Competitiveness– a property of an object that reflects the degree to which it satisfies a specific need in comparison with similar objects presented on the given market. This property determines the ability to withstand competition and win in the market. In relation to the economic sphere, competitiveness in its most general form can be understood as the possession of properties that create advantages for the subject of economic competition. The carriers of these properties - competitive advantages - can be various types of products, enterprises and organizations

To create a competitive enterprise, it is necessary not only to modernize production and management, but also to clearly know why this is being done, what goal must be achieved. The main thing in this case should be the ability to determine, as well as quickly and effectively use your comparative advantages in competition. All efforts must be directed to the development of those aspects that favorably distinguish the organization from potential or actual competitors. It is not without reason that many leading firms have formulated their comparative advantages in the form of slogans and rules that all their employees must follow.

The competitiveness of an enterprise is determined by the following factors:

§ quality of products and services;

§ presence of an effective marketing and sales strategy;

§ level of qualifications of personnel and management;

§ technological level of production;

§ tax environment in which the enterprise operates;

§ availability of funding sources.

The ultimate goal of every company is victory in competition. The victory is not a one-time, not accidental, but as a natural result of the company’s constant and competent efforts. Whether it is achieved or not depends on the competitiveness of the company’s goods and services, i.e. on how much better they are compared to analogues - products and services of other companies. In other words, competition between firms is secondary, as it manifests itself through the product. Competition between goods is primary, since it is determined in the market and determines the profitability and stability of the company’s position in the market.

Product competitiveness- this is a set of consumer properties of a given product, characterizing them

It is worth noting a number of specific features that reveal the essence of this concept:

§ competitiveness includes three main components. One of them is strictly related to the product as such and largely comes down to quality. The other is connected both with the economics of creating sales and service of a product, and with the economic opportunities and limitations of the consumer. Finally, the third reflects everything that may be pleasant or unpleasant to the consumer as a buyer, as a person, as a member of a particular social group, etc.

§ the buyer is the main appraiser of the goods. And this leads to a very important truth in market conditions: all elements of a product’s competitiveness must be so obvious to a potential buyer that there cannot be the slightest doubt or other interpretation regarding any of them.

§ each market is characterized by its own buyer. Therefore, the idea of ​​some kind of absolute competitiveness not related to a specific market is initially invalid.

Usually, the competitiveness of a product is understood as a certain relative integral characteristic that reflects its differences from a competing product and, accordingly, determines its attractiveness in the eyes of the consumer. Therefore, the assessment of the competitiveness of a product is made by comparing the parameters of the analyzed product with the parameters of the base (reference) product, since the competitiveness of a product or other object is a relative concept, that is, it can only be discussed when compared with another object.

Stages of assessing the competitiveness of a product:

1. Selecting a sample for comparison. The sample must belong to the same product group as the product being analyzed. The basis for comparison is usually taken to be a similar product that has the maximum sales volume, the best sales prospects, and has won the largest number of consumer preferences.

2. Determination of a set of compared parameters by which the consumer identifies the product. In this case, it is assumed that one part of the parameters characterizes the consumer properties of the product (its use value), and the other part characterizes the economic properties (its cost). Therefore, the parameters are divided into two groups:

§ consumer parameters that make up the beneficial effect. They reflect the degree to which customer needs are met and, in turn, are divided into “hard” and “soft”. “Hard” parameters describe the most important functions of the product and its design characteristics (these include, for example, frost resistance, thermal conductivity, strength). “Soft” parameters, unlike “hard” ones, cannot be regulated. Their assessment is possible only using a scoring system, since they contain the aesthetic characteristics of the product, perceived by the consumer at an irrational level (for example, comfort, design, attractive image). The importance of “soft” parameters increases if the “hard” parameters of the products are similar.

§ economic parameters reflect all consumer costs associated with the purchase and use of goods (for example, price, delivery costs, amount of customs duties).

3. Ranking and weighing of parameters. Having determined a set of parameters, they establish their hierarchy, highlighting those that have the greatest significance (weight) for the consumer. The determination of the weights is entrusted to a group of experts who have reliable market information. To clarify information, one of the “field” research methods is used (most often a survey). The parameters with the greatest weight are priority from the point of view of competitiveness and first of all become objects of thorough research. The weight of a parameter is usually measured in fractions of a unit, and is based on the rule: the sum of consumer weights ( a i), as well as the sum of the weights of economic parameters ( a j), must be equal to one.

4. Calculation of parametric indices. It is based on comparing the parameters of the analyzed product with the corresponding parameters of the sample. Indices for consumer parameters ( b P i) is determined by the formula:

(5.5a) (5.5b),

Where with OC i- meaning i-th consumer parameter of the product being evaluated;

c OB i- meaning i th consumer parameter of the sample.

The choice of formula is based on the rule: an increase in the parametric index contributes to increased competitiveness. Therefore, formula (5.5a) is chosen in the case of comparing those consumer parameters, the growth of which leads to an increase in the competitiveness of the product. Formula (5.5b), on the contrary, in cases of comparison of consumer parameters, the growth of which leads to a decrease in the competitiveness of objects. It should be noted that the parametric index of any regulated parameter can have only two values ​​- 0 and 1, depending on whether this parameter meets all the required norms and standards.

Calculation of indices for economic parameters ( b E j) is carried out according to the formula:

Where e OC j- meaning j th economic parameter of the product being evaluated;

e ABOUT j- meaning j th economic parameter of the sample.

5. Determination of summary indices for consumer ( I P) and economic parameters ( I E).

Where n– number of consumer parameters;

m– number of economic parameters.

The value of the composite index allows one to judge the value and profitability of the product being evaluated from the buyer’s point of view. So, if I P is greater than one, then the product being evaluated is superior to its analogue in terms of consumer properties. However, if I E is greater than one, then the product being evaluated is less economical from the consumer’s perspective than an analogue product.

6. Calculation of the integral competitiveness coefficient ( TO) is based on a comparison of indices obtained at the previous stage:

The product being assessed is considered competitive if the value TO> 1. As a result of the described comparison, one of the following conclusions is given:

§ products are competitive in the given market in the compared class of products;

§ products have low competitiveness in the compared class of products in a given market;

§ the products are completely uncompetitive in the compared class of products in the given market.

Thus, competitiveness is, first of all, a philosophy of working in market conditions, focused on understanding the needs of the consumer and their development trends, knowledge of the behavior and capabilities of competitors, knowledge of the state and trends of environmental development, and the ability to create a product preferred by the buyer.

Training assignments for the chapter “Analysis of the functioning of a company in a competitive environment”

Task 1.1

Condition. According to research, in 2004, 25 million mobile phones were sold in Russia, of which Siemens – 5.6 million units, Motorola – 5.25 million units, Nokia – 4.38 million units, Samsung – 4.38 million units, SonyEricson – 1.92 million units. Determine the intensity of competition and the competitive structure of the market.

Solution

Complete the following tasks yourself.

Task 1.2

During the year, 48 million television sets were sold in territory N, of which 11.6 million television sets of brand A – 11.6 million units, brand B – 8.2 million units, brand C – 7.3 million units, brand D – 6.5 million pcs., grade E – 5.8 million pcs., grade F – 5.1 million pcs. Determine the intensity of competition and the competitive structure of the market.

Task 1.3.

During the year, 15 million tons of confectionery products were sold in territory N, of which products of brand A – 2.1 million pcs., brand B – 1.9 million pcs., brand C – 1.7 million pcs. , grade D – 1.6 million pcs., grade E – 1.4 million pcs., grade F – 1.1 million pcs. Determine the intensity of competition and the competitive structure of the market.

Task 2.1

Condition. It is necessary to determine the competitiveness of the Loire perfume. On the market, you can choose Anita perfume as a sample - the perfume of the strongest competitor.

It is known that as the density of the solution increases, the competitiveness of perfumes in a given market decreases. The growth of other consumer parameters leads to an increase in the competitiveness of perfumes.

Solution

Complete the following tasks yourself:

Task 2.2

It is required to determine the competitiveness of the NM software product. In the market of intellectual products, you can choose the RK software product of the strongest competitor as a sample.

