Chapter 18 Creating Competitive Advantage

Competitive advantages

require delivering more value and satisfaction to target consumers than competitors

Competitive marketing strategies

how companies analyze their competitors and develop value-based strategies for profitable customer relationships to give them the strongest possible strategic advantage

Competitor analysis

is the process of identifying, assessing, and selecting key competitors

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 to increase the company's effectiveness

Customer value analysis

determines the benefits that target customers' value and how customers rate the relative value of various competitors' offers

Blue Ocean strategy

finding uncontested market spaces - make competition irrelevant

Overall cost leadership strategy

a company achieves the lowest production and distribution costs and allows it to lower its prices and gain market share

Differentiation strategies

a company concentrates on creating a highly differentiated product line and marketing program so it comes across as an industry class leader

Focus strategy

a company focuses its efforts on serving few market segments well rather than going after the whole market

Operational Excellence

refers to a company providing value by leading its industry in price and convenience by reducing costs and creating a lean and efficient value delivery system

Customer Intimacy

refers to a company providing superior value by segmenting markets and tailoring products or services to match the needs of the targeted customers

Product Leadership

refers to a company providing superior value by offering a continuous stream of leading-edge products or services.

Market Leader Strategies

Expand total market demand, Product current market, Expand market share

Market Challenger Strategies

Challenge the leader, Second mover advantage

Challenge the Leader

an aggressive bid for more market share

Second Mover Advantage

challenger observes what has made the leader successful and improves on it

Market Nicher Strategies

an ideal market niche is big enough to be profitable with the hight growth potential and has little interest from competitors

Competitor-centered Company

spends most of its time tracking competitors' moves and market shares and trying to find ways to counter them

Customer-centered Company

spends most of its time focusing on customer developments in designing strategies

Market-centered Company

spends most of its time focusing on both their competitors and their customer in designing strategies