Marketing Chapter 18 Quiz

Competitive Advantage
An Advantage over competitors by offering consumers greater value.
Competitor Advantage
Identifying key competitors, accessing their objectives strategies, strengths and weaknesses, and reaction patterns.
Competitive Market Strategies
Strategies that strongly position and give it the greatest possible competitive advantage, Must constantly compare companies strategies with others.
Competitor Myopia
A company is more likely to be buried by latent competitors, than by the current ones.
Industry Point of View
Focusing on whole industry Ex. Oil
Market Point of View
Companies are competing for same customer group, trying to establish same relationship.
Identify the Competitors
First Step in Analyzing Competitors
Assessing Competitors strategies weaknesses, reactions
Second Step in Analyzing Competitors
Selecting which competitors to attack or avoid
Third Step in Analyzing Competitors
Strategic Group
Group of firms in an industry following the same or similar strategies in a given target market
Benchmarking
Comparing products and processes to competitors or leading firms in other industries to identify best practices and finding ways to improve
Customer Value Analysis
Analysis to determine what benefits target customers value and how they rate value of various competitors offers.
First Step of Value Analysis
Start by finding major attributes customers value
Second Step of Value Analysis
Test performance against competitors of those Values
Close or Distant Competitors
Have to be careful to not destroy smaller competitors so that bigger companies fill place, or get involved in price wars or competitions with bigger companies with far more resources
Good Competitors
Follow rules of business segment.
Bad Competitors
Do what they want and don’t care if they muck up the industry
Blue Ocean Strategies
Try to create products and services for which there are no direct competitors, create whole new category and market for new service.
Competitive Intelligence System
Find vital types of competitive information, giure outwhere to find, get it, check it out, organize it, then send relevant info to decision makers.
Entrepreneurial Marketing
Grass Roots esqe. Going around trying to promote your product in unusual creative ways when a business is just first starting to gain small market share. Used by newer, smaller, businesses.
Formulated Marketing
As small companies achieve success, they move towards a more formal type of marketing. Used by middle tear companies with research and planned strategies.
Interpreneurial Marketing
Going back to an entrepreneurial type of marketing after being stuck in formulated. Try to go back to the innovative, creative side of marketing.
Overall Cost Leadership Comp. Strategy
Works to have lowest production and distribution costs. Low costs means lower prices and ability to win large market share.
Differentiation Comp. Strategy
Focus on highly differentiated product line and marketing program. Comes across as class leader, and great if price isn’t too high.
Focus Comp. Strategy
Company focuses on serving a few segments well instead of going after whole market.
Middle-Of-Roaders
Tying to provide multiple comp strategies, but overall providing none of them extremely well, leaving it in a position of offering lower customer value.
Operational Excellence; Value Discipline
The company provides superior value by leading in price and convenience. Low costs and efficient value delivery system.
Customer Intimacy; Value Discipline
Creates value by precisely segmenting its markets to match target needs. Class Relationship and intimate knowledge of consumer.
Product Leadership; Value Discipline
Superior value by leading in superior products, makes to make own products obsolete. Serves customers who want state of the art products.
Market Leaders
Holds overall highest market share.
Market Challengers
Runner up firms fighting hard to increase their market share by taking on leader or taking over market follower.
Market Follower
Other runner ups that don’t want to rock the system.
Market Nichers
Firms that hold small segments that aren’t being pursued by other larger firms.
Expanding Total Demand
Focus on creating new uses, new users, and more usage for a product to increase demand.
Protecting Market Share
Use of continuous innovation and other market plans to continue to hold market share.
Continuous Innovation
Going on the offensive and never being satisfied with product and market strategy.
Expanding Market Share
Try and grow share because there is usually a correlation between share size and profits when cost falls with increase market share.
Second Mover Advantage
Strategy by market challenger; observes what market leader is doing to be successful and then improves on that strategy and uses for itself.
Frontal Attack
Used by market challenger; goes directly head on with market leader by matching their distribution, advertising, product and price efforts. Attack the strengths of a company rather than its weaknesses.
Indirect Attack
Used by market challenger; attacking weaknesses and gaps in competitors market coverage to establish footholds in big companies market share that they have trouble responding too.
Market Follower Strategy
Be original enough to take customers from other market leaders by offering specific customer value, but not being big enough or similar enough to get smashed or swooped.
Specialization
Market Nicher Strategies; serve specific group of people far better than larger companies can with specialized offering.
Niche Marketing can specialize in
End users, customer size(group), and specific customers(selling entirely to one company)
Geographic Market
Selling only in certain location
Quality Price
Specifically one end of market, high or low
Service Nichers
Services not provided by other companies.
Multiple Niching
Developing 2 or more niches at once to make sure that you are always successful incase one of your niches goes down.
Balancing Customer and Competitor Orientation
Must not spend to much money/time tracking other companies.
Competitor Centered Company
Spend most of time and effort tracking competitors moves and finding strategies to counter competitors. Pros-Becomes fighter watches for weaknesses on both sides. Cons- can become too reactive and loos innovation for its own ideas.
Customer Centered Company
Focuses on customer development and it’s own market strategies. Pros-In better position to reach new customers and better serve them by knowing how needs change. Cons-Can become unaware of other competitors.
Market Centered Company
Watching both customers and competitors for good mix of customer focusing and competitor watching.
Product Orriented Company
Focuses on Neither customers or competitors but just on its product.