class12

MARKETING

What are the three steps of Competitor Analysis?

1. Identifying the company's competitors.

2. Assessing competitors' objectives, strategies, strengths/weaknesses, and reaction patterns.

3. Selecting which competitors to attack or avoid.

Define the four Competitive Market Positions.

Market Leader: Holds the largest market share.

Market Challenger: Runner-up firm fighting to increase its share.

Market Follower: Runner-up firm that wants to hold its share without "rocking the boat."

Market Nicher: Serves small segments that are often overlooked by larger firms.

Match the Competitive Market Positions with their primary strategies.

Leaders: Expand total market, protect market share, expand market share.

Challengers: Full frontal attack, indirect attack.

Followers: Follow closely, follow at a distance.

Nichers: Niche by customer, market, quality, price, or service; multiple niching.

What is Competitive Advantage?

An advantage over competitors gained by offering consumers greater value, either through lower prices or by providing more benefits that justify higher prices.

What are the five ways a company can differentiate itself?

Product differentiation

Services differentiation

Channels differentiation

People differentiation

Image (Brand) differentiation

When should a company position itself on MORE than one differentiator?

It makes sense to position on multiple differentiators particularly when two or more firms are claiming to be the best on the exact same attribute.

A difference is only worth establishing if it meets which 7 criteria?

Important, Distinctive, Superior, Communicable (visible), Preemptive (hard to copy), Affordable, and Profitable.

What two factors make for "Great Positioning"?

1. Differentiated/Ownable: You offer something different and better from the competition.

2. Meaningful/Relevant: Consumers actually care about the differentiator and want it.

What are the four basic Competitive Positioning Strategies?

Overall cost leadership: Achieving the lowest production/distribution costs to lower prices and gain share.

Differentiation: Creating a highly differentiated product line/marketing program for class leadership.

Focus: Serving a few market segments well instead of the whole market.

Middle of the road: (Note: This is generally considered a failing strategy).

If a company is NEITHER customer-centered NOR competitor-centered, what type of orientation do they have?

Product orientation.
("Myopic!" because it means the company is dangerously narrow-minded, focusing only on their own product rather than the market.)

If a company is competitor-centered but NOT customer-centered, what type of orientation do they have?

Competitor orientation.

If a company is competitor-centered but NOT customer-centered, what type of orientation do they have?

Competitor orientation.

If a company is customer-centered but NOT competitor-centered, what type of orientation do they have?

Customer orientation.

If a company is BOTH customer-centered AND competitor-centered, what type of orientation do they have?

Market orientation. (This is the "sweet spot" highlighted in green where companies build profitable relationships by understanding both the buyers and the rivals.)

What are the three Value Disciplines?

Operational Excellence: Leading in price and convenience via lean, efficient systems.

Customer Intimacy: Segmenting markets and tailoring products to exact targeted needs.

Product Leadership: Offering a continuous stream of leading-edge products and quickly bringing new ideas to market.

(Pro Tip: Companies should excel at ONE discipline while meeting industry standards on the other two.)

What is a Value Proposition?

The full mix of benefits on which a brand is differentiated and positioned. It highlights unique features and answers the customer's core question: "Why should I buy your brand?"

What is a Positioning Statement and what is the formula?

It is a statement used to "crystalize" in words who your customer is and why they buy your product over the competition.

The Formula: Especially for (Target Audience), Brand X is the (Descriptor) that (functional/emotional benefits) because (Reasons to Believe).