It is known that the growth of all consumer parameters leads to an increase in the competitiveness of a software product.

Task 2.3

It is required to determine the competitiveness of the Alpha washing machine in comparison with the Gamma washing machine, produced by the strongest competitor.

It is also known that increasing the drum capacity and washing duration leads to a decrease in the competitiveness of washing machines in this market. The growth of other consumer parameters improves the competitiveness indicator.

Intermediate test for the chapter “Analysis of the functioning of a company in a competitive environment”

1. When a company considers as its competitors firms that offer a similar product or service to the same target customers at similar prices, the following occurs:

a) subject competition

b) functional competition

c) formal competition

d) general competition.

2. When a company sees a competitor in all manufacturers producing goods that satisfy the same need, the following occurs:

a) subject competition

b) functional competition

c) formal competition

d) general competition.

3. The process of comparing a company’s products and business processes with the products and business processes of competitors or leading companies in other industries to find ways to improve product quality and company efficiency is:

a) competitive intelligence

b) industrial espionage

c) competitor analysis

d) benchmarking.

4. A company that is ahead of other companies in terms of price changes, introduction of new products to the market, coverage of the distribution area of ​​goods and sales promotion costs is:

b) follower

c) leadership contender

d) market leader.

5. One of the leading companies in the industry that strives to maintain its market share without making sharp attacks is:

a) a company serving a niche market

b) follower

c) leadership contender

d) market leader.

6. What value of the Herfindahl index determines low competition in the industry:

7. Monopolistic competition is:

a) competition between individual monopolies

b) competition between a small number of enterprises for sales

c) a situation where there are sellers in the market producing differentiated products.

8. Which of the following statements is one of the characteristic features of oligopoly:

a) the presence of a small number of buyers in the market

b) there are a small number of producers on the market

c) there is no competition in the market

9. Which of the following enterprises is an example of a natural monopoly:

a) oil producing company

b) private diagnostic medical center

c) metro

d) chain of stores

10. The company’s competitive advantage is:

a) the position of the company's products on the market

b) the difference between the company and its competitors

c) the company's strengths

d) the perception of the company's product by the intended consumer.

11. Soft parameters of product quality include:

a) power

b) service life

d) energy consumption.

12. Which of the following values ​​of the integral coefficient of competitiveness of a product is most acceptable for the manufacturer:

Questions for review for the chapter “Analysis of the functioning of a company in a competitive environment”

1. What is market competition, and what competitive forces operate in the market (according to M. Porter)?

2. What are the stages of the competitor analysis process?

3. How to determine the competitive position of a company?

4. What indicators are used to measure the intensity of competition?

5. What prerequisites are necessary for the existence of each of the four competitive market structures?

6. What competitive strategies of behavior in the market can be used by a market leader, a market challenger, a market follower and a “niche”?

7. What is competitiveness and what factors determine it?

8. What are the main stages of the methodology for assessing the competitiveness of a product?

Chapter 6. Analysis of consumer behavior and choice

The concept of competitiveness of goods

The competitiveness of a product and the competitiveness of an enterprise are correlated as part and whole. The ability of an enterprise to compete in a particular market directly depends on the competitiveness of the product and the combination of socio-economic and organizational factors and methods of operation of the enterprise that influence the results of competition.

The competitiveness of a product is a level of its economic, technical and operational parameters that allows it to withstand rivalry (competition) with other similar products on the market. In addition, competitiveness is a comparative characteristic of a product, containing a comprehensive assessment of the entire set of production, commercial, organizational and economic indicators.

Competitiveness is determined only by those properties that are of significant interest to the buyer, therefore it consists of such indicators as product quality, marketing and commercial activities, product price, product image and the prestige of the company.

The technical indicators of a product are determined by assessing the compliance of its technical level, quality and reliability with modern requirements put forward by consumers on the market. These requirements most fully reflect their social and individual needs at the achieved (predicted) level of socio-economic development and scientific and technological progress both in our country and abroad. Basic consumer requirements for technical indicators are reflected in national and international standards.

Product quality is the degree to which the established technical level is achieved in the production of each unit of commercial product. It is determined either by the organoleptic method (using the senses), or by laboratory tests using instruments, apparatus, reagents and other technical means. The concept of “quality” is considered as a set of properties that determine the suitability of a product (product) to satisfy certain needs in accordance with its purpose under certain operating conditions. Quality is the primary factor when determining price. Depending on the quality level, the manufacturer sets the price of the product. To assess competitiveness, the concept of an integral quality indicator is introduced, which is understood as the ratio of the total beneficial effect from the operation (consumption) of a product to the total costs of its creation and operation (consumption).

The main indicators that determine the commercial conditions for the competitiveness of a product include:

• · price indicators;
• · indicators characterizing the terms of delivery and payments for goods supplied;
• · indicators characterizing the features of the tax and customs system operating in the market of producers and consumers;
• · indicators reflecting the degree of responsibility of sellers for fulfilling obligations and guarantees.

The production price level directly determines the price competitiveness of the product. It is clear that the lower this level, the higher, other things being equal, the competitiveness of the goods produced on the market and, therefore, the position of its manufacturer in competition with other manufacturers of similar products is preferable. Conversely, a higher price level reduces the price competitiveness of goods, often reducing it to zero. Taking into account these conditions, pricing policy is formed in the struggle to increase the competitiveness of manufactured goods.

The same picture can be seen with respect to the fulfillment of delivery and payment terms. The more flexible these conditions are, the more they correspond to the interests of buyers, the more preferable the product is in competitive rivalry with other similar products on the market. First of all, this concerns the timing and forms of product deliveries and the variety of forms of payments and payments offered by the seller for the deliveries.

Also directly affecting the competitiveness of goods are the guarantees assumed by the manufacturer and the responsibility for fulfilling obligations to supply goods of high quality and reliability on time.

The organizational conditions for the acquisition and use of products by consumers ensure the actual implementation of commercial indicators of its competitiveness. These include:

• · ensuring the closest possible proximity of sellers of goods to buyers, which affects the reduction of distribution costs and, therefore, the level of its price;
• · delivery of goods to places of consumption not only in large wholesale transit, but also in small quantities through warehouse enterprises. The basis for economical delivery of goods is the ability to competently use transport charters, codes, transportation rules, transport tariffs and other fundamental documents in this area;
• · expansion of after-sales service provided to consumers with warranty and post-warranty service. Currently, the buyer makes a mandatory requirement to the seller of the goods: the service must ensure the functionality of the product throughout its entire service life. The seller, for his part, helps to ensure that the buyer's expectations are met, and therefore the organization of a strong customer service and its effective functioning is the primary concern of any industrial company that wants to successfully enter the market.

The competitiveness of a product, in addition to the above indicators, can also be characterized by the economic component, which includes the profitability or disadvantage of purchasing a given product in terms of the costs of its use and disposal:

• · quantity and cost of raw materials, fuel and energy consumed by the purchased product;
• · costs and timing of repair work and supply of spare parts;
• · the number of workers required to service this product;
• · expenses for their wages, training and advanced training, etc.

One of the first places in determining the level of competitiveness of a product is occupied by issues of image and prestige of both the company producing the product and the company’s commercial and sales specialists working to present and sell the product to consumers. Indicators of a prestigious company can be the degree of recognition of the authority of its trademark in the market and among consumers, the share in total sales, etc.

An important factor in the competitiveness of a product is its novelty, so the development of new products is always relevant. Every manufacturing company must be able to create new products. You also need to be able to manage their production taking into account changing tastes, changes in technology and the state of competition.

Methods for ensuring the competitiveness of goods

There are several methods and strategies to ensure product competitiveness. In the early 1970s, Japanese scientists developed a method known as “quality systems application,” which involves four steps:

• 1. product design based on the results of an analysis of the market situation and identification of quantitative values ​​of the main characteristics of a new product;
• 2. the design of a part is carried out using a quality testing matrix, which makes it possible to identify the parameters of parts that predetermine the quality of the product as a whole;
• 3. designing a technological process involves identifying practical stages and developing technology modes that ensure the achievement of a given product quality;
• 4. design of the production process and development of job descriptions, the implementation of which ensures the maintenance of high technological discipline.

