Strategic marketing presentation, Basic competitive advantage

1. Welcome to my
Presentation

2. Special Thanks to :
Md. Salah Uddin
Lecturer
Accounting and information Systems
Jagannath University
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3. Presented by :
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Sourov Shaha Suvo

4. My Topic
Creating Competitive
Advantage
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5. The need to understand competitors as well as customers
through competitor analysis
# Competitor Analysis includes :
1. Identifying Competitors
2. Assessing Competitors
3. Determining Competitor’s Objectives
4. Identifying Competitor’s Strategies
5. Assessing Competitor’s Strengths and Weaknesses
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6. The need to understand competitors as well as customers
through competitor analysis
# Competitor Analysis includes :
6. Estimating Competitor’s Reactions
7. Selecting Competitors to Attack and Avoid
8. Close or Distant Competitors
9. Good or Bad Competitors
10. Designing a Competitive Intelligence System
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7. The need to understand competitors as well as customers
through competitor analysis
Identifying Competitors :
• All firms making the same product or class of
products.
• All firms making products that supply the same
service.
• All firms competing for the same consumer
dollars.
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8. The need to understand competitors as well as customers
through competitor analysis
Assessing Competitors :
• Competitor’s objectives
• Competitor’s strategies
• Competitor’s strengths and weaknesses
• Competitor’s actions and reactions
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9. The need to understand competitors as well as customers
through competitor analysis
Determining Competitor’s Objectives :
• Profitability
• Market share growth
• Cash flow
• Technological leadership
• Service leadership
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10. The need to understand competitors as well as customers
through competitor analysis
Identifying Competitor’s Strategies :
• Product quality
• Product features
• Customer service
• Pricing policy
• Distribution coverage
• Sales force strategy
• Promotion programs
• Financial strategies
• R&D
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11. The need to understand competitors as well as customers
through competitor analysis
Assessing Competitor’s Strengths and Weaknesses :
• Primary data
• Secondary data
• Personal experience
• Word of mouth
• Benchmarking
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12. The need to understand competitors as well as customers
through competitor analysis
Good Competitors :
• Increase total demand
• Share costs of market and product development
• Legitimize new technologies
• Provide more product differentiation
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13. The need to understand competitors as well as customers
through competitor analysis
Bad Competitors :
• Try to share rather than earn in the market
• Take large risks
• Create disruption
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14. The need to understand competitors as well as customers
through competitor analysis
Designing a Competitive Intelligence System
• Identifies competitive information and the best sources
of this information
• Continually collects information
• Checks information for validity and reliability
• Interprets information
• Sends key information to relevant decision makers
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15. Fundamentals of competitive marketing strategies
based on creating value for customer
# Competitive Strategies
Michael Porter’s four basic competitive positioning strategies
• Overall cost leadership
• Differentiation
• Focus
• Middle-of-the-roaders
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16. Fundamentals of competitive marketing strategies
based on creating value for customer
# Competitive Strategies
Michael Treacy and Fred Wiersema suggest companies can
gain leadership positions by delivering superior value to
their customers in three strategies or “value disciplines”
• Operational excellence
• Customer intimacy
• Product leadership
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17. Fundamentals of competitive marketing strategies
based on creating value for customer
# Competitive Strategies
Competitive Positions
• Market leader strategy
• Market challenger strategy
• Market follower strategy
• Market nicher strategy
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18. Fundamentals of competitive marketing strategies based
on creating value for customer
# Competitive Strategies
Market Leader Strategies
Expand market share by:
• Increasing market share in served markets, thus
increasing profitability
• Producing high-quality products
• Creating good service experiences
• Building close customer relationships
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19. Fundamentals of competitive marketing strategies based
on creating value for customer
# Competitive Strategies
Market Challenger Strategies
◈ Challenge the leader with an aggressive bid for
more market share
◈ Play along with competitors and not rock the
boat
◈ Challenges firms its own size or smaller
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20. Fundamentals of competitive marketing strategies based
on creating value for customer
# Competitive Strategies
Market follower Strategies
A market follower is, a company that follows what the
leader in its sector does. A market follower does not like
taking risks. Instead, it waits and observes what its
competitors do, especially the market leader. It then only
adopts the leader’s successful strategies.
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21. Fundamentals of competitive marketing strategies based
on creating value for customer
# Competitive Strategies
Market Nicher Strategies
Key to market niching is specialization
• Market
• Customer
• Product
• Marketing mix
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22. The need for balancing customer and competitor
orientations
# Balancing customer and competitor orientations
Companies need to continuously adapt strategies
to changes in the competitive environment
• Competitor-centered company
• Customer-centered company
• Market-centered company
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23. The need for balancing customer and competitor
orientations
# Balancing customer and competitor orientations
Competitor-centered company spends most of
its time tracking competitor’s moves and market
shares and trying to find ways to counter them
◈ Advantage is that the company is a fighter
◈ Disadvantage is that the company is reactive
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24. The need for balancing customer and competitor
orientations
# Balancing customer and competitor orientations
Customer-centered company spends most of
its time focusing on customer developments in
designing strategies.
Provides a better position than competitor-
centered company to identify opportunities and
build customer relationships
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25. The need for balancing customer and competitor
orientations
# Balancing customer and competitor orientations
Market-centered company spends most of its
time focusing on both competitor and customer
developments in designing strategies
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