Creating competitive advantage, Marketing Management

Assignment Help:

Creating Competitive Advantage

In marketing two key trends for the twenty-first century are: (a) the trend toward the utilization of relationship marketing to develop customer satisfaction; and (b) the trend toward in-depth competitor analysis as a means of recognizing the company's major competitors (by using both an industry and market-based analysis) and nearly examining and formulating strategy to deal with competitors' objectives, strengths, strategies and weaknesses, and reaction patterns.

A company must consider its competitors to be successful, as well as its real and potential customers. In the procedure of performing a competitor analysis, the company analyzes and gathers information carefully on competitors' strategy and programs. A competitive wise system helps the company obtain and manage competitive information. The company has to then select a competitive marketing strategy of its own. The strategy selected depends on the company's industry position and its opportunities, objectives and resources. In the chapter many basic competitive strategies are outlined. Some of these are time-tested and relatively new. The first is that of the market leader that faces three challenges: expanding the overall market, defensive market share, and expanding market share. The market leader is interested in discovering ways to expand the overall market because it will benefit most from any growing sales. The leader must also have an eye toward defensive its share. Many strategies for accomplish this protection task are presented. Aggressive leaders also attempt to expand their own market share. The second position is of the market challenger. It is a firm that insistently tries to expand its market share by attacking the manager, other runner-up firms, or smaller firms in the industry. The third position is of the market follower which is designated like a runner-up firm that select not to rock the boat (typically out of fear that it stands to lose more than it may gain). At last, the market niche is a position choice open to smaller firms that serve some of the part of the market that is not likely to draw the attention of the big firms. These firms frequently survive by being specialists in some of the function that is striking to the marketplace. The competitive analysis of the four competitive position options existing. This information may be used by every mid-level tactical planner who seeks insight into competitive scheme dynamics.


Related Discussions:- Creating competitive advantage

How can marketing decision support system, What decisions do companies face...

What decisions do companies face in designing a sales force? How can marketing decision support system help marketing manager towards making better decisions?

Essay, Consumer mind is black box. Discuss

Consumer mind is black box. Discuss

Explain about the increased benefits by retaining customers, Explain about ...

Explain about the increased benefits by retaining customers of a firm. Increased Revenue: When a customer stays along with a company for longer time, the possibilities of

Caselet, considering the concept of product life cycle, where would you put...

considering the concept of product life cycle, where would you put video games in their life cycle

The project be completed or abandoned, The government has undertaken a high...

The government has undertaken a highway bridge project that was originally projected to cost $2 million and provide benefits of $2.5 million.  Unfortunately, the costs have been mu

Explain about the promotion strategies, Explain about the Promotion Strateg...

Explain about the Promotion Strategies. Promotion Strategies: The promotion strategies of a global marketing organization comprise advertising, promotion, sales, publicit

Case study, Cascade Soap Company Mike Bowers sells soap products to grocery...

Cascade Soap Company Mike Bowers sells soap products to grocery wholesalers and large retail grocery chains

What are the intangible goods, What are the Intangible Goods Intangi...

What are the Intangible Goods Intangible goods refer to services provided to individual consumers or to organisational buyers (industrial, institutional, commercial, governm

Competition oriented pricing, Competition Oriented pricing : competitive or...

Competition Oriented pricing : competitive oriented pricing methods are regular in a competitive economy. The methods in this category rest on  the  principle  of  competitive  par

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd