Includes all The actual and potential rival offerings and substitutes a buyer might consider

Four Levels of Competition (Kotler)

Competition, a critical factor in marketing management, comes from companies providing actual and potential rival offerings and substitutes that a buyer might consider. Although this may seem rather obvious, there's something more to it than you think.
Philip Kotler suggests to clearify the picture by distinguishing four levels of competition, based on the degree of product substitutability:

• BRAND COMPETITION: A company sees its competitors as other companies that offer similar products and services to the same customers at similar prices. Volkswagen might see its major competitors like Toyota, Honda, and other manufacturers of medium price automobiles, rather than Mercedes or Hyundai. Other examples are: Pepsi and Coca-Cola, various Unilever and Proctor & Gamble.
• INDUSTRY COMPETITION: A company sees its competitors as all companies that make the same product or class of products. Thus, Volkswagen would be competing against all other car manufacturers. Other examples: KLM and Singapore Airlines, Unilever ice cream and Mars ice creams.
• FORM COMPETITION: A company sees its competitors as all companies that manufacture products that supply the same service. They are competitors who compete for the same needs, although they are technically quite different. Volkswagen would see itself competing against manufacturers of all vehicles, such as motorcycles, bicycles, and trucks. Or speedboats and sports cars.
• GENERIC COMPETITION: A company sees its competitors as all companies that compete for the same consumer dollars. Volkswagen would see itself competing with companies that sell major consumer durables, foreign vacations, and new homes. Or foreign vacations and second homes.
  

Depending on the business challenges, financial goals, and circumstances, a company should look at all of these the levels of this competition.

Source: Philip Kotler, (2001), "Marketing Management Millenium Edition", 2001, 10th Edition, pp. 9-10

X

Welcome to the Competitive Environment forum. The topic being discussed here is: "Four Levels of Competition (Kotler)".

Will you join us? It's free.

Log in

The ________ holds that the organization’s task is to determine the needs, wants, and interests of target markets and to deliver the desired satisfactions more effectively and efficiently than competitors in a way that preserves or enhances the consumer’s and the society’s well-being.

Companies see ________ as an opportunity to enhance their corporate reputation, raise brand awareness, increase customer loyalty, build sales, and increase press coverage.

When a customer has a(n) ________ need he/she wants a car whose operating cost, not its initial price, is low.

During market segmentation analysis, the marketer identifies which segments present the greatest opportunity. These segments are called ________.

For each target market, the firm develops a ________. The offering is positioned in the minds of the target buyers as delivering some central benefit(s).

________ reflects the perceived tangible and intangible benefits and costs to customers.

If a marketer decides to use warehouses, transportation companies, banks, and insurance companies to facilitate transactions with potential buyers, the marketer is using what is called a ________.

_______ includes all the actual and potential rival offerings and substitutes that a buyer might consider.

The ________ includes the immediate actors involved in producing, distributing, and promoting the offering. The main actors are the company, suppliers, distributors, dealers, and the target customers.

The ________ process consists of analyzing marketing opportunities; selecting target markets; designing marketing strategies; developing marketing programs; and managing the marketing effort.

Related Questions

• Q28:

  Value reflects ________. A) the price consumers are charged for a product B) the cost of manufacturing a product C) the degree to which consumer demand for the product is positive D) the sum of the perceived tangible and intangible benefits and costs to customers E) all of the above

• Q29:

  A(n)________ need is a need that the consumer explicitly verbalizes. A) stated B) real C) unstated D) delight E) secret

• Q30:

  In response to giant retailers and category killers,entrepreneurial retailers are building entertainment into stores with coffee bars,lectures,demonstrations,and performances.They are marketing a(n)________ rather than a product assortment. A) experience B) customer value C) customer delight D) total service solution E) intangible benefit(s)

• Q31:

  A(n)________ need is one that motivates the consumer but that the consumer is reluctant or unwilling to explicitly verbalize. A) real B) unstated C) delight D) secret E) stated

• Q32:

  During market segmentation analysis,the marketer identifies which segments present the greatest opportunity.These segments are called ________. A) target markets B) primary markets C) tertiary markets D) demographic markets E) focused markets

• Q34:

  Industry boundaries are blurring rapidly as companies identify new opportunities at the intersection of two or more industries-this is called ________. A) globalization B) customization C) industry convergence D) heightened competition E) acquisition

• Q35:

  The identification and profiling of distinct groups of buyers who might prefer or require varying product and service mixes is known as ________. A) segmentation B) integration C) disintermediation D) targeting E) partner relationship management

• Q36:

  The ________ is a long channel stretching from raw materials to components to final products that are carried to final buyers. A) communication channel B) distribution channel C) supply chain D) service channel E) marketing channel

• Q37:

  In response to threats from such companies as AOL,Amazon.com,Yahoo!,eBay,E*TRADE,and dozens of others,established manufacturers and retailers became "brick-and-click" oriented by adding online services to their existing offerings.This process became known as ________. A) reintermediation B) disintermediation C) e-commerce D) e-collaboration E) new-market synchronization

• Q38:

  The ________ includes the actors involved in producing,distributing,and promoting the offering.The main actors are the company,suppliers,distributors,dealers,and the target customers. A) operations environment B) management environment C) strategic environment D) task environment E) tactical environment