market research :
Using these online tools, like Facebook analytics, Google Analytics your company will be able to better understand what ultimately triggers your customer to make a purchase.
Examine what your competitors are doing:
Look to see what your competitor doesn’t do, and then try to fill in that part of the market. You can use your differences to learn how to handle competition in business. After researching, understand what makes you different from the competition.
Send a clear message:
Customers want to know what you can do for them that no one else can, and that is how you will win their business. Your branding should support all messaging; leaving no question your company is linked to the message.
Set competitive pricing:
One of the easiest ways to beat your competition is to offer more affordable pricing. To determine the ideal price point, you need a clear picture of what your competition’s goods or services are priced at.
2. Product promotion alone is not enough. You need to build your brand in the long term.
The whole purpose of promotion is to reach the desired consumers and persuade them to buy. A company may have a well-designed product offering, with a price and distribution system appropriate to its target market. Promotion is responsible for awakening and stimulating consumer demand for the product. Promotion, in its broadest marketing sense, encompasses all selling activities—advertising, personal selling, sales promotion and public relations.
Marketing must help Brand building. The explosion of digital technologies over the past decade has empowered consumers with tools and platforms that make it incredibly easy to find what they want when they want it and getting it delivered to their doorsteps. The best a company can do is focus on activities that build lasting value exchange by delighting customers to influence their brand reputation. To build trust and a relationship between you and your customers — You must be able to articulate your brand values and aspirations to customers that share the same or similar values in simple and clear terms.
Your brand mission and values must be understood inside and out, before advertising or promoting your business.
3. Branding is an image with a unique concept. It’s a perception based on deep knowledge with the application of creative wisdom:
It is the process of building a story brand, creating a strong, positive perception of a company, its products or services in the customer’s mind by combining such elements as logo, design, mission statement, and a consistent theme throughout all marketing communications. Effective branding helps companies differentiate themselves from their competitors and build a loyal customer base.
By carefully constructing your brand through stories, relationships, marketing messages and visual assets, you have the opportunity of shaping your customers’ expectations and creating a unique bond that goes beyond the buying-selling relationship. Good branding is strategic, while marketing is tactical. When you establish the higher objectives and clearly define your brand promise, you can start crafting a marketing plan that’s geared towards achieving those goals. You can create a brand based on quality, price, reliability, a warranty, customer service or other factors.
Brand perception is the sum of feelings a consumer has about a brand. These thoughts and feelings happen when a consumer is aware of the brand, and what follows when that consumer hears, sees, or interacts with the brand and its product. A cost effective way to build a brand faster is through video marketing. Video creates a positive impression because seeing is believing.
Once consumers formulate a perception in their minds, whether positive, negative, or neutral, it’s hard to change their beliefs. That’s why companies are trying hard to measure brand perception on their own. If a buyer has an option of say five competing suppliers, who will they choose. Supposing all the purchase parameters such as quality, functionality, price, delivery and service support are equally comparable, whom will they choose. Obviously the best brand takes the cake.
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