Another version of this method involves parallel execution of operations: development of quality indicators, its components and parts, taking into account consumer requirements; development of technology that ensures the manufacture of products with the required quality parameters; cost analysis, including the development of measures to reduce costs; reliability analysis, which allows, based on processing data on failures during operation, to make appropriate changes to the design and production technology of the product.

European competitiveness researchers use the “profile method” as their basis. The essence of this method is this:

• 1. identifying consumer requirements for the product, i.e. establishing the market for the product being studied and analyzing its features, including determining whether the products offered on it correspond to buyers’ ideas about the ideal product;
• 2. establishing a ranking of parameters depending on their significance for the buyer, i.e. determining the parameters that a new product must have in order to ensure maximum income when sold;
• 3. changes in the technical and economic parameters of this product and comparing it with competing ones, i.e. analysis of the activities of the division being carried out in comparison with the activities of similar divisions of competing enterprises.

Assessment of product competitiveness

The competitiveness of a product is a measure of the profit of manufacturing enterprises or performers, since an increase in competitiveness causes an increase in sales volume. Therefore, the assessment of competitiveness plays an important role in determining and achieving planned profits as one of the goals of the organization.

Assessing the competitiveness of goods is a set of operations for selecting criteria (indicators) of competitiveness, establishing the actual values ​​of these indicators for competing products and comparing the values ​​of the indicators of the analyzed goods with the goods accepted as basic ones.

Depending on the purposes of the assessment, predicted or actual competitiveness can be determined.

Predicted competitiveness is the expected ability of products to satisfy needs.

Real competitiveness is the actual ability of goods to satisfy needs.

Determination of a complex indicator of competitiveness according to the methodology of Dolinskaya M.G. and Solovyova I.N., according to which, the calculation of competitiveness is carried out through several sequential operations. Determination of single indicators of competitiveness (q) as the ratio of the value of the 1st parameter for the analyzed product (P) to the value of the 1st parameter of the base sample (P i0).

q i = P i / P i0 * 100%,

q i = P i0 / P i * 100%

From the formulas, the one is selected according to which the growth of the indicator corresponds to the improvement of the indicator parameter. Next, group indicators (indices) of competitiveness (I mn) are calculated, which characterize the compliance of the product with the need for it.

I mn = ? a i *q i ,

a i is the weight of the parameter in the general set;

q i - single indicator for the i-th technical parameter;

I mn - group indicator of competitiveness in terms of consumer parameters should not exceed 100%.

Calculation of the level of competitiveness (K) using group indicators for one group of parameters:

K = I mn1 * I mn2,

I mn1, I mn2 - competitiveness indicators for the first and second competing products.

Determination of the integral indicator of competitiveness (K) of a product in relation to the sample (base product) using the formula:

C - group indicator of competitiveness according to economic parameters. Calculation of the consumption price (CP), which consists of the market price and costs associated with the operation of the product during its life:

C p = C 1 + P 2 + C 3 + C 4 + C 5 + P 6 + P 7 + P 8 + O 9 + C 10 + C 11, where

T 1 - market price;

R 2 - transportation costs;

C 3 - installation cost;

C 4 - storage cost;

C 5 - the cost of technical information and other documentation;

P 6 - product maintenance costs;

R 7 - costs for fuel and electricity;

P 8 - repair costs;

O 9 - payment of taxes, customs expenses and fees;

C 10 - cost of insurance; From 11 - cost of disposal.

Calculation of the competitiveness indicator (K):

K = (Q+C)/ C p,

Q - product quality;

C - quality of after-sales service or service.

Thus, having considered the concept of competitiveness of goods, we can draw the following conclusions:

• 1. Competitiveness includes three main components. One of them is strictly related to the product as such and largely comes down to quality. The other is connected both with the economics of creating sales and service of a product, and with the economic opportunities and limitations of the consumer. Finally, the third reflects everything that may be pleasant or unpleasant to the consumer as a buyer, as a person, as a member of a particular social group, etc.
• 2. The buyer is the main appraiser of the goods. And this leads to a very important truth in market conditions: all elements of a product’s competitiveness must be so obvious to a potential buyer that there cannot be the slightest doubt or other interpretation regarding any of them. It is very important to take into account the characteristics of psychological education and the intellectual level of consumers, as well as many other personal factors.
• 3. As you know, each market is characterized by its own buyer. Therefore, the idea of ​​some kind of absolute competitiveness not related to a specific market is initially invalid.

Competitiveness is not an indicator whose level can be calculated for yourself and for a competitor, and then win. First of all, this is a philosophy of working in market conditions, focusing on:

• · understanding of consumer needs and trends in their development;
• · knowledge of the behavior and capabilities of competitors;
• · knowledge of the state and trends of market development;
• · knowledge of the environment and its trends;
• · the ability to create such a product and bring it to the consumer,
• so that the consumer prefers it to a competitor’s product

The competitiveness of an enterprise is determined by the following factors:

Quality of products and services;

Availability of an effective marketing and sales strategy;

Level of qualifications of personnel and management;

Technological level of production;

The tax environment in which the enterprise operates;

Availability of funding sources.

In order to determine priority measures for industrial reform, it is necessary to determine the reasons for the loss of competitiveness of Russian enterprises.

Introduction

The product is the main object on the market. It has cost and use value (or value), has a certain quality, technical level and reliability, usefulness specified by consumers, efficiency indicators in production and consumption, and other very important characteristics. It is in the product that all the features and contradictions of the development of market relations in the economy are reflected. A product is an accurate indicator of the economic strength and activity of the manufacturer. The effectiveness of the factors that determine the position of the manufacturer is checked in the process of competitive rivalry of goods in the conditions of a developed market mechanism, which makes it possible to identify the differences between a given product and a competing product both in terms of the degree of compliance with a specific social need and in terms of the costs of satisfying it. To do this, the product must have a certain competitiveness.

The competitiveness of a product is a level of its economic, technical and operational parameters that allows it to withstand rivalry (competition) with other similar products on the market. In addition, competitiveness is a comparative characteristic of a product, containing a comprehensive assessment of the entire set of production, commercial, organizational and economic indicators in relation to the identified market requirements or the properties of another product.

It is determined by the totality of consumer properties of a given competing product according to the degree of compliance with social needs, taking into account the costs of satisfying them, prices, conditions of delivery and operation in the process of productive and (or) personal consumption.

Competitiveness is a concentrated expression of the totality of the capabilities of a country, of any manufacturer, to create, produce and sell goods and services.

Therefore, the topic of the course work is relevant today.

The purpose of this work is:

– Definition directly of the concept of product competitiveness.

– Determination and analysis of those factors due to which the competitiveness of a product is formed.

– Identification of possible ways to increase the competitiveness of a product.

It should be noted that a fairly large number of studies and literary publications are devoted to the problems of ensuring competitiveness. In this work, we will consider methods for analyzing and managing the competitiveness of a product, set out in the sources indicated as a bibliographic list of references.

1. Assessing the competitiveness of the product

1.1 The concept of product competitiveness in marketing

In a market economy, the decisive factor in the commercial success of a product is competitiveness. This is a multifaceted concept that means the product’s compliance with market conditions, specific consumer requirements, not only in terms of its qualitative, technical, economic, aesthetic characteristics, but also in terms of commercial and other conditions for its sale (price, delivery time, sales channels, service, advertising). Moreover, an important component of the competitiveness of a product is the level of consumer costs during the period of its operation.

Due to the multidimensional application of this category in various fields of knowledge, there are a number of definitions in the scientific and technical literature, sometimes contradicting each other.

The following definition of competitiveness is proposed: “...competitiveness is understood as a complex of consumer and cost (price) characteristics of a product that determine its success in the market, that is, the advantage of this particular product over others in the context of a wide supply of competing analogue products.”

Dictionaries give the following interpretations of this word:

1) “...the competitiveness of a product is a set of consumer properties of a product that determines its difference from other similar products in terms of the degree and level of satisfaction of the buyer’s needs and the costs of its acquisition and operation”;

2) “...competitiveness of a product is the ability of a product to be more attractive to the consumer (buyer) compared to other products of a similar type and purpose, due to better compliance of its quality and cost characteristics with the requirements of a given market and consumer assessments.

