APPLYING ECONOMICS

Presented by:
Nechellyn Alagenio
 TOPIC :Principles tools and techniques

A. COMPETITION
B. CUSTOMERS
C. SUPPLIERS
D. COMPETITORS
E. SUBSTITUTE
 A. COMPETITION

-Competition is the quest for

achieving superior results, the
best results in a specific sports,
or in social activities, the best
results compared to others.
-Competition usually involves
two or more competitors with
the goal of determining the
simultaneous demand for a
resource that causes
competition.
Competition was defined as a
-

situation in which rewards are

distributed unequally
WHAT IS CUSTOMER?

CUSTOMER=
the way organizations look
after their costumers
 B. CUSTOMERS
Costumers satisfaction is the extent to which a product
performance matches buyers expectations.The key to
successful and profitable business rests with identifying
the needs and wants of the customers and providing
Goods and services to satisfy there needs and wants.
COSTUMERS CONCEPT
• Need ,wants and demands
• Marketing offers
• Value and satisfaction
• Exchange ,transaction and
relationships
• Markets
NEEDS ,WANTS AND DEMANDS

 Needs
• A state of felt deprivation.The basic human
requirements
 Wants
• The form taken by a human needs as shaped by
culture and individual personality.Wants are
described in terms of objects that will satisfy
needs
 Demands
• Human wants that are backed by buying power
 C. SUPPLIERS

P&G SEEK TO BALANCE STABILITY IN

THEIR SUPPLY BASE AND ORDERLY
SHIFTS OF BUSINESS WITH THE
NEED TO SEEK OUT NEW SUPPLIER
WHO
OFFER SUPERIOR VALUE.
D. COMPETITORS
 Anadvantage over
competitors gained by
offering consumers
greater value than
competitor offer.
 OBJECTIVES
 Learn how to understand competitors as well as
customers via competitor analysis

 Learn the fundamental of competitive marketing

strategies based on creating value for customers

 Realize the need for balancing customers and

competitor organizations in order to become a truly
market-centered organization
 IDENTIFYING THE COMPANY`S
STEPS IN ANALYZING 
COMPETITORS

COMPETITORS  ASSESSING COMPETITORS

OBJECTIVES,STRATEGIES,STRENGTHS
AND WEAKNESSES AND REACTION
PATTERNS

 SELECTING WHICH COMPETITORS TO

ATTACK OR AVOID
 “
Steps in the process;
COMPETITOR ANALYSIS

 Identifying competitors

”
 Assessing competitors
 Selecting competitors to Attack or Avoid

 Firms face a wide range of competition

 Be careful to avoid “competitor myopia”
 Methods of identifying competitors:
 Industry point of view
 Market point of view
 COMPETITOR STRATEGY
BASIC COMPETITOR STRATEGIES:
VALUE DISCIPLINES
 OPERATIONAL EXCELLENCE
 Superior value via price and convenience
 CUSTOMER INTIMACY
 Superior value by means of building strong
relationships with buyers and satisfying needs
 PRODUCT LEADERSHIP
 Superior value via product innovation
 E. SUBSTITUTE

SUBSTITUTE are those goods which can be used in place of one

another for satisfaction of a particular want.
A good or service that may be used in place of another
LET SEE AN EXAMPLE
TYPES OF SUBSTITUTE

 CLOSE SUBSTITUTE are those goods that could

closely take the place of a particular good.
There are many substitute goods available
on the market.
A PERFECT SUBSTITUTE is a
good that functions just the
same as the good it is being
compared to. A PERFECT
SUBSTITUTE is a product or
service you can purchase in
place of another and still get
the same satisfaction.An
example would be coke or
pepsi.
THANK YOU!!!!!!!!!
BABYEEEEEEE
E!!!!!!!!!!!!