Chapter 5 Flashcards
Competition:
Companies or individuals who provide similar products, services, or benefits as perceived by your target customer
3 types of competition and descriptions of each:
- Direct (first level): companies or individuals that offer the same products or services as perceived by the target customer.
- Indirect (second level): companies or individuals that offer the same benefits as perceived by the target customer.
- Invisible competition: people or businesses that have the capacity or desire to provide the same products, services, or benefits that you do.
Competitive intelligence:
The process of learning, collecting, and using information about your competitors for the purpose of growing your business
Competitive intelligence requires a well-researched understanding of:
- your target customers
- your current competition
- your future customer
10 common goals of competitive intelligence:
- Improve your product features (especially price).
- Improve your customer service.
- Find new ways to distribute your product/service.
- Improve your advertising and promotions.
- Develop more efficient production processes.
- Reduce your reaction and delivery time.
- Add value to your product or service.
- Find new alliances and strategic partners.
- Find new ways to grow your current product/service.
- Develop new product/service opportunities.
Competitive touchpoint analysis:
Analyzing customers’ perceptions of the competition to find out what benefits and features are important to them.
A touchpoint is….
Any contact that your customer has with any aspect of your competition
Making a list of all the touchpoints allows you to …
Identify your competitors’ strengths and weaknesses
A distinctive competency:
unique features and benefits that attract customers and encourage customer loyalty
Other than touchpoint analysis, list 10 other sources of competitive information.
- Suppliers
- Trade shows and conferences
- Competitors’ literature
- Industry and association journals
- Resource centres
- Trade magazines
- Industry internet analysis
- Company website analysis
- Franchise information
- Internet news groups
Competitor profile includes data needed to effectively _____, ______, and ______ competitors and their behaviour.
- identify
- classify
- track
10 elements of a competitor profile:
- Company identification
- Stature and credibility of the company
- Proprietary assets
- Product design/services and innovation
- Operations (production/service capacity)
- Marketing and sales approach
- Marketing strategy and pricing
- Distribution
- Management resources
- Finance
Competitive positioning:
the process of establishing unique benefits and features that the target customer values relative to the competition
3 broad competitive strategies:
- Niche or focus strategy
- Differentiation strategy
- Cost leadership strategy
2 methods to evaluate potential competitors and descriptions of each:
- Competitive test matrix: a grid showing the strengths and weakness of your competitors
- Competitive SWOT: for each competitor evaluate its internal strengths and weaknesses and external opportunities and threats
