Choosing the Right Competitive Advantage How many differences to promote o Many

Choosing the right competitive advantage how many

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Choosing the Right Competitive Advantage How many differences to promote: o Many marketers think that companies should aggressively promote only one benefit to the target market o A company should develop a unique selling proposition (USP) for each brand and stick to it Other companies think that companies should position themselves on more than one differentiator Which differences to promote: o A difference is worth establishing to the extent that it satisfies the following criteria Important Distinctive Superior Communicable Pre-emptive Affordable Profitable Selecting an Overall Positioning Strategy The full positioning of a brand is called the brand’s value proposition – the full mix of the benefits on which a brand is differentiated and positioned 5 winning value propositions: 1) More-for-more positioning involves providing the most upscale product or service and charging a higher price to cover the higher costs 2) More-for-same companies can attack a competitor’s more-for-more positioning by introducing a brand offering comparable quality at a lower price 3) Same-for-less offering “the same for less” can be powerful value proposition – everyone likes a good deal 4) Less-for-much - less a market almost always exists for products that offer less and therefore cost less - “less-for-much-less” positioning involves meeting consumers’ lower performance or quality requirements at a much lower price. 5) More-for-less of course, the winning value proposition would be to offer “more for less”. Developing a Positioning Statement
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Company and brand positioning should be summed up in a positioning statement. The statement should follow this form: To (target segment and need) our (brand) is (concept) that (point of difference). A product’s position should evolve gradually as it adapts to the ever-changing marketing environment. 7. describe the three major steps in analyzing competition. (textbook, pp. 599–606) 1) Identifying the company’s competitors at the narrowest level, a company can define its competitors as other companies offering similar products and services to the same customers at similar prices companies can identify their competitors from an industry point of view and from a market point of view 2) Assessing competitors’ objectives, strategies, strengths and weaknesses, and reaction patterns Determining competitors objectives ; the company wants to know the relative importance that a competitor places on current profitability, market share growth, cash flow, technological leadership, services leadership and other goals. o knowing a competitors mix of objectives reveals whether the competitor is satisfied with its current situation and how it may react to different competitive actions Identifying competitors strategies – a strategic group is a group of firms in an industry following that same of a similar strategy in a given target market **competition is most intense within a strategic group
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