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BA 420 Marketing
Who's the Competition?
Who or what is the competition for Gart Sports? Most people would say "Other Sporting Goods Stores." They are right, but only half right. The competition may be more pervasive than you think.
When a firm defines a target market, the firm also inherits a group of competitors. It is important to monitor the actions of competitors. Soooooo.... Who exactly are the competitors?
#1. Brand Competitors. Firms that market products with similar features and benefits to similar customers at similar prices. These products are considered to be close substitutes. For example, Coke and Pepsi, Nike running shoes and New Balance running shoes, Green Giant canned corn and Kroger canned corn.
#2. Product Competitors. Same product class, but different features, benefits, and prices. Example: coffee vs. pop. Healthy Choice diet cookies and Oreo cookies.
#3. Generic Competitors. A very different product that satisfies the same basic need. Example: Visiting Los Angeles via plane or train. Or.... Entertainment: going to a Denver Bronco's game or renting a movie.
#4. Total Budget Competitors. Competition for the limited financial resources of a customer. Example: Trip to Disneyland or replacing a broken refrigerator. Gambling in Las Vegas or buying clothing for your children.
What To Do:
For each of the following products or firms, identify other products or firms that may possibly be the competition. Include an example from each class of competitor. For example: Sony DVD players is the first product. List 4 examples of competition, one example from each category of competitor.
a. Sony DVD Players
b. Britney Spears
c. Home Depot