Using a Variety-Seeking Model to Identify Substitute and Complementary Relationships Among Competing Products (Использование модели «стремления к разнообразию» для определения взаимодополняющих
и взаимозамещающих продуктов)
Product line management requires an understanding of competitive interrelationships in the relevant product class. Such understanding enables the manage to avoid offering multiple products which largely meet the same needs of the same consumers and to spot important niches for which the line currently has no offering. Managers can further exploit their understanding of competitive interrelationships in designing advertising copy, selecting distribution channels, and developing cross-promotional offers. There is perhaps no marketing mix decision that does not require an understanding of relevant competitive interrelationships. The importance of understanding competition among products has given rise to multiple measurement methods. Economics offer cross-price elasticity as a measure of one brand's competitive impact on another. Because of the difficulty of estimating cross-price elasticities, marketers have devised other measurement techniques.