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12 Cards in this Set
- Front
- Back
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Explain competitive advantage.
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Competitive advantage: an advantage over competitors gained by offering consumers – or employees, visitors or patients – greater value than competitors d
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Competitor analysis.
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Competitor analysis: the process of identifying key competitors; assessing their objectives, strategies, strengths and weaknesses, and reaction patterns; and selecting which competitor to attack or avoid.
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Competitive marketing strategies.
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Competitive marketing strategies: strategies that strongly position the company against competitors and that give the company the strongest possible strategic advantage
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Competitor myopia.
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Competitor myopia: a company focusing too much on what it considers to be its direct competition, while losing sight of indirect and new competitors
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How can competitors be assessed?
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- Determining competitors’ objectives: the relative importance that a competitor places on current profitability, market share goals etc.
- Identifying competitors’ strategies o Strategic group: a group of firms in an industry following the same or a similar strategy - Assessing competitors strengths and weaknesses o Benchmarking: the process of comparing the company’s products and processes to those of competitors or leading firms in other industries to identify best practices and find ways to improve quality and performance - Eliminating competitors’ reactions: knowing how major competitors react gives the company clues on how best to attack competitors or how to best defend against competitors |
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Explain selecting competitors to attack or avoid.
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- Strong or weak competitors: a customer value analysis can be used
- Good or bad competitors |
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List some basic competitive strategies.
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- Basic competitive strategies:
o Overall cost leadership: the company works hard to achieve the lowest production and distribution costs o Differentiation: the company concentrates on creating a highly differentiated product line and marketing program so that it comes across as the class leader in the industry o Focus: the company focuses its effort on serving a few market segments well rather than going after the whole market |
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Three value disciplines.
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o Operational excellence
o Customer intimacy o Product leadership |
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Competitive positions.
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o Market leader: largest market share
• Strategy: expand total demand, defensive and offensive actions, expand market share o Market challengers: a runner-up firm that is fighting hard to increase its market share in an industry • Strategy: challenge the leader, not try to outdo the leaders o Market follower: a runner-up firm that wants to hold its share in an industry without rocking the boat • Strategy: hold on to current customers o Market nicher: a firm that serves small segments that the other firms in an industry overlook or ignore |
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What is a customer-centered company?
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Customer-centered company: focuses on customer developments in designing its marketing strategies and on delivering superior value to its target customers
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What is a competitor-centered company?
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Competitor-centered company: focuses on competitors’ actions and reactions
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What is a market-centered company?
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Market-centered company: a company that pays balanced attention to both customer and competitors in designing its marketing strategies.
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