Marketing midterm – creating competitive advantage & defensive marketing article

Positive strategy
One defensive marketing strategy.
Hold on to customers by emphasizing the perceived advantages of your product, service, or company.
You leverage your strengths and retain customers
Parity strategy
One defensive marketing strategy.
Hold on to customers by matching, neutralizing, or blunting the perceived advantages of the new entrant’s product, service, or company.
You mitigate your rival’s strengths and retain customers
Inertial strategy
One defensive marketing strategy.
Acknowledge that some customers will leave despite your strengths, but offer product or service enhancements that will delay their defection.
Emphasize that benefits lost in the switch may be major ones.
You leverage your strengths and slow the rate of customer loss
Retarding strategy
One defensive marketing strategy.
Acknowledge that some customers will leave because of the new entrants perceived advantages but offer product or service enhancements that will delay their detection.
Emphasize that benefits gained in the switch may be only minor ones.
You mitigate your rival’s strengths and slow the rate of customer loss
Product differentiation
One core strategy competitors use.
They may do this to a broad customer segment (mass marketing) which leads to brand leadership or a narrow customer segment (niche) which leads to customer intimacy.
Sources of this are product quality, service quality, brand personality, and channel quality.
Key strategic marketing focus is on innovation, customer orientation, and uniqueness
Cost advantage
One core strategy competitors use.
They do this to broad customer segments (mass marketing) which leads to cost leadership.
Sources of this are economies of scale, economies of scope, experience curves, and input costs and production efficiency.
Key strategic marketing focus is on cost consciousness, efficiency, and standardization