This is facilitated by various factors, but the main role is played by the inability of the organization’s leaders to compete in a worthy manner in the current conditions.
Advertising allows you to gain important advantages in non-price competition: it creates a clear idea of the product and the company, provides customers with the necessary information, and encourages them to purchase the product.
The situation is that domestic lawyer data package producers have become accustomed to price reduction as a classic tool of competitive struggle, while non-price competition methods, and, above all, advertising, have not been used to their full extent. Owners of Russian companies tend to underestimate the value of advertising for business; there is an opinion that advertising expenses are completely useless and should be abandoned.
At the same time, in countries with developed market economies, investments in advertising reach enormous sizes and subsequently pay off in the process of selling products.
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Non-price competition factors
Non-price factors of competitiveness include circumstances that are not related to the organization itself and that it cannot influence. Formally, they are divided into demand factors and supply factors.
Demand factors, also called determinants of demand, are factors that cause demand to change at a constant price level:
Consumer preferences and tastes.
Consumer income: As income increases, demand for quality goods increases.
Number of consumers: When there are many consumers, demand is high.
Prices for other products, such as alternatives or complements.
Consumer economic expectations, including those related to inflation or exchange rates.
Non-price competition factors
Non-price supply factors include:
Technological progress.
Economic expectations.
Changes in tax legislation.
Reducing costs through the introduction of modern technologies, upgrading equipment, and so on.
The emergence of new participants in the market.
Changes in prices of goods that may force the organization out of the market.
Natural disasters.
Military and political situation.
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