1. Asif Jamal
Lecturer of
Management
Science
NUML
Marketing competition

2. Content
Ø Introduction
Ø Marketing competition
Ø Three levels of competition
Ø Perfect Competition
Ø Structures Of Perfect Competition
Ø Imperfect Competition
Ø Pro’s and Con’s Of Perfect Market
Ø Summary

3. Competition
Ø Is a term that encompasses the notion of individuals
and firms striving for a greater share of a market to sell
or buy goods and services
Ø Causing commercial firms to develop, new products,
services and technologies, giving the consumer a
greater selection and better products

4. Marketing Competition
Ø Competition is seen as a state which produces gains
for the whole economy, through promoting consumers
sovereignty. It may also lead to wasted (duplicated)
effort and to increased costs (and prices) in some
circumstances

5. Three Levels of Competition
Ø Brand competition: products performing same function
competing against each other
Ø Substitute competition: products that are simillar to each
other, ex; margarine, mayonnaise, ..etc
Ø Budget competition: anything that the consumer might
want to spend their available money, all products competing
for the consumer’s money

6. Perfect Competition
Ø Describes markets such that no participants are large
enough to have the market power to set the price of a
product
Ø A perfect market exists only when every participant is a
“price taker”, and no participant influences the price
nor the product.

7. Structures Of Perfect
Competition
Ø Infinite buyers and sellers
Ø Perfect information
Ø Zero transaction costs
Ø Profit maximazation

8. Imperfect Competition
Ø A competitive situation in any market that did not
satisfy the conditions of a Perfect Market
• Monopoly
• Oligopoly
• Monopsony
• (etc…)

9. Pro’s and Con’s Of Perfect
Competition
Ø Advantages:
• Competition encourages efficiency
• Consumers charged a lower price
• Change in demand , lead in extra supply
Ø Disadvantages:
• Insufficient profits for investment
• Lack of product variety
• Unequal distribution of goods and income

10. Summary
Ø A market is any one of a variety of systems,
institutions, procedures, social relations and
infrastructures whereby parties engage in exchange.
While parties may exchange goods and services by
barter, most markets rely on buyers offer their goods or
services (including labor) in exchange for money
Asif Jamal
Lecturer of Management Science
National University Of Management Science