In our opinion, all these definitions have one common drawback, presenting competitiveness as a set, that is, the sum, of all the properties of a product and not taking into account the fact that the consumer is more interested in the ratio: quality, price of consumption.

This definition, namely: “...competitiveness means the ability of a given item (potential and / or real) to withstand competition,” more accurately reflects the essence of this category, but does not explain how this ability can arise.

Competitiveness is a higher ratio of the totality of qualitative characteristics of a product and the costs of its acquisition and consumption, compared to substitute products, if they meet the requirements of the market or its specific segment. Otherwise: a product is considered competitive if its total beneficial effect per unit of cost is higher than that of others, and at the same time, the value of none of the criteria is unacceptable for the consumer.

A product with low quality may be competitive at the appropriate price, but if any feature is missing, it will lose its appeal altogether. For example, the lack of a flash on a camera is almost impossible to compensate for by reducing the price.

In addition to the requirements for the product put forward by each individual consumer, there are also requirements common to all products that must be met. These are regulatory parameters that are established by: current international (ISO, IEC, etc.) and regional standards; national foreign and domestic standards; current legislation, regulations, technical regulations of the exporting country and importing country, establishing requirements for products imported into the country; standards of manufacturers of these products; patent documentation.

If at least one of the requirements is not met, the product cannot be put on the market.

If the result of the analysis of regulatory parameters is positive, they move on to analyzing the competitiveness of the product in specific markets.

There are several methods for calculating the competitiveness indicator.

However, before calculating the quantitative value of the competitiveness indicator, it is necessary to conduct a number of additional studies.

At the first stage, an experimental determination or calculation of all the characteristics of one’s own product is carried out, including those that can only be identified during its operation.

On the second, the goals of assessing competitiveness are determined, which depend on the stage of the product life cycle, on the strategy and development plans of the company, etc. Before introducing a new product to the market, you need to make sure that its performance is not inferior to its competitors and can attract the attention of buyers. Over time, the competitiveness of a product can either increase or decrease due to changes in consumer preferences, the emergence of new competitors or the departure of old competitors from the market, etc.

In the third stage, market segmentation and justification of the target segment are carried out using marketing methods.

1.2 Parameters of product competitiveness

The competitiveness of a product shows the degree of its attractiveness for a real consumer, i.e. the level of preference for a given product in a specific market during a certain period of time.

Competitiveness is determined by three groups of parameters: consumer, economic, organizational (commercial).

Consumer parameters characterize the following properties: parameters of purpose, quality (including from the consumer’s point of view), ergonomic, aesthetic and regulatory parameters, product image, its popularity, trademark, etc. Purpose parameters are related to the areas of application of the product and the fictions that it is required to fulfill. Ergonomic parameters characterize the compliance of products with the capabilities of the human body when performing labor operations or consumption, i.e. show the degree of comfort and convenience. Aesthetic parameters characterize informational expressiveness, rationality of form, perfection of production execution and stability of presentation. Regulatory parameters reflect the properties of products, which are regulated by mandatory norms, standards and legislation.

Economic parameters form the consumption price, which includes the selling price.

Organizational (commercial) parameters include a system of discounts, terms of payment and delivery, after-sales service, guarantees, etc.

One of the main factors of competitiveness is product quality. There are currently four quality levels:

1) compliance with the standard, i.e. regulatory requirements;

2) compliance with use, when the product must meet not only the requirements of standards, but also operational requirements;

3) compliance with actual market requirements, expressed in high quality and low price of the product;

4) compliance with latent (hidden, unobvious) needs, as a result of which the product will be preferred.

It is impossible to identify concepts such as “competitiveness” and “quality level”, since “competitiveness” is a broader concept than “quality,” although the latter most often forms the basis of competitiveness. The competitiveness of a product is determined by the totality of its properties that are of interest to the buyer and satisfy his needs. Since products are targeted at certain segments of buyers, they use the characteristics of the product that guide the majority of buyers in a particular segment when making a purchase.

The list of significant components of competitiveness and the degree of their importance for different buyers may vary even in the same market, so in each specific case it is necessary to highlight its own components. The meaning of the components and the consumer’s attitude towards them may change over different periods of time, even for the same product, so determining the set of components of competitiveness is one of the key points in its assessment.

Competitiveness should be understood as a characteristic of a product that reflects its difference from a competing product both in terms of the degree of compliance with a specific need and in terms of the costs of satisfying it. Indicators expressing such a difference determine the competitiveness of the analyzed product in comparison with a competing product. One of the main indicators is the level of competitiveness.

In practice, competitiveness is most often assessed using a sample product that is already in demand in the market and is close to social needs. Thus, the sample acts as an embodied requirement that a product in demand must satisfy. The parameters involved in the assessment are determined based on the results of market research and customer requirements. In this case, the criteria that the consumer uses when choosing a product should be used. The degree of importance of each criterion can be determined using expert and sociological methods.

Some experts differentiate the components of competitiveness into conditionally hard ones, which are easily measurable (for example, the level of quality, price), and conditionally soft ones, which are associated with the characteristics of the buyer’s perception of the product and are not always easy to measure (for example, the image of the product).

1.3 Methodology for assessing the competitiveness of a product

The success of any company ultimately depends on the level of competitiveness of the products it offers to consumers. Thus, we have to recognize the need to develop a clear methodology for assessing and managing the competitiveness of products, based on the close relationship of generally accepted laws of economics and management, psychology and sociology, statistics and probability theory, and other sciences.

In the process of assessing the competitiveness of products, the following principles must be followed:

– opposition of goals and means of market subjects;

– taking into account the characteristics of various market segments;

– predominantly rational behavior of market subjects.

The principle of opposition between goals and means when managing product competitiveness means that product competitiveness as an economic category should be considered in a dual aspect, i.e. in the process of assessing and managing competitiveness, it is necessary to take into account the interests of both subjects of market relations (consumers and producers), whose targets are interrelated and opposite: for the manufacturer, parameters that affect the level of costs are important, and for the consumer, parameters that influence the consumer properties of the product are important.

For the consumer, the purpose of purchasing a product is to acquire its quality - the ability to satisfy specific needs. The cost of factors that satisfy these needs can be represented as consumption prices. Each consumer, when choosing a specific product, strives to achieve an optimal balance between the level of consumer properties and the costs of its acquisition and use, i.e. obtain the maximum consumer effect per unit of cost. To measure the degree of satisfaction of needs, consumer satisfaction indices can be used, which are widely used in Western Europe and the USA (see Appendix 1).

From the manufacturer's point of view, the usefulness of products is determined by cost and price factors. In the long term, the goal of any manufacturer is to achieve the maximum difference between the selling price of the product and its own production costs. In this regard, the primary task for the manufacturer is to form an opinion in the minds of the consumer about the high degree of usefulness of this product. The quality level of the product production process, expressed through production and technological indicators and embodied in product quality, ensures satisfaction of the manufacturer’s needs and acts as a means of achieving the goal - making a profit.

Thus, for both market subjects, products are a set of useful properties, materialized into a certain substance, which is a means of satisfying the needs of both the consumer and the manufacturer.

The principle of taking into account the characteristics of various market segments is based on the rich practice of market relations, which has shown that consumers in the market do not act as a single, monolithic community. They react differently even to the same product with the same properties. When making a purchase, the consumer carries out the process of selecting the product he needs among a number of similar ones offered on the market, and purchases the one that best satisfies his needs. At the same time, the consumer determines the degree to which the product parameters correspond to their own needs and financial capabilities.

Since the needs of each individual buyer are influenced by a wide range of factors, evaluations of the same product by different consumers may not coincide. Accordingly, their preferences, which determine the patterns of consumer choice, will also be different. Consequently, each consumer will evaluate the level of competitiveness of a particular type of product purely individually. Therefore, the idea of ​​some kind of absolute competitiveness of products not related to a specific market is invalid.

