FOR PROF.MACQUEEN (5)

Forward thinking healthcare marketers understand that it is essential to accurately indentify and asses their competition because every competitor represents a threat. Although marketers cannot control their competitors, they can closely monitor the actions of rivals and proactively address developing issues. To assist marketers in understanding the true extent of the competitive environment, Lehmann and Winers’ Level of Competition Model indentified four competitive levels.

First is Product Form. This level of competition is the narrowest view that can be taken of competition. Identified by the innermost circle on the Levels of Competition Model, products from competition include all competitive products that have roughly equivalent products features and compete in the same market segments. At this level, competitive entities include direct, head-to-head rivals that offer similar goods and services and compete for the same turf.

 

Next is Product Category. In this level, competition expands to include all competitive products that can possess similar feathers, regardless of the market segments targeted. Competition at this level represents what marketing managers have traditionally viewed as their competitive set.

 

Then we have Generic Competition. In this level generic competition includes all competing products. Generic competition is outward focused, meaning that it’s focused on potential alternatives or substitutes for associated products offerings.

 

Lastly is Budget Competition, the outermost level of competition, which involves all products that compete for the same consumer dollar. This level represents the broadest view of competition. Although budget competition is useful from a conceptual perspective, it is of very little strategic value because the number of potential competitive offerings is so immense.

 

Next slide.

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