Definition and types of competition

In the General system of the marketing firm, which operates in the market largely not in itself, but given the brand the totality of the information flows and relationships that link it with certain actors in the market. Different environmental conditions, which has a particular firm, call it the marketing environment. Marketing environment of each individual firm consists of a plurality of different active forces and actors that operate outside the firm and influence the possibility of management using services marketing to maintain and install with all sorts of target customers any relationships enough for a successful cooperation.

This marketing environment of each firm is composed of the macro environment and microenvironment. The microenvironment represents the various forces which have direct relevance to the firm and its capacity to service potential customers. Macro environment forces seem to be a bit more extensive social plan, which is constantly have an effect on the microenvironment.

Thus, we can say that competitors are an incredibly important component of the marketing micro-environment of each firm, and is important to all kinds of competition. If not to consider such an element as its competitors, it is about developing any reasonable strategy or tactic to ensure the functioning of the company can not be no speech.

Today, there are quite a lot of various definitions of competitors, however, we consider only the most common of them, as well as the nature and types of competition. As mentioned before, the competitors represent some of the subjects of the marketing system, which are capable of their own actions to influence the choice a firm different suppliers, markets, the formation of a range of intermediaries, as well as to the whole complex undertaken by the firm's marketing activities. Moreover, it is worth saying that different types of competition have different effects. Considering the competitors, thus, we can say in other words that they are – that firms have partially or even completely the same niche. Under the niche in this case means some combination of segments a particular market, for which suitable services or those goods, which are produced by this company.

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The Presence of competing firms gradually rise to the phenomenon of competition. From the point of view of Economics it is worth noting that the competition – some economic process of interrelation or interaction of the struggle of some manufacturers or suppliers in the implementation of certain products, as well as to some extent the rivalry between different producers of a particular product for the most favorable conditions of production. It should be said that accounted for all types of competition, not relying on any one of them.

The Market competition today is developing mainly only in the affordable segment of the market. That is why one of the most popular methods resorted to by modern firms is to dramatically leave on is not available for other competitors in the market segments. Types of competition in the economy are as follows –

• Price (where firms compete based on price).
• Price (where firms compete on the basis of the quality of use value).

Price competition in our time dates back to the times of a fully free market competition between companies even when different homogeneous products in the market, offered at totally different prices.

The Decline in prices was at that time the basis by which each merchant could distinguish his goods, thus attracting the attention of many consumers, thereby earning the desired market share.