Four Levels of Competition (Kotler)

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Four Levels of Competition (Kotler)
Shubhi Kotiya, Management Consultant, Germany, Premium Member
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 exa (...) Read more? Sign up for free

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