CH. 18 Creating Competitive Advantagea.Competitive Advantage:AN advantage over competitorsgained by offering consumers great valueb.Competitor Analysis:IDENTIFYING KEY COMPETITORS;ASSEING THEIR OBJECTIVES, STRATEGIES, STRENGHTS ANDWEAKNESSES, AND REACTION PATTERNS; AND SELECTINGWHICH COMPETITORS TO ATTACK OR AVOID.c.Competitive Marketing Strategies:Strategies that stronglyposition the company against competitors and give it thegreatest possible competitive advantageII.Competitor Analysisi.To plan effective marketing strategies, a company needs tofind out all it can about competitors.ii.b.Identifying Competitors:i.Companies must avoid competitor myopia; A company ismore likely to be “buried” by its latent competitors than itscurrent onesii.Companies can identify their competitors from an industrypoint of view. They must understand the competitivepatterns in its industry if it hopes to be an effective playerin that industryiii.Companies can also identify competitors from a marketpoint of view. Here they define competitors as companiesthat are trying to satisfy the same customer need or buildrelationships with the same customer groupc.Assessing Competitors:i.Having identified the main competitors, the marketingmanagement now asks: What are the competitor’sobjectives? What does each seek in the marketplace? Whatis each competitor’s strategy? What are various
competitors’ strengths and weaknesses, and how will eachreact to actions the company might take?ii.All firms competing for the same consumer dollarsd.Determining Competitor’s Objectives:i.Each competitor has a mix of objectives; The companywants to know the relative importance that a competitorplace son current profitability, market share growth, cashflow, technological leadership, service leadership, andother goals.ii.Knowing this information reveals whether the competitor issatisfied with its current situation and how it might react todifferent competitive actions.iii.A company must also monitor its competitors’ objectivesfor various segments. If the company finds that acompetitor has discovered a new segment, this might bean opportunity.iv.If it finds out that competitors plan new moves intosegments now served by the company. It will beforewarned.e.Identifying Competitors’ Strategies:i.The more that one firm’s strategy resembles another firm’sstrategy, the more the two firms compete.