However, the aggregate demand of representatives of any reference group of consumers is concentrated, as a rule, around a certain level of quality and price of the product, due to the fact that the motives of their behavior are influenced by similar external factors. By analyzing the psychological aspects of behavior and value orientations of the consumer, the researcher is able to identify some types of mass reactions of people in relation to a certain product. By releasing products with characteristics close to the most popular ones, it is possible to satisfy a significant part of the total effective demand with the help of a relatively small assortment. The optimal segment is considered to include 20% of consumers of products of this type, who purchase approximately 80% of the product.

At the same time, one should not equate mass sales with strong competitiveness of products, since products may be targeted at narrow layers of wealthier consumers. At any given moment in time, the structure of effective demand is quite definite, which makes it possible to segment consumers according to the significance (importance) of individual quality indicators and the magnitude of their budget constraints.

Thus, the competitiveness of products in different segments of the consumer market is different. Consumers segmented according to these criteria have a different structure of attitudes and evaluate the competitive advantages and disadvantages of products differently. To ensure its competitiveness, it is necessary to carry out correct segmentation of consumers.

In order to avoid internal inconsistency of the main parameters of the model for assessing the competitiveness of products, it is necessary to consider a period of time during which the psychological aspects of the perception of the usefulness of goods by subjects of market relations, the production capabilities of manufacturers and the purchasing power of consumers, the market positions of competitors and other conditions should remain unchanged. The main factors in determining the duration of the period of unchanged market conditions can be the level of income and structure of consumer spending, fashion, habits; qualitative leaps in science, technology, commerce and other fields of knowledge; instruments of state economic management (tariffs, GOSTs, quotas, limits, tax and interest rates, etc.); principles of socio-political structure; elements of the competitive environment, the speed of reaction of subjects of market relations to the actions of each other and (or) competitors, etc. Incomparability thresholds, which characterize fluctuations in the factors described above as insignificant, and the state of market conditions as static, are established expertly based on the experience and judgment of specialists in the field of marketing.

Although these time periods are extremely short in terms of possible changes in the external and internal environment, they are long enough to collect statistical information for building an econometric model. All events must be synchronized in discrete time intervals. So, for example, the consumer’s income and expenses must be made during the period under review, and their value and structure must change only from period to period.

The principle of predominantly rational behavior of market subjects is based on the assumption that the behavior of each of the subjects of market relations - be it a consumer or a producer - can be considered as a series of interrelated rational actions with a predetermined goal. The essence of these actions is that the subject chooses rational goals only in accordance with his natural and reasonable social needs, and carefully calculates the optimal path to satisfying his needs.

This model of behavior is largely implemented by manufacturers. Any entrepreneur will strive to sell products at a price as high as possible above cost. It should be noted that even those enterprises that use dumping prices in their competition are well aware that this tool is acceptable only as one of the tactical methods of squeezing competitors out of a certain market segment, and not as a factor in the strategic development of the company, a long-term tool for strengthening its market positions.

Each manufacturer strives to use all reserves to obtain maximum returns from the resources at its disposal. Any efforts in the field of improving product quality or reducing costs are motivated by only one thing - obtaining additional benefits, which can be expressed in strengthening the competitive position and (or) increasing the share of the enterprise’s profit in the selling price.

The actions of most product consumers are also subject to the principle of rationality. Commitment to rational behavior increases with an increase in the share of consumer expenditures to satisfy a given need or with tightening control over the process of spending funds. Both of these factors are characteristic of describing the behavior of consumers of industrial goods. Every consumer strives to get the maximum for his money in terms of quantity and quality of products. Most of the consumer space can be characterized by rational demand, i.e. demand due to the qualities inherent in a given product.

Irrational demand means that part of the aggregate demand is due to some other factors not related to the quality of the product. For any category of goods, there are three components of irrational demand:

External influences on the perceived usefulness of a product;

Speculative demand;

Irrational demand.

The most significant part of irrational demand is determined by external influences on the utility of the product. The amount of perceived utility consumers derive from a given good increases or decreases depending on whether other consumers buy the good or whether the good is priced higher than other similar goods. All consequences of the influence of these factors on demand are described by the corresponding effects.

The joining the majority effect involves an increase in demand for a product due to the fact that other members of a given consumer group are buying it.

If the majority acts rationally, then the actions of the minority can also be considered rational.

With speculative demand, the primary goal for the consumer is not to satisfy the need at the present time, but to attempt to preserve or increase wealth in the future. In this case, two points need to be noted:

The fact of product consumption and the result from this fact are significantly separated in time, which is not consistent with the principle of quasi-stability;

The consumer, showing speculative demand, acts as an entrepreneur, since the targets in his activities are not aimed at choosing the optimal price indicators for consumed products at the present time, but at increasing economic benefits in the future. Often this correlates with losses in the present moment.

The nature of irrational demand is characterized by an aggravated conflict between the main factors of consumer behavior (psychophysiological and sociocultural, instincts and pleasure). Thus, a consumer can behave irrationally when the pleasure and inconvenience (or pain) from the consumption process are separated in time. Cases when inconvenience first occurs when developing skills to use a product do not make it possible to enjoy the purchase of the product. The benefits of purchasing a product for the consumer seem dubious, and he refuses it, which causes a lack of experience of rational consumption. Conversely, the “pleasure-inconvenience” cycle allows you to accumulate experience of rational behavior. However, the large time gap between the fact of consumption and the negative consequences does not allow the consumer to draw conclusions about the irrationality of his behavior. In this regard, one of the conditions for making a rational decision is the introduction of prohibitions and other obstacles on the part of the state and society to protect consumers from their own irrational actions, as well as providing the most complete information about the quality of the relevant products and the state of market conditions. The lack of information leads to the fact that consumer behavior can become rational in form, but not in results.

Thus, the principle of rational behavior of market subjects allows us to apply the laws of the general theory of value, the theory of utility and other laws of psychology and sociology in the process of modeling the competitiveness of products.

The proposed principles are the result of a synthesis of previously known laws and concepts and are put forward as basic for solving a specific problem - assessing the competitiveness of products and determining the strategy and tactics of possible actions in the field of managing them in order to most fully satisfy the interests of consumers and producers at the same time.

The problem of product quality and competitiveness is universal in the modern world. Much depends on how successfully it is solved in the economic and social life of any country and almost any consumer.

The competition factor is coercive in nature, forcing the manufacturer, under the threat of being ousted from the market, to constantly engage in the quality system and, in general, the competitiveness of their products, and the market objectively and strictly evaluates the results of their activities.

In a developed competitive market, marketing becomes an effective means of solving the problem of quality and competitiveness of goods, experiencing, in turn, their reverse impact, which expands or reduces its possibility.

The ultimate goal of every company is victory in competition. The victory is not a one-time, not accidental, but as a natural result of the company’s constant and competent efforts. Whether it is achieved or not depends on the competitiveness of the company’s goods and services, i.e. on how much better they are compared to analogues - products and services of other companies. What is the essence of this category of a market economy and why, despite all the efforts of any company, cannot be strictly guaranteed?

Usually, the competitiveness of a product is understood as a certain relative integral characteristic that reflects its differences from a competing product and, accordingly, determines its attractiveness in the eyes of the consumer. But the whole problem lies in correctly defining the content of this characteristic. All misconceptions begin here.

Most beginners focus on the parameters of a product and then compare some integral characteristics of such an assessment for different competing products to assess competitiveness. Often this assessment simply covers quality indicators, and then (not infrequently) the assessment of competitiveness is replaced by a comparative assessment of the quality of competing analogues. The practice of the world market clearly proves the incorrectness of this approach. Moreover, studies of many product markets clearly show that the final purchase decision is only one third related to product quality indicators. What about the other two thirds? They are associated with significant and quite significant for the consumer conditions for the purchase and future use of the product.

In general, assessing the competitiveness of a product includes studying the market, competitors, customer needs and product evaluation parameters (see Appendix No. 2). In world practice, the quantitative assessment of a competitive product consists of three stages:

– market analysis and selection of the most competitive sample product as a basis for comparison and determination of the level of competitiveness of the product;

– determination of a set of compared parameters of two products;

– calculation of the integral indicator of product competitiveness.

To determine the competitiveness of goods, it is necessary to start with a market analysis: which countries, companies, manufacturers present their products.

