Exam 2 Flashcards
Textbook material
What is competitive intelligence?
methods and strategies that help transform competitor information into relevant information about their size, position, and trends in the market.
How do companies gain competitive intelligence?
they collect, analyze, and communicate the best available information outside of their organization.
Where can we find competitor information?
The competitor website will showcase what products they offer and what market they’re aiming to target.
How are retail partners and wholesale distributors useful when analyzing a competitor?
retail partners primarily sell highly trafficked products, which provide high turn-around and profit.
wholesale distributors primarily carry products that are either not as popular, or products that have been experiencing supply chain issues.
What is benchmarking?
comparing a companies products to those of competitors, and attempting to find strengths and weaknesses of yours and others product portfolios.
What is a customer value analysis?
determines what platform attributes and features are valuable to target customers
What percentage of successful new products have main benefits that are important to customers?
80%
What percentage of successful new products have new and unique features?
62%
What percentage of successful new products have compelling value?
66%
What percentage of successful new products are superior in terms of meeting customer needs?
59%
What percentage of successful new products have superior quality VS competitors?
59%
What are market positional strategies?
application of market strategies that best fit your market share position, measured in units or dollars.
Market leader
largest share of target market (approx. 40%)
Market challengers
runner-up firms that desperately want to increase their share in the market (approx. 30%)
Market followers
other runner-ups that want to hold their market share without interference from competitors (approx. 20%)
What does best in class mean?
products that meet customer needs w/ superior quality than competitors
Market niches
remaining firms that serve small segments that the larger firms don’t pursue (approx. 10% or less)
Market leader position characteristics
defend their market position
find ways to increase market and market share
quickly address weaknesses and constantly innovate their marketing mix
Market challenger position characteristics
attacks on market leaders, both direct and indirect
always look to capture market share
acquire smaller competitors to increase market share
Market follower position characteristics
pursue opportunities that don’t illicit response from leaders
they look to attack with functional alternatives to already existing products
Niche market position characteristics
tries to carve out small portion of market
solves a niche problem to not illicit any sort of response
Why don’t niche markets illicit response?
often times, the R&D to compete with such a niche solution of a smaller firm does not appeal to massive companies
they prefer to pursue bigger ventures and solutions
Example of Niche company
Pink Sheep Design
3d printed crochet hooks that other companies don’t try and compete against
market is so small and other companies don’t want to be that intimate with customers
Competitor analysis
learning all we can about competitors that might influence our ability to meet goals
Regulatory activity
regulations by agencies, legislature, or jurisdiction that can affect a company’s development of future products.
Legislative activity
writing and passing of laws that can affect the function of current or future products
Government influencers
companies and people that seek to influence the legislative process such as lobbyists for competitors or people that are interested in driving legislative actions
Government incentive programs
structured rewards and incentives for both companies and target markets to behave a certain way
product marketers beware!
Economic conditions
inflation can drive up costs of production, and limit a markets purchasing power
