Competititve Marketing Strategies

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Competititve Marketing Strategies

  1. 1. COMPETITIVE MARKETING STRATEGIES K V PRABHAKAR
  2. 2. Sustainable Competitive Advantage <ul><li>Unique, different, or superior </li></ul><ul><li>Valued by customers </li></ul><ul><li>Sustainable </li></ul><ul><li>Few competitors or few substitutes </li></ul><ul><li>Barriers to entry </li></ul>
  3. 3. Sources of Competitive Advantage <ul><li>Operational position </li></ul><ul><li>Scale effects </li></ul><ul><li>Cost and demand synergy </li></ul><ul><li>Brand or firm equity </li></ul><ul><li>Customer relationships </li></ul><ul><li>Spatial preemption </li></ul><ul><li>Service package </li></ul><ul><li>Information technology </li></ul>
  4. 4. Service Life Cycle Introductory Growth Maturity Decline
  5. 5. Introductory Stage <ul><li>Few or no competitors </li></ul><ul><li>Low profit margins </li></ul><ul><li>Negative cash flows </li></ul><ul><li>Market segments not well defined </li></ul><ul><li>Involve users in service design </li></ul><ul><li>Identify early adopters </li></ul><ul><li>Develop prototypes </li></ul><ul><li>Obtain feedback from early adopters </li></ul><ul><li>Build industry demand </li></ul><ul><li>Use introductory offers </li></ul><ul><li>Stimulate positive word-of-mouth communications </li></ul>Characteristics Strategies
  6. 6. Growth Stage <ul><li>Rapid industry growth </li></ul><ul><li>Positive cash flows </li></ul><ul><li>Higher profits </li></ul><ul><li>Influx of new firms </li></ul><ul><li>Increased competition </li></ul><ul><li>Development of distinct market segments </li></ul><ul><li>Develop a competitive advantage </li></ul><ul><li>Develop brand preference </li></ul><ul><li>Develop firm loyalty or repeat purchase behavior </li></ul>Characteristics Strategies
  7. 7. Maturity Stage <ul><li>Industry sales stagnant </li></ul><ul><li>Intense competition </li></ul><ul><li>Shaking out of weaker firms </li></ul><ul><li>Distinct market segments </li></ul><ul><li>Brand parity within industry </li></ul><ul><li>Reduce operating costs </li></ul><ul><li>Enhance technical and functional service quality </li></ul><ul><li>Concentrate on specific market segments </li></ul><ul><li>Add complementary services </li></ul><ul><li>Use persuasive advertising </li></ul><ul><li>Match competitors’ sales promotions </li></ul><ul><li>Develop competitive advantage </li></ul>Characteristics Strategies
  8. 8. Decline Stage <ul><li>Declining industry sales </li></ul><ul><li>Less competition </li></ul><ul><li>Lower cash flows </li></ul><ul><li>Declining profit </li></ul><ul><li>Divestment </li></ul><ul><li>Harvest </li></ul><ul><li>Pruning </li></ul><ul><li>Retrenchment </li></ul><ul><li>Rejuvenation </li></ul>Characteristics Strategies
  9. 9. Defending Your Market Share <ul><li>Blocking strategies </li></ul><ul><li>Retaliation strategies </li></ul><ul><li>Adaptation strategies </li></ul>
  10. 10. Blocking Strategies <ul><li>Performance guarantees </li></ul><ul><li>Intensive advertising </li></ul><ul><li>Controlling location or access </li></ul><ul><li>Higher switching costs </li></ul><ul><li>Satisfied customers </li></ul>Goal: To prevent new companies from entering the market by increasing the cost of success or reducing the anticipated rewards.
  11. 11. Retaliation Strategies <ul><li>Reducing service trail </li></ul><ul><li>Fight aggressively to maintain market share </li></ul>Goal: To prevent new companies from earning their anticipated profit and thus they would consider leaving the industry.
  12. 12. Adaptation Strategies <ul><li>Match the new entrant’s offers </li></ul><ul><li>Expand the service package </li></ul><ul><li>Develop a service niche </li></ul>Goal: Find ways to adapt to the new firm being a competitor.
  13. 13. Consumer Positioning <ul><li>Service attributes </li></ul><ul><li>Use or application </li></ul><ul><li>Service class </li></ul><ul><li>Service user </li></ul><ul><li>Competitor </li></ul><ul><li>Price/quality relationship </li></ul>
  14. 14. Price High Low Low High Quality Pizza Hut Domino’s Pizza Mazzio’s Pizza Pyramid Pizza Little Caesar’s
  15. 15. Developing a Positioning Strategy <ul><li>Identify competitors </li></ul><ul><li>Assess consumers perception of each firm </li></ul><ul><li>Determine position of each firm </li></ul><ul><li>Analyze consumer preferences </li></ul><ul><li>Make a positioning decision </li></ul><ul><li>Implement the positioning strategy </li></ul>
  16. 16. SUMMARY OF MARKETING STRATEGIES FOR SERVICE FIRMS
  17. 18. DO YOU HAVE ANY LEGITIMATE AND REASONABLE QUESTIONS FOR ME?
  18. 19. THANK YOU DO YOU HAVE ANY LEGITIMATE AND REASONABLE QUESTIONS FOR ME?

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