– Determination of the list of groups of compared parameters and their numerical values.

– Selection of analogue products as a basis for comparison.

– Selecting an analogue. It can be specific, i.e. a real product, a competitor or an abstract one with given optimal parameters that are formed by the consumer and with maximum parameters obtained on the basis of market research.

– Information is collected on the performance of the product and its competitors.

Thus, at this stage, information about competitors and their products is collected, and groups of indicators are used in calculations.

1 group. Technical parameters are the qualitative characteristics of a product; these include functionality, packaging, maintenance, guarantees, accompanying documents, operating instructions, quality indicators. Regulatory characteristics show compliance with standards, norms and rules that regulate the boundaries beyond which these parameters cannot go.

2nd group. Economic parameters. These include: sales price, total costs of transportation, installation, maintenance, operation, repairs, taxes, insurance, disposal.

3rd group. Organizational non-price marketing conditions. Terms and conditions of delivery, payments, maintenance organization, company image, discount system, completeness of delivery, scale of the advertising campaign.

The requirement for an analogue product is to indicate that its class corresponds to the class of the original, similar product.

When determining a set of parameters, parameters characterizing the consumer properties of the product and parameters expressing its economic properties are selected. The consumer properties of a product, which make up its beneficial effect, are determined by a set of “hard” and “soft” consumer parameters.

“Hard parameters” describe the most important functions of a product and its associated characteristics, specified by the design principles of the product. They have a certain value, expressed in certain units (for example, power, size, temperature, etc.). The most representative group of “hard” parameters are technical, as well as parameters of compliance with national and international standards, regulations, legislative acts, etc.

“Soft” parameters characterize the aesthetic properties of the product, i.e. are an expression of design, packaging, color and give products a special appeal. “Soft” parameters, as a rule, do not have a natural physical measure and are difficult to quantify.

Determining a set of consumer parameters forms the basis for analyzing the competitiveness of a product. When analyzing all the parameters, those that are of greatest importance to consumers are brought to the fore. The value of each parameter is determined by a group of experts who have a sufficient amount of reliable market information. This approach does not exclude careful research of secondary parameters that can play a decisive role in competitive competition. The goal of this research approach is to maximize customer satisfaction.

An assessment is possible on the basis of organoleptic methods based on a person’s subjective perception of one or another property of an object and expressing the result of perception in digital (score) form. It may also be useful to evaluate a product not so much based on its direct perception, but rather on the basis of experience in marketing activities in the market, based on an intuitive determination of the role of a particular property in satisfying customer needs. This method is based on measuring various properties of a product. Taking into account the totality of all opinions, a quantitative assessment of the “soft” parameter is constructed.

This calculation is based on comparing the parameters of a given product with the parameters of an existing or developing product that most fully reflects the needs of customers.

The sample for comparative analysis is selected on the basis of information obtained as a result of market research on the nature of customer requirements, both direct - as a result of targeted collection of information, and indirect - taking into account data on sales volumes and market shares of the most competitive goods. To assess the relationship between the parameters of the product under consideration and the parameters of the sample, the percentage of the degree of compliance of this product with the parameters of the standard is found. The degree of compliance is determined in the form of a percentage ratio of the actual value of the parameter to the value at which the need is satisfied 100%. For example, the lifespan of an aircraft engine produced by a manufacturer is 80 thousand flight hours, while similar engines that are in active demand on the market have a lifespan of 100 thousand flight hours. It follows that the need for this parameter in our example is satisfied only by 80%, which, other things being equal, makes the manufactured engine not competitive in the market. Or another example. A hair dryer with automatic switching runs continuously for 30 minutes, and the consumer needs it to work until it turns off for 60 minutes. In this example, the need for this parameter is satisfied by only 50%. A similar calculation is carried out for all quantitatively assessed parameters in order to obtain a parametric index for each of them. Summarizing the results obtained, a general quantitative assessment of the “soft” parameter is constructed, which is correlated with a similar assessment of the corresponding parameter of the competitor’s product.

The attractiveness of the goods being sold to the seller lies in the net proceeds equal to the contract price minus the costs of sale, delivery, taxes, duties, and excise taxes. The competitiveness of a product is constantly being improved, achieving maximum compliance of its consumer and cost characteristics with existing and especially predicted customer needs. Based on the identification of market changes, those groups of goods that best meet the needs of consumers are selected. Next, forecasts for the emergence of new competitors' products are studied - new products that have a clear likelihood of successful sales and that will cause fierce rivalry between competitors. After this, technical requirements for the parameters of the goods are formed. In conclusion, evaluation tables are compiled for the correspondence between the parameters of several interesting new products and those technologies without which the release of a new product is impossible.

Ultimately, the choice of option is determined by the limitations that exist for a given industrial firm in the field of technology, material support and communications. A correctly chosen option for increasing the competitiveness of a product will allow you to avoid senseless losses to the maximum extent, and the results obtained from the analysis of this wide range of parameters will allow you to formulate a program of targeted changes in the production, financial, economic and sales work of an industrial company to strengthen its position in the competitive struggle in the market.

3. Ways to increase the competitiveness of a product

For many decades in our country, in conditions of high monopolization of producers, the regulator of production was not real demand, but - exactly the opposite - production and the administrative-command distribution mechanism regulated consumption, shaped the needs and tastes of buyers. In these conditions, the problem of product competitiveness practically did not arise for manufacturers. With the development of the market mechanism, this problem in our country, naturally, has sharply worsened.

It was noted above that competition policy regarding a product takes into account the ability of the product to satisfy the aggregate needs of the buyer better than competing products. Creating such consumer value for a product is the most important condition for survival in the market. Thus, an excellent design of a passenger car with poor maintenance will not save a new car brand from failure in the market.

The spread of competition is pushing manufacturers to intensify the search for new competitive products and new markets for their sales. The key point in gaining positions in the market is the timely renewal of manufactured goods, preparation and organization of production of new types of products. However, the creation of a new product is an extremely complex process, since it is ultimately about creating a mass of goods that fully meets the requirements of the market.

The concept of creating a new product today is based not so much on compliance with traditional aspirations to achieve new technical and technical-economic parameters, but rather on the desire to create a “product of market novelty” with a high level of competitiveness relative to other similar products. When developing a market strategy, it is very important to learn how to promptly remove economically ineffective goods from the production program of an industrial company.

When choosing ways to increase the competitiveness of a product, it is often a very timely decision not to launch a new one, not to discontinue an obsolete product, but to modify the product. The decision to modify a product is made in order to meet the special requirements of customers to obtain greater profits. Indisputable is the development of such an area of ​​increasing the competitiveness of goods as the timely provision of a range of services related to the sale and use of machinery and equipment, i.e. service maintenance. With skillful organization, service is a decisive factor in increasing the competitiveness of a product.

The problem of selecting and developing new markets is becoming increasingly important. New sales markets can decisively change the competitiveness of a product and the profitability of sales activities. Increasing sales volumes in new markets will reduce production costs. In this regard, it is very important for the further development of the competitiveness of a product to try to enter a new sales market with it, since its competitiveness in the domestic market has dropped sharply. But at the same time, it is necessary to know exactly the degree to which new markets are supplied with highly qualified employees of repair and maintenance organizations, since otherwise buyers may demand increased reliability and simplified design of products sold.

Conclusion

The market for goods and services has a powerful impact on the economy of both a single country and the world economy as a whole, and the manufacturing firms that appear on it, as a component of the market, will invariably remain the focus of attention of economists. The goods (or services) they produce are also of no small importance for the formation of obvious and hidden currents and trends in the market, and providing the end user with reliable information about them is the key to fair competition between firms, and, as a result, the survival of the strongest of them, who have the best strategy and tactics that supply the best products in terms of quality / price / service.

A fairly large number of studies and literary publications are devoted to the consideration of problems of ensuring competitiveness, which we, to the best of our ability and the availability of material, analyzed and systematized in this work.

