Creating competetive advantage, global market place,
• To win in today’s marketplace, companies must becomeadapt not just in managing products, but in managingcustomer relationships in the face of determinedcompetition. Building profitable customer relationships andgaining competitive advantage requires delivering morevalue and satisfaction to target consumers than competitorsdo.• Customers see competitive advantages as customeradvantages.• The first step is competitor analysis—• the process of identifying, assessing, and selecting keycompetitors.• The second step is developing competitive marketingstrategies that strongly position the company againstcompetitors and give it the greatest possible competitive
• Identifying Competitors: Companies must avoid“competitor myopia.” A company is more likely to be―buried‖ by its latent competitors than its current ones.Companies can identify their competitors from the industrypoint of view.• Assessing Competitors• Determining Competitors’ Objective• Identifying Competitors’ Strategies: A strategic group is a groupof firms in an industry following the same or a similar strategy in agiven target market.• Assessing Competitors’ Strengths and Weaknesses• Estimating Competitors’ Reactions
• Identifies the vital types of competitive information and thebest sources of this information• Continuously collects information from the field and frompublished data;• Checks the information for validity and reliability, interprets it, andorganizes it in an appropriate way;• Sends key information to relevant decision makers and respondsto inquiries from managers about competitors.• Smaller companies that cannot afford to set upformal competitive intelligence offices can assignspecific executives to watch specific competitors.
• Approaches to Marketing Strategy: Many large firmsdevelop formal competitive marketing strategies andimplement them religiously.• Entrepreneurial marketing: Most companies are started byindividuals who live by their wits. They visualize anopportunity, construct flexible strategies on the backs ofenvelopes, and knock on every door to gain attention.• Formulated marketing: As small companies achievesuccess, they inevitably move toward more-formulated marketing.They develop formal marketing strategies and adhere to themclosely.• Entrepreneurial marketing: Many large and mature companiesget stuck in formulated marketing. These companies sometimeslose the marketing creativity and passion that they had at the start.They need to re-establish within their companies theentrepreneurial spirit and actions that made them successful in thefirst place.••
• Basic Competitive Strategies• Overall cost leadership: The company works hard toachieve the lowest production and distribution costs.• Differentiation: The company concentrates on creating ahighly differentiated product line and marketing program.• Focus: The company focuses on serving a few marketsegments well rather than going after the whole market.• Market Leader Strategies• Expanding the Total Demand: The leading firm normally gains the mostwhen the total market expands. Market leaders can expand the market bydeveloping new users, new uses, and more usage of its products.• Protecting Market Share: While trying to expand total market size, theleading firm also must protect its current business against competitors’attacks.• Expanding Market Share: profitability increases as a business gainsshare relative to competitors in its served market.
• Market Niche Strategies• Why is niching profitable?• mass marketer achieves high volume, the nicherachieves high margins.• Nichers try to find one or more market niches that aresafe and profitable.• An ideal market niche is big enough to be profitableand has growth potential.• The key idea in niching is specialization. A marketnicher can specialize along any of severalmarket, customer, product, or marketing mix lines.• Market Follower Strategies• Each follower tries to bring distinctive advantages to itstarget market.• The follower is often a major target of attack bychallengers.• A follower can gain many advantages.
• A global firm is one that, byoperating in more than onecountry, gainsmarketing, production, R&D,and financial advantagesthat are not available topurely domestic competitors.• What market position shouldwe try to establish in ourcountry, in our economicregion, and globally?• Who will our globalcompetitors be and what aretheir strategies andresources?• Where should we produce orsource our products?• What strategic alliancesshould we form with otherfirms around the world?
• Define its international marketing objectives and policies.• Decide what volume of foreign sales it wants.• Decide how many countries it wants to market.• Decide on the types of countries to enter.• Evaluate each selected country.• Possible global markets should be ranked on several factors,including:• Market size,• Market growth,• Cost of doing business,• Competitive advantage, and• Risk level
• Exporting: is the simplest way to enter a foreign market.• Joint Venturing:• Licensing• Contract manufacturing• Management contracting, and• Joint ownership.• DECIDING ON THE GLOBAL MARKETING PROGRAM• Standardized global- marketing is using largely the same marketingstrategy approaches and marketing mix worldwide.• Adapted global marketing- is adjusting the marketing strategy andmix elements to each target market, bearing more costs but hoping fora larger market share and return.• Product• Price• Promotion• Distribution channel• Communication adaptation
• Sustainable marketing calls for meeting the presentneeds of consumers and businesses while also preservingor enhancing the ability of future generations to meet theirneeds.• Whereas the societal marketing concept considers thefuture welfare of consumers and the strategic planningconcept considers future company needs, the sustainablemarketing concept considers both.• Sustainable marketing calls for socially andenvironmentally responsible actions that meet both theimmediate and future needs of customers and thecompany.
• Marketing’s Impact on Individual Consumers: Consumeradvocates, government agencies, and other critics have accusedmarketing of harming consumers through high prices, deceptivepractices, high-pressure selling, shoddy or unsafe products,planned obsolescence, and poor service to disadvantagedconsumers.• Marketing’s Impact on Society as a Whole: Critics charge themarketing system with creating cultural pollution, Business hasbeen accused of overselling private goods at the expense ofpublic goods. Critics have charged that the marketing systemurges too much interest in material possessions, people arejudged by what they own rather than by who they are.• Marketing’s Impact on Other Businesses Critics charge that acompany’s marketing practices can harm other companies andreduce competition.• Acquisitions of competitors,• Marketing practices that create barriers to entry, and• Unfair competitive marketing practices.
