Forms and methods of non-price competition: the introduction of new products, sales promotion, advertising and public relations. The role of advertising in shaping consumer product demand. Functions of advertising as a key element of the market economy.
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Размещено на

Tallinn University of Technology

School of Economics and Business Administration

Department of Finance and Economics

Chair of Economic Theory

Non-price Competition

Petrov Nikita

Supervisor: Tatjana Polajeva

Tallinn 2014



Table of Contents

• non price competition advertising
• Introduction
• 1. The essence of non-price competition
• 1.1 Methods of non-price competition
• 1.2 Forms of manifestation of non-price competition
• 2. Non-price competition on the example of "exclusive" company in Saint Petersburg
• 2.1 ISO9000 Certification
• Conclusions
• Refferences
• 

Introduction

Relevance of the chosen problem is that the market through three mechanisms - competition, supply and demand, pricing - leads the economic system in motion and gives it incentives for further development. Market forces of economic entities to engage in a competitive relationship and constantly supports competition between them. Action market mechanism stimulates entrepreneurs continuously develop new products.

Through market pricing mechanism continuously provides business information on changes in the market, the emergence of new conditions, etc. It affects all market participants, forcing weak entrepreneurs and rewarding the strongest using various methods of competition. Competition is effective mechanisms for competition in the market. It acts as a coercive power, forcing entrepreneurs to fight for an increase in return on capital by seeking new forms and methods of production, use of new technologies, new ways of organizing, managing the provision of new services. The purpose of the study - to explore the essence of non-price competition.

More effective and more modern form of competition is to fight for the quality of goods offered in the market. Placing on the market of higher quality products or new use-value complicates the response by the competitor, because " shaping " the quality goes a long cycle, starting with the accumulation of economic, scientific and technical information. As an example, the fact that the well-known Japanese company "SONY" VCR has been developing simultaneously with 10 competing destinations.

Important role of pre-and after-sales service plays for the buyer, because manufacturers need a permanent presence in the area of customer service. Pre-delivery service includes meet the demands of the terms of delivery: reduced regularity, regular deliveries. After-sales service, the creation of various service centers for the product purchased, including the provision of spare parts, repairs, etc.

Due to the great influence on the public media, press advertising is the most important method of competitive struggle, because through advertising can be a certain way to form an opinion of consumers about a particular product both for the better and for the worse

But the main advantage of non-price competition - this is the minimum cost spent to improve product quality and to create high-quality advertising company requires fewer resources than maintaining exhausting " price war "

The aim of the course work was to study the methods of non-price competition. For this purpose, the disclosure of the following tasks:

1) Consider the theoretical foundations of non-price competition:

- The essence of non-price competition;

- Product differentiation, its improvement and diversity;

- Methods of price competition;

2) To study the features of advertising and packaging, as factors of non-price competition

- Features of advertising;

- The impact of advertising on sales of products;

- Features of the package;

- Empirical evidence



1. The essence of non-price competition

http://economics.csusb.edu/facultyStaff/nilsson/personal/Capitalism%20Text/10-Competition.pdf

http://www.referenceforbusiness.com/encyclopedia/Clo-Con/Competition.html#b

http://www.chinaacc.com/upload/html/2013/06/27/lixingcundf971924b1cf4234b6603286cfc9151e.pdf

Non-price competition - competition method, which is based on no price advantage over competitors, and achieve a higher quality, technical level of technological excellence, with greater reliability, longer life and other more sophisticated consumer properties. Mainly improving product quality and conditions for its sale holds Non-price competition.

Improved quality can be in two main areas

1) Improving the technical characteristics of the goods;

2) Improving the adaptability to the needs of consumer goods. (service)

Non-price competition by improving the quality of products is called competition for the product. This kind of competition is based on the desire to capture some of the industry market through the issuance of new products or service that are either fundamentally different from the old model, or represent its upgraded version. Competition based on improving quality, is contradictory. On the one hand, is a way to improve the quality of hidden price cuts and market expansion on the other - the "quality" - a subjective assessment, which opens up the possibility of falsification of quality through advertising and beautiful packaging.

Non-price competition by improving the marketing of products called competition in sales conditions. This kind of competition is based on improving the service of customer service. Here is the effect on the consumer through advertising improve trade the establishment of service benefits buyers after the purchase of the goods, that is, during its operation.

Non-price competition is conducted by reducing costs, improving product and service quality, reliability, better payment terms, warranty and service, improved marketing techniques.

The more unique product offering, from the point of view of consumers, the more marketing freedom in setting prices higher than those of competing products. Each of the companies acting in the market tends to at least maintain the market share, which it occupies. Basic techniques are required for this competition - the price, the technical level and other quality indicators of the goods, delivery terms payment terms, scope and timing guarantees, and quality of service advertising and other activities.

Currently, many companies prefer to improve consumer properties of their product while maintaining or even some increase sales prices. With appropriate advertising such "hidden" discount from the price of goods is usually a positive reaction from the modern consumer, which is so often associated with low price poor quality product.

Capturing market penetration using it based on the development of a new branded product or exclusion of competitors offering similar products also occurs in non-price competition. In the world of success is determined by price competition (especially in Europe, North America, South - East Asia) technical level, product quality and reliability, proven certification in conventional centers, level of service and after-sales service, rather than low prices.

One of the challenges of the modern theory and practice of organizing the competitive activities of the participants of the market process is to establish the causes and diagnosis of qualitative and quantitative transition conditions of price competition in non-price competition.

Non-price competition raises a range of important problems of the market. Among them interbranch mechanism of profits in the form of input-output problems, overcapacity, the impact on sales of non-price factors preferences and choices, competitiveness, cost of consumption.

Non-price competition - competition method, which is based on no price advantage over competitors, and achieve a higher quality, technical level of technological excellence, with greater reliability, longer life and other more sophisticated consumer properties.

Significant role in non-price competition play: design, packaging, subsequent maintenance, and advertising

Non-price competition minimizes price as a factor in consumer demand, allocating goods or services through the promotion packing, delivery, service, availability, and other marketing factors.

For example, the company is trying to attract more potential buyers beautiful packaging or offer the consumer more favorable compared to the competitor conditions. The most important element of price competition is advertising. Advertising can help the company increase its market share and attract consumers.

When price competition sellers move consumer demand curves, emphasizing the distinctive features of its products. This allows the company to increase sales at a given price or sell at the initial amount higher.

The risk in this case due to the fact that consume...