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Objective 18-1 Discuss the need to understand competitors as well as customers through competitor analysis. Objective 18-2 Explain the fundamentals of competitive marketing strategies based on creating value for customers. Objective 18-3 Illustrate the need for balancing customer and competitor orientations in becoming a truly market-centered organization.
Competitive advantage
An advantage over competitors gained by offering greater customer value either by having lower prices or providing more benefits that justify higher prices.
Competitive marketing strategies
Strategies that strongly position the company against competitors and give it the greatest possible competitive advantage.
Competitor analysis
Identifying key competitors; assessing their objectives, strategies, strengths and weaknesses, and reaction patterns; and selecting which competitors to attack or avoid.
Benchmarking
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. [18.1]
Customer value analysis
An analysis conducted to determine what benefits target customers value and how they rate the relative values of various competitors’ offers. [18.1]
Strategic group
A group of firms in an industry following the same or a similar strategy. [18.1]
Market challenger
A runner-up firm that is fighting hard to increase its market share in an industry. [18.2]
Market follower
A runner-up firm that wants to hold its share in an industry without rocking the boat. [18.2]
Market leader
The firm in an industry with the largest market share. [18.2]
Market nicher
A firm that serves small segments that the other firms in an industry overlook or ignore. [18.2]
Competitor-centered company
A company whose moves are mainly based on competitors’ actions and reactions. [18.3]
Customer-centered company
A company that focuses on customer developments in designing its marketing strategies and delivering superior value to its target customers. [18.3]
Market-centered company
A company that pays balanced attention to both customers and competitors in designing its marketing strategies. [18.3]
