Lecture 5 Flashcards
Competitive forces which influence an industry’s attractiveness, 6 forces create the profitability potential for an industry.
- Potential entrants 2. Buyers 3. Complements 4. Suppliers 5. Substitutes 6. Rivalry among existing firms
What is Competitive advantage
Something a company does that has value for consumers and that competitors cannot match.
SWOT analysis
Strength, weakness, opportunity, threats
Competitive advantages of different kind
Cost advantages: 1. Variable cost 2. Marketing expense 3. Operating expense
Differentiation advantage: 1. Product differentiation 2.Service quality 3. Brand reputation
Marketing advantage: 1. Product line advantage 2. Chanel advantage 3. market leader
Components of market attractiveness
Market forces: market size, growth size, buyer power
competitive environment: No. of competitors, ease of competitor entry, Price rivalry
Market access: Customer familiarity, channel access, sales requirements
offensive strategies for marketing plan
- Invest to grow 2. Improve position 3. New market entry
Defensive strategies for marketing plan
- Protect position 2. Optimizing position 3. Monetize 4. Harvest/Divest
Different market positions
- Leader 2. Challenger 3. Follower 4. Nicher
Resources: What the companies have
- Customer relationship 2. CRM database 3. Brand equity 4. Distribution channel database 5. retail stores 6. Marketing communication creative platform 7. Marketing communication and media budget
Capabilities: what can companies do?
- Market sensing 2. Customer relationship management 3. Brand management 4. Channel relationship management 5. R&D 6. Market research 7. Marketing communication 8. Pricing flexibility
Blue ocean strategy
- create uncontested market space
- Make the competition irrelevant
- Break the value cost break off
- Create and capture new demand
Red ocean strategy
- compete in existing market space
- beat competition
- make value/cost break off
- exploit existing demand
Offensive strategies which managers can use to target market leaders
- Comparative advertising
- first mover advantage
- imitation
- price
Defensive strategies which managers can use to target market leaders
- Steadfast Marketing Support
- Strong Customer Relationships
- Market Coverage
- Legal Protection
- launch fighter brands
- Retaliation
switching costs
Any negative repercussions that consumers would
experience should they switch brands or products, whether monetary,
psychological, social, or convenience-based.
share of voice
A metric that measures a particular company’s level of media
spending as a proportion of the total media spend in the category.
fast follower
A company that competes by imitating the innovation of other market competitors and bringing a product or service to market quickly, saving research and development costs and capitalizing on the innovation of others.
network effects
Phenomena whereby goods or services become more valuable
when more people use them.
