The Influence of Competition on Marketing

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Abstract

The research devoted to the competitive impact upon marketing has multiplied since the seminal works of Alderson (1937) who argued for differential advantage a company should try to achieve. These were structured mainly around two problems: market orientation and its impact on organizational performance and the design of marketing-mix within the context of rivals’ activities. Two questions remain under-explored: that of the alternative to marketing ways of market behaviour within the competitive context, and that of the influence of managerial perception of competition on the design of marketing-mix. In relation to the first topic, this article proposes embracing the development of market orientation within a broader context of competitive advantage. The premise of marketing always playing a key role in the achievement of competitive advantage within the context of high intensity of competition is undermined. With regard to the second topic, the paper develops an integrative framework of the managerial perception of the competition and its influence on marketing-mix. It is demonstrated that not only the structure of competitive environment and their participants’ behaviour influence the design of a firm’s marketing-mix but also how the processes are interpreted by managers. The paper is of a conceptual character. On the basis of current literature it integrates the construct of market orientation with competitive advantage, marketing-mix and managerial representations of competition into one research model. It is concluded with a discussion of managerial and future research implications.