Fw Market Place Competition

7/29/2019 Fw Market Place Competition

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MARKET PLACE

COMPETITIONBy Francis Wachira

Part one


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RECAP

We have established certain needs in themarket place.

We have come up with something themarket will want to use to satisfy thoseneeds.

We have done a business plan (includesmarketing financial et cetera) and we havestarted selling our products.


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THE GENESIS


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COMPETITION

1) First we may not have correctly identifiedthe need. Some needs are hidden

E.G. Why do people go to the Intercontinental?

Why do people go to K-street?

Why do people read Playboy magazine? Why do people go to church?

Why do people fly first class?


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2. The need has different products that cansatisfy it. This may vary from person to

person, time to time, place to place etcetera.

With the passage of time new products

may come and satisfy the need better.


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POSSIBLE SATISFIERS

OVER TIME


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HUNGER

Boiled sweet

potatoes

Githeri Mukimo

Ugali & beef stew

Rice & beef stew Brown rice with

fish fillet


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THIRST

Water

Porridge

Black or white tea Cappuccino

Soya drink


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TRANSPORT

Bicycle matatu

Chopper

Hummer

Ship


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COMMUNICATION

Talking Drums

Analogue radial

phones Digital phones

Mobile phones

Pagers


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3. Even where we have identified the rightcore product to satisfy the need

competition can come in form of theactual (tangible product) and or theaugmented product. Branding comes

along to complicate the rules ofcompetition by unveiling the ground.


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LEVELS OF

COMPETITION


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1) SPECIFIC

The product faces competition from anexact equivalent. In classical, specific

competition the product may come fromthe same manufacturer.

Here the augmented product in terms of

ambience, customer care, promotions etcetera will be the basis of your reaction.


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Examples

Safaricom scratch cards

Mobile Phones

coke


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2. GENERIC

The product faces competition from closesubstitutes capable of satisfying the need

but not in exactly the same way. The strategy here would involve trying to

show your product as the best, if not all

the time at a particular time for a specific(substitute) need. Sampling can be a goodway to initiate new customers.


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Examples

Alcoholic drinks

Soft drinks

food

Transport

Clothing

EducationMSK Diploma

DiplomaUniversity degree


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3) TERTIARY COMPETITION In this form of competition the product

competes for the shilling in a potentialcustomers pocket. The idea is to ensure that thecustomer does not run out of your share of

his/her money by wasting it on the wrongthings. The product will thus have to impress thecustomer on how important it is .

Importance in the customers mind could bebecause the product is essential or a fad item orthe product develops an emotional relationship.Can you get the item to get on the regularshopping list.

Good marketing skills can work wonders.


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Examples of products fighting for

recognition

toothpicks

Air fresheners

serviettes

Wet wipes


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Examples of things that can sufferfrom wrong allocations

ClothingSchool fees

Rent


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PART 2


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PROFITABILITY.

In perfect competition, any abnormal profits cannot be sustained.

Prices gradually drop to an equilibrium pointwithin a given time and geographical area.

There is a high level of movement withincompanies folding up and new ones trying to

come in. Those who are able to survive usuallybecome Hardened

DEALING WITH COMPETITION IN


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DEALING WITH COMPETITION INA PC MODEL.

Augmented product Customer service, postsales follow up.

Location Ideal? Rent vs returns?

Opening, closing hours

Product variety

Backward, forward integration

Above the line promotion

Below the line promotionsThe ability to do a lot of promotion is usually

limited to the fact that margins not very high.

Documents

Fw Market Place Competition