In our work, we achieved our goals, namely: we examined the essence of the competitiveness of goods, the process and criteria for its assessment, the importance of taking into account the qualities of a product relative to analogues in market conditions, and also presented an analysis of possible ways to increase the competitiveness of a particular product. Of course, our analysis is incomplete due to a number of circumstances. However, any analysis can be criticized, and any fact can be interpreted in many ways, and each time you come to new conclusions or erroneous theories. We did not consider all existing theories, but limited ourselves to classic, well-established ones that have stood the test of time and practice. Also, not being able to analyze the entire range of goods of civilization put up for market auction, we made an attempt to understand the constituent factors of the competitiveness of goods, since in a market economy, competitiveness is a decisive factor for success.

In this work, we examined methods of analysis and management of product competitiveness and completed the tasks that we set for ourselves, and therefore we consider our work to be quite qualified and successful.

List of sources used

1. Bagiev G.L. Marketing: Textbook for Universities / G.L. Bagiev – M.: “Economy”, 2000.

2. Barancheev V. Strizhov S. Analysis and assessment of the marketing potential of enterprises // Marketing, No. 5, 2000

3. Boddy D. Fundamentals of Management. /D. Boddy - St. Petersburg: Peter, 2002.

4. Brun M. National index of customer satisfaction: construction and use / M. Brun // Problems of theory and practice of management. – 1999.

5. Bukhalkov M. Marketing/M. Bukhalkov - M, 2001.

6. Vikhansky O.S. Strategic management: Textbook. – 2nd ed., revised. and additional – M.: Gardariki, 2002

7. All about marketing: Collection of materials for managers of enterprises, economic and commercial services. – M.: “Azimuth Center”, 2002

8. Goldshtein G.Ya., Kataeva A.V. Marketing: Textbook / G.Ya. Golshtein, A.V. Kataeva - Taganrog: TRTU Publishing House, 1999.

9. Gurkov I.B., Titova N.L. Trends in changes in the competitiveness of domestic products / I.B. Gurkova, N.L. Titova // Marketing. – 1997.

10. Dixon P. Marketing management: Textbook./P. Dixon - M.: Binom, 2000.

11. Commercial merchandising and examination: Proc. manual for universities / G.A. Vasiliev, L.I. Ibragimov, N.G. Nagapetyants et al.; Ed. G.A. Vasiliev and N.A. Nagapetyantsa. – M.: Banks and exchanges, UNITY, 2001

12. Nikolaeva M.A. Merchandising of consumer goods. Theoretical basis. Textbook for universities. – M.: Norma, 2000.

13. Porter M. International competition. – M.: MO, 2000.

14. Rusinova F.M., Razu M.L. Management/F.M. Rusinova - M, 2000.

15. Soloviev B.A. Marketing management/B.A. Soloviev - M.: INFRA-M, 2002.

Bukhalkov M. Marketing/M. Bukhalkov- M, 2001

Goldshtein G.Ya., Kataeva A.V. Marketing: Textbook / G.Ya. Golshtein, A.V. Kataeva - Taganrog: TRTU Publishing House, 1999.

Dixon P. Marketing Management: Textbook./P. Dixon - M.: Binom, 2000

All about marketing: Collection of materials for managers of enterprises, economic and commercial services. – M.: “Azimuth-center”, 2002.

Porter M. International competition. – M.: MO, 2000.

Soloviev B. A. Marketing management: 17-module program for managers “Managing the development of an organization.” Module 13. – M.: INFRA-M, 2000.

Bukhalkov M.I. In-house planning: Textbook. – M.: INFRA-M, 2000. P.351

Competitiveness can be understood as the ability to withstand competition, to withstand competition.

Product competitiveness- this is a decisive factor in its commercial success in a developed competitive market. This is a multifaceted concept that means the product’s compliance with market conditions, specific consumer requirements, not only in terms of its qualitative, technical, economic, aesthetic characteristics, but also in terms of commercial and other conditions for its sale (price, delivery time, sales channels, service, advertising).

The competitiveness of any product can only be determined by comparing it with another product and is therefore a relative measure. It reflects the difference between a given product and a competing product in terms of the degree to which a specific need is satisfied. In order to find out the competitiveness of a product, it is necessary not only to compare it with other products in terms of the degree of their compliance with a specific need, but also to take into account the consumer’s costs of purchase and subsequent use to satisfy his need.

From here - under competitiveness is understood as a complex of consumer and cost characteristics of a product that determine its preference for the consumer in comparison with similar products from other domestic and foreign enterprises. Any product on the market is actually tested there to determine the degree of satisfaction of social needs: each buyer purchases the product that best satisfies his personal needs, and the entire set of buyers purchases the product that most fully meets social needs than competing goods .

Therefore, the competitiveness (i.e., the possibility of commercially profitable sales in a competitive market) of a product can only be determined by comparing the products of competitors with each other. In other words, competitiveness is a relative concept, clearly tied to a specific market and time of sale. And since each buyer has his own individual criterion for assessing the satisfaction of his own needs, competitiveness also takes on an individual shade.

To satisfy his need, it is not enough for a buyer to purchase a product. If this is a technically quite complex product, then the buyer will have to bear operating costs (pay for fuel, lubricating oil, spare parts, repairs), pay (if it is an industrial product) the labor of service personnel, spend money on their training, insurance, etc. d. Thus, the buyer's costs consist of two parts: purchase costs (price of the product) and consumption costs, called at the cost of consumption.

The consumption price is usually significantly higher than the selling price (in the total operating costs for the entire service life of transport, the selling price takes up no more than 20%, a truck - 15%, a long-haul aircraft 10 - 12%, a household refrigerator - approximately 10%), therefore the most competitive is not the product that is offered at the minimum price on the market, and the one that minimum consumption price over its entire service life with the consumer.

However, this economic indicator, despite its importance, does not completely exhaust the concept of competitiveness. The number of competitiveness parameters depends on the type and complexity of the product in technical and operational terms, as well as on the required accuracy of assessment, the purpose of the study and other external factors.

Finally, competitiveness is determined only by those properties that are of significant interest to the buyer (and, naturally, guarantee the satisfaction of this need). All characteristics of a product that go beyond these interests are considered when assessing competitiveness as having no relation to it in these specific conditions.

Exceeding norms, standards and rules (unless it is caused by an upcoming increase in government and other requirements) not only does not improve the competitiveness of the product, but, on the contrary, often reduces it, since it leads to an increase in price without increasing the consumer value from the point of view of the buyer, in which seems useless to him.

To assess competitiveness, it is important to keep in mind that in the modern market, firms try to sell not individual goods, but the entire range of services related to the product that are important for the buyer, so that he evaluates competitiveness from completely new positions, more acceptable for him and more difficult for the manufacturer .

The competitiveness of a product should be a key point in deciding to expand and create new production facilities. The costs of designing a new product, as has already been shown, are several times lower than the cost of equipment, debugging technology, organizing a sales network, etc.

Therefore, the release of an uncompetitive product, which does not allow its mass sale, can bring multimillion-dollar losses (which, by the way, often happened in the practice of our industry, which tried to enter the foreign market with certain products).

The study of the competitiveness of a product should be carried out continuously and systematically, in close connection with the phases of its life cycle, in order to promptly detect the moment when the competitiveness indicator begins to decline and make appropriate proactive decisions (for example, remove the product from production, modernize it, transfer it to another market sector). At the same time, it is based on the fact that the release of a new product by an enterprise before the old one has exhausted the possibilities of maintaining its competitiveness is usually not economically feasible.

At the same time, any product, after entering the market, begins to gradually consume its competitiveness potential. This process can be slowed down and even temporarily delayed, but it is impossible to stop. Therefore, a new product is designed according to a schedule that ensures its entry into the market by the time the previous product has significantly lost its competitiveness. In other words, competitiveness new products must be proactive And long enough.

In this case, special attention should be paid not so much to improving the technical parameters of the product, although they are important, but to reducing the price of consumption.

World practice knows many examples when this particular parameter became decisive, although the new product was sold at a significantly higher initial price.

Thus, one of the companies sold a computer for 4 thousand dollars, the operating costs of which were 3.25 thousand dollars. The new machine was introduced to the market with a selling price of 5 thousand dollars, but the operating cost was reduced to 1.25 thousand dollars. As a result, the savings for the consumer amounted to 14% (based on the sum of the sales price and the consumption price), and the company’s sales quadrupled!

