Chapter 18 Creating Competitive Advantage

Topics: Competitor analysis, Marketing, Competition Pages: 36 (1414 words) Published: April 22, 2015
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Chapter Eighteen
Creating Competitive Advantage

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Publishing as Prentice Hall

18-1

Creating Competitive Advantage
Topic Outline

• Competitor Analysis
• Competitive Strategies
• Balancing Customer and Competitor
Orientations

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Publishing as Prentice Hall

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Today’s Companies
• Competitive advantages require delivering
more value and satisfaction to target
consumers than competitors do
• Competitive marketing strategies are how
companies analyze their competitors and
develop value-based strategies for
profitable customer relationships

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Competitor Analysis
Competitor analysis is the process of identifying,
assessing, and selecting key competitors

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Competitor Analysis
Identifying Competitors

Competitors can include:
• All firms making the same product or
class of products
• All firms making products that supply
the same service
• All firms competing for the same
consumer dollars
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Competitor Analysis
Assessing Competitors

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Competitor Analysis
Assessing Competitors

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Competitor Analysis
Selecting Competitors to Attack and Avoid
Customer value analysis determines the
benefits that target customers’ value and
how customers rate the relative value of
various competitors’ offers




Identification of major attributes that
customers value and the importance of these
values
Assessment of the company’s and competitors’
performance on the valued attributes

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Competitor Analysis
Selecting Competitors to Attack and Avoid





Strong or weak competitors
Close or distant competitors
Good or bad competitors

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Competitor Analysis
Selecting Competitors to Attack and Avoid

Finding uncontested market spaces

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Competitor Analysis
Designing a Competitive Intelligence System
• Identifies competitive information and the
best sources of this information
• Continually collects information
• Checks information for validity and reliability
• Interprets information
• Organizes information
• Sends key information to relevant decision
makers
• Responds to inquiries about competitors
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Competitive Strategies
Approaches to Marketing Strategy
Entrepreneurial marketing involves visualizing an
opportunity and constructing and
implementing flexible strategies
Formulated marketing involves developing formal
marketing strategies and following them
closely
Intrepreneurial marketing involves the attempt to
reestablish an internal entrepreneurial spirit
and refresh marketing strategies and
approaches
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Competitive Strategies
Basic Competitive Strategies
Michael Porter’s four basic
competitive positioning strategies

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Competitive Strategies
Basic Competitive Strategies

Overall cost leadership strategy:
a company achieves the lowest production
and distribution costs and allows it to
lower its prices and gain market share

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