• Consumerism: it is an organized movement of citizensand government agencies to improve the rights andpower of buyers in relation to sellers.• Environmentalism: it is an organized movement ofconcerned citizens, businesses, and governmentagencies to protect and improve people’s livingenvironment.
• Sustainable Marketing Principles: The philosophy ofsustainable marketing holds that a company’s marketingshould support the best long-run performance of the marketingsystem.• Consumer-Oriented Marketing: Consumer-orientedmarketing means that the company should view andorganize its marketing activities from the consumer’s pointof view. nOnly by seeing the world through its customers’eyes can the company build lasting and profitable customerrelationships.• Customer-Value Marketing: Customer-value marketingmeans the company should put most of its resources intocustomer value-building marketing investments. Bycreating value for consumers, the company can capturevalue from consumers in return.
• Innovative Marketing: requires that the companycontinuously seek real product and marketing improvements.• Sense-of-Mission Marketing: means that the companyshould define its mission in broad social terms rather thannarrow product terms.• Societal Marketing: means an enlightened company makesmarketing decisions by considering consumers’ wants andinterests, the company’s requirements, and society’slong-run interests.
• Corporate marketing ethics policies are broad guidelines that everyone inthe organization must follow. Ethics are moral guidelines which governgood behaviour. So behaving ethically is doing what is morally right.• Behaving ethically in business is widely regarded as good businesspractice.• Advertising and promotion• Issues over truth and honesty• Issues with violence, sex and profanity• Taste and controversy• Negative advertising• Market research:• Invasion of privacy (e.g. obtaining research data without permission)• Stereotyping – drawing unfair or inappropriate conclusions• Target customers and market:• Targeting the vulnerable (e.g. children, the elderly)• Excluding potential customers from the market (e.g. discouraging demand fromundesirable market sectors or simply refusing to sell to certain customers)• Pricing• Price fixing (see below)• Price wars• Price collusion (agreeing with other competitors to set prices in a market to thedetriment of competition and consumers)
• FORD banned AD made by JWTad agencyhttp://www.firstpost.com/business/ford-mess-ford-jwt-and-wpp-have-overreacted-677371.html
• Price fixing is illegal. It is considered to be anti-competitive as well as unethical. So a business cannot:• Agree prices with its competitors (e.g. it cant agree to work from ashared minimum price list)• Share markets or limit production to raise prices (e.g. if twocontracts are put out to tender, one business cant agree that it willbid for one and let a competitor bid for the other)• Impose minimum prices on different distributors such as shops• Agree with competitors what purchase price it will offer suppliers• Cut prices below cost in order to force a smaller or weakercompetitor out of the market
• Honesty – to be forthright in dealings with customers and stakeholders. To thisend, we will:• Strive to be truthful in all situations and at all times.• Offer products of value that do what we claim in our communications.• Stand behind our products if they fail to deliver their claimed benefits.• Honour our explicit and implicit commitments and promises.• Responsibility – to accept the consequences of our marketing decisions andstrategies. To this end, we will:• Strive to serve the needs of customers.• Avoid using coercion with all stakeholders.• Acknowledge the social obligations to stakeholders that come with increased marketingand economic power.• Recognize our special commitments to vulnerable market segments such aschildren, seniors, the economically impoverished, market illiterates and others who maybe substantially disadvantaged.• Consider environmental stewardship in our decision-making.• Fairness – to balance justly the needs of the buyer with the interests of theseller. To this end, we will:• Represent products in a clear way in selling, advertising and other forms ofcommunication; this includes the avoidance of false, misleading and deceptivepromotion.• Reject manipulations and sales tactics that harm customer trust.Refuse to engage in price fixing, predatory pricing, price gouging or ―bait-and-switch‖tactics.• Avoid knowing participation in conflicts of interest.
• Respect – to acknowledge the basic human dignity of all stakeholders. Tothis end, we will:• Value individual differences and avoid stereotyping customers or depictingdemographic groups (e.g., gender, race, sexual orientation) in a negative ordehumanizing way.• Listen to the needs of customers and make all reasonable efforts to monitor andimprove their satisfaction on an on going basis.• Make every effort to understand and respectfully treatbuyers, suppliers, intermediaries and distributors from all cultures.• Acknowledge the contributions of others, such as consultants, employees and co-workers, to marketing endeavours.• Treat everyone, including our competitors, as we would wish to be treated.• Transparency – to create a spirit of openness in marketing operations. Tothis end, we will:• Strive to communicate clearly with all constituencies.• Accept constructive criticism from customers and other stakeholders.• Explain and take appropriate action regarding significant product or servicerisks, component substitutions or other foreseeable eventualities that could affectcustomers or their perception of the purchase decision.• Disclose list prices and terms of financing as well as available price deals andadjustments.• Citizenship – to fulfil the economic, legal, philanthropic and societalresponsibilities that serve stakeholders. To this end, we will:• Strive to protect the ecological environment in the execution of marketingcampaigns.• Give back to the community through volunteerism and charitable donations.Contribute to the overall betterment of marketing and its reputation.• Urge supply chain members to ensure that trade is fair for all participants, including