Likewise, a $450 TV with a $125 operating cost quickly drove out a competing model with a $400 price and $326 operating cost.

Aircraft manufacturing companies use the competitiveness parameter very effectively to advertise their products. Many of them offer the potential buyer a special analysis that takes into account all the airline’s equipment, routes, aircraft load and prospects for the development of air services, demonstrating how much more profitable it will be to replace old equipment with new ones (in terms of profit growth).

In practical activities and in theoretical research, quality and competitiveness are often equated, or no distinction is made between them at all. There is also debate as to which of the two concepts is broader. Let's try to answer these questions.

Quality, as well as its concept, has gone through centuries of development. Quality developed as social needs developed, diversified and multiplied and the ability of production to satisfy them increased. The process of development and change in the essence of quality and its parameters has been particularly dynamic in recent decades, when the very concept of quality, requirements and approaches to it have rapidly changed. This process took place most intensively, in particular, in Japan, which in the 70-80s actually became the world leader in determining the level of quality for many types of goods.

The first level is “compliance with the standard”. Quality is assessed as meeting or not meeting the requirements of the standard (or other document for the manufacture of a product - technical specifications, contract, etc.).

The second level is “fit for use.” The product must satisfy not only the mandatory requirements of the standards, but also the operational requirements in order to be in demand in the market.

The third level is “compliance with actual market requirements.” Ideally, this means fulfilling customer demands for high quality and low price of goods.

The fourth level is “compliance with latent (hidden, unobvious) needs.” Buyers' preference is given to goods that, in addition to other consumer properties, satisfy needs that consumers have of an implicit, little-conscious nature.

Other developed countries with market economies are also following the same path as Japan, but with some time lag. In a competitive environment, manufacturers in their activities cannot but follow these requirements for increasing the level of quality. Russian producers and consumers will have to undergo a similar evolution of quality as a civilized market becomes established.

Quality acts as the main factor in the competitiveness of a product, constituting its “core”. In principle, a low-quality product also has low competitiveness, just as a high-quality product is a competitive or highly competitive product. The exceptions in this regard that exist in practice only confirm the general provisions.

The central place occupied by quality and competitiveness in product and market policy in general determines their place in marketing strategy and practical marketing activities. And since marketing puts the consumer at the center of attention, all the work of an enterprise using the principles and methods of marketing is aimed at subordinating production to the interests of the consumer.

Because of this, problems of quality and competitiveness in marketing are not current, tactical, but long-term, strategic in nature. Hence, long-term forecasting of the volume and nature of needs, the long-term technical level and quality of products is aimed at: identifying possible requirements for the range and quality of products for the long-term period of their production and consumption; determination of scientific, technical and economic opportunities to meet consumer requirements; establishing the range and quality indicators when developing promising types of products.

High quality and competitiveness of products are ensured by the entire marketing system - from design, pilot and serial production to sales and service of used products, including, among others, means and methods of management and quality control, methods of transportation and storage, installation (assembly) and after-sales service.

The competitiveness of a product is its ability to be attractive in the eyes of consumers compared to other products of the same category or the same direction. This concept includes a whole range of measures that the manufacturer takes to improve the quality and promote its product to the masses.

Factors of influence

1. Service factor. Applies to both pre-sales and post-sales periods. The first includes: the conditions under which the product was purchased, how well it was demonstrated, the availability of the opportunity to pay for the purchase in several ways to choose from. The second includes: the quality of packaging of the goods, the possibility of delivery, warranty service.
2. Sales factor. Even the invention and launch of a completely new and potentially attractive product does not guarantee its unshakable competitiveness. It is important that the products are supported by a good advertising campaign. In addition, you need to take care of the convenience of delivering the goods to the client. Good and beautiful packaging is also an attractive element that puts the product in a favorable light.
3. Information factor. An important role is played by the buyer’s awareness of the product: its technical characteristics, scope of possible application.
4. Pricing factor. This is a fundamental point that largely determines the position of a product among its peers. The modern consumer compares the characteristics of available products and, if possible, takes the one that is cheaper, ignoring the “extra” options of more expensive products.
5. Scale factor. By increasing production volumes, it is possible to reduce costs, thereby reducing the selling price.

Even the invention and launch of a completely new and potentially attractive product does not guarantee its unshakable competitiveness.

The formation of competitiveness is based on many factors, it is difficult to list all of them, because entire departments of corporations work on developing strategies. But these are the main points on which everything else is built.

Types of product competitiveness

Price

On store shelves you can find almost the same product, which differs not only in the manufacturer, but also in price. Sometimes this difference can reach 100% or more. This is a clear example of price competition.

It can be direct (when low cost is used in advertising to attract buyers) or hidden (usually when the difference in price is very insignificant). Price competition is carried out in several ways: discounts, issuance of coupons, offset.

Dumping is an artificially low price of a product (in some cases even below the purchase price) in order to get rid of the costs of storing the product. It is especially popular to use this technique to introduce a new product to the market, for example, a new country of sale.

Non-price competition

The manufacturer pays great attention to product quality and innovation. The existing product line is constantly being improved and supplemented. The changes concern both design and internal characteristics. Widely involved in promotions, presentations. A lot of money is allocated to create the image of the manufacturer and promote the products. In the modern world, this method is more effective, since quality indicators are assessed by consumers much more meticulously than price.

In the modern world, non-price methods are effective, since quality indicators are more important to consumers than price.

Technical view

The technical competitiveness of a product implies regular improvement and modernization of the product being created and sold. People's needs are constantly increasing and changing - you need to monitor this and try to satisfy the emerging requests to the maximum, and sometimes even predict them several steps ahead.

It is worth mentioning the fourth one – illegal, but so beloved by some companies. Its essence is to ruin the reputation of a competitor and his products. No one is immune from this dishonest type of struggle for the market. However, if you recognize in time that a competitor is “digging a hole,” you can take all measures to ensure that he falls into it. The concept of slander has not been abolished, so issues can be successfully resolved in court.

Methods for assessing competitiveness

There are several ways in which an enterprise producing a particular product or providing services can.

1. SWOT. An analysis method that helps to identify the strengths and weaknesses of products, the capabilities of the market occupied and, thereby, assess the competitiveness of production.
2. McKinsey/GE method. It allows you to identify the best market area after assessing just a few criteria: product competitiveness and market attractiveness.
3. Porter's five forces technique. A model that estimates To the competitiveness of the product in the market, and also determines the stability of the company in the current conditions of the internal and external environment.
4. Competitiveness polygon. A simple technique that reveals the position of a particular product in relation to the same products from competitors.

Increasing the competitiveness of the product

To increase the competitiveness of goods, especially when the product is new, it is necessary to conduct numerous marketing studies, which, first, will help determine the feasibility of the enterprise. A strategy is built on the data obtained. As a rule, the strategic competitiveness of goods implies a set of activities that extend over a long time, but such a system gives a more sustainable result.

A company that wants to create a competitive product can use several strategies:

• Find a way to differentiate your product from competitors' products.
• Find new uses for existing products.
• Modify the product line taking into account the changing needs of consumers.
• Develop the service provided.
• Select a leader from all your products and promote it to the market in order to increase brand awareness and build a reputation.

The wider the range of products, the greater the chances of emerging as a winner from the competition. Firstly, the choice is provided to the customers themselves, and secondly, the likelihood of guessing the desires of consumers in several groups at once increases.

The wider the range of products, the greater the chances of emerging as a winner from the competition.

Continuous product improvement plays a significant role in competitive advantage. Competitors never sleep; they are constantly building ways to get around and get ahead. Even if you are at the peak today, it is not a fact that the situation will remain the same tomorrow. Interview customers, conduct market research, and try to keep up with changing needs.

In order to increase competitiveness, it is worth using sales promotion methods. Develop programs that benefit both you and your customers so that they can become more familiar with your products or services.

The topic of increasing the level of competitiveness of goods and services in the market is extensive. Moreover, each product is unique, as are the conditions for its promotion. One thing is clear - you need to do this seriously and thoroughly, so as not to be eaten by larger “sharks”.