Your answer to this query should help you distinguish between direct and indirect competition. Again, try making your answer sound natural rather than bookish or artificial. It would be helpful to explain how you rank the data from both parties that have the potential to affect the marketing plan.   You can answer in this way - “Companies that sell the same kind of goods and focus on the same consumer demographics are considered to be in direct competition. Companies that may sell comparable goods but are different enough to offer an alternative are considered indirect competitors. I concentrate my market research on the activities of the direct rivals. If they have already manufactured a product and we are introducing it, I assess how well it has done in the market and how it will affect our customers. The same procedure is followed for indirect competitors, and I use their success to judge if they will keep offering similar goods and, if so, whether they will later become direct competitors.”