What are direct competitors?

Direct competitors are companies that offer products and services that are functionally the same. This form of competition requires companies to develop advertising campaigns that cause their products to excel for consumers because they do not offer unique products that attract specific niches. The success of companies in this position is determined by the percentage of market share for the product or service they can capture. Other types of competition include spare competition and budget competition. Companies can try to distinguish what they sell, with quality, reliability and other product characteristics in the hope that consumers will provide a reason to choose their product before the competitor's product. Creative campaigns can be used by various and tactics that attract the attention of potential customers.

Sometimes competition can become wild. Direct competitors can participate in price wars and eventually reduce their prices so low that they barely break on the key toDukty and services. Price wars are sometimes justified by the argument that the price war draws on customers and encourages them to encourage other products from the same society. This ensures that the company realizes profit, while competitive prices maintain loyal customers and can lead to the recommendation of the product to other people.

Companies that compete for the same niche can use many different advertising techniques to capture the market share. This may include the use of advertising influence to flood the market with promotional materials that have drowned messages from the competition, as well as to question the quality, reliability or product of the competition. Directors can also try to change the way people think about their products by advertising their products and services in a way designed to address a particular sub -group of a demographic group such as people who proud to have good VKUs or are on the tip of technology or fashion, for example.

Economists theorizing that competition generally maintains healthy markets. In particular, direct competition can lead to rapid innovations because companies are constantly forced to rework their products and services to keep them fresh and new in the eyes of consumers. This can lead to improvement of related products. The constant development of new features for existing products by direct competitors can also lead to the invention of spinoff products that produce more income for the parent company.