Thus choosing competitive advantages on which to position a product or service

Thus choosing competitive advantages on which to

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Thus, choosing competitive advantages on which to position a product or service can be difficult, yet such choices may be crucial to success. Choosing the right differentiators can help a brand stand out from the pack of competitors. Value proposition: The full positioning of a brand—the full mix of benefits on which it is positioned.
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In the figure, the five green cells represent winning value propositions—differentiation and positioning that gives the company competitive advantage. The red cells, however, represent losing value propositions. The centre yellow cell represents at best a marginal proposition. Positioning statement: A statement that summarizes company or brand positioning. It takes this form: To (target segment and need) our (brand) is (concept) that (point of difference). Once it has chosen a position, the company must take strong steps to deliver and communicate the desired position to its target consumers. Positioning the company calls for concrete action, not just talk. If the company decides to build a position on better quality and service, it must first deliver that position. Creating Competitive Advantage: Competitive advantage: An advantage over competitors gained by offering consumers greater value than competitors do. Competitor analysis: The process of identifying key competitors; assessing their objectives, strategies, strengths and weaknesses, and reaction patterns; and selecting which competitors to attack or avoid. Competitive marketing strategies: Strategies that strongly position the company against competitors and give the company the strongest possible strategic advantage. Companies must avoid “competitor myopia.” A company is more likely to be “buried” by its latent competitors than its current ones. Strategic group: A group of firms in an industry following the same or a similar strategy. If a company enters a strategic group, the members of that group become its key competitors. A company needs to know each competitor’s product quality, features, and mix; customer services; pricing policy; distribution coverage; sales force strategy; and advertising and sales promotion programs. And it must study the details of each competitor’s research and development (R&D), manufacturing, purchasing, financial, and other strategies.
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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. In some industries, competitors live in relative harmony; in others, they fight constantly. Knowing how major competitors react gives the company clues on how best to attack competitors or how best to defend its current positions.
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