By trying to be good at all value disciplines, a company usually ends up being best at none. Market leader: The firm in an industry with the largest market share. Market challenger: A runner-up firm that is fighting hard to increase its market share in an industry. Market follower: A runner-up firm that wants to hold its share in an industry without rocking the boat. Market nicher: A firm that serves small segments that the other firms in an industry overlook or ignore.
To remain number one, leading firms can take any of three actions. First, they can find ways to expand total demand. Second, they can protect their current market share through good defensive and offensive actions. Third, they can try to expand their market share further, even if market size remains constant. What can the market leader do to protect its position? First, it must prevent or fix weaknesses that provide opportunities for competitors. It must always fulfill its value promise. Its prices must remain consistent with the value that customers see in the brand. It must work tirelessly to keep strong relationships with valued customers. Best response is continuous innovation Competitor-centred company: A company whose moves are mainly based on competitors’ actions and reactions. Customer-centred company: A company that focuses on customer developments in designing its marketing strategies and delivering superior value to its target customers. Clearly, the customer- centred company is in a better position to identify new opportunities and set long-run strategies that make sense. In practice, today’s companies must be market-centred companies , Market-centred company: A company that pays balanced attention to both customers and competitors in designing its marketing strategies.
Lesson 7: Chapters 9 & 10 - Product, Branding, and Life-Cycle Strategies Product: Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need. Service: An activity, benefit, or satisfaction offered for sale that is essentially intangible and does not result in the ownership of anything. Today, as products and services become more commoditized, many companies are moving to a new level in creating value for their customers. To differentiate their offers, beyond simply making products and delivering services, they are creating and managing customer experiences with their brands or company. Products and services fall into two broad classes based on the types of consumers that use them: consumer products and business products. Consumer product: A product or service bought by final consumers for personal consumption. Convenience product: A consumer product or service that customers usually buy frequently, immediately, and with minimal comparison and buying effort.
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