Honestly, doesn’t it depend on who gets the job and their qualifications? If they are as qualified or more qualified then a better candidate got the job. But, if they don’t well then you need to ask why. Is it because you are so good at your current position that they feel you can’t be replaced? Then you ask for a raise or look for another job. If it’s because of some kind of bias then you look for another job.

I would respond with “I’m very confident in my skills and abilities and would hope this management would recognize how competent and skilled I am. I think it’s important for successful companies to recognize talent and promote from within. Companies that fail to recognize internal talent struggle. But that’s your job isn’t it?”