Characteristic features of non-price competition in the Russian Federation

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Competition is one of the most important factors in the economy. It must be acknowledged that non-price methods of competition are used relatively rarely in the Russian market, and most companies understand competition as a reduction in price by minimizing costs, which occurs at the expense of product quality. In turn, consumers are more focused on low price than on quality.

Another feature is that some companies successfully sell their products in Russia, but they are not well-known in foreign countries, therefore, in order to enter the world market, it is necessary taiyuan mobile phone numbers database to modernize production and determine an effective promotion strategy.

In the current conditions, domestic producers are characterized by various types of competitive behavior:

Traditional behavior characteristic of a developed market economy (for example, price and non-price competition).

Non-standard forms that are relics of the command economy or caused by the weak development of market relations and economic instability:

reliance on support from state and municipal authorities, provision of benefits (on taxes, loans, etc.);

ignoring requirements to pay taxes and mandatory payments in the hope of writing off the debt;

failure to fulfill obligations to creditors;

failure to repay loans;

delay in payment of wages;

making payments in kind;

release of unregistered products (shadow business);

informal employment and other schemes.

Basically, the above types of competitive behavior contradict generally accepted norms. Since the Russian Federation has not had a clear concept of interaction between the state and business for a long time, difficulties have arisen with the implementation of fair competition.

Non-price competition in the Russian Federation

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 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.