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Competitiveness in marketing

Ivanov I.

Candidate of Science, associate professor of Novosibirsk State University
Novosibirsk

Competitiveness in marketing

Ivanov I.

Candidate of Science, associate professor of Novosibirsk State University
Novosibirsk

Abstract:

Background.Methods.Result.Conclusion.Background.Methods.Result.Conclusion

Keywords: Competitiveness, marketing.

The classes of economic theory show that competition is a cause of economic progress in a market economy.The price mechanism of this process is known.

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Marketing classicist Philip Kotler [1, p. 43] gives the following example: “Sellers often confuse need with demand. Drill bits manufacturer may assume that the user wants his drill bit, while in fact, the customer needs the well. In the case of emergence of other product, which will be able to drill a well better and cheaper, the customer will have a new demand (in this new product), but the need remains the same {well}.”

Fig.1. Title of the figure

In addition, the extra profit in market conditions stimulates the growth of production (consumption). However, the mover of this process is costs.

 (1)

P 1 – the price of the first product;
P 2 – the price of the second product;
P n – the price of the n-th product;
Q 1 – the quantity of the first product;
Q 2 – the quantity of the second product;
Q n – the quantity of the n-th product.

If these products are interconvertible, the market competition arises in the limited number of sellers (producers) and transforms in the competition between the products.

The list of references:

  1. Ph. Kotler Principles of Marketing. – M.: Progress, 1991.
  2. Modern dictionary of foreign words. – SPb.: Duet, 1994.
  3. Thompson A. A., Strickland A. J. Strategic Management. Art of developing and implementing the strategy. – M.: UNITY, 1998.

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