![Page 1: Principles of Marketing Lecture-40. Summary of Lecture-39](https://reader035.vdocument.in/reader035/viewer/2022062308/56649cd75503460f9499eb7d/html5/thumbnails/1.jpg)
Principles of Marketing
Lecture-40
![Page 2: Principles of Marketing Lecture-40. Summary of Lecture-39](https://reader035.vdocument.in/reader035/viewer/2022062308/56649cd75503460f9499eb7d/html5/thumbnails/2.jpg)
Summaryof
Lecture-39
![Page 3: Principles of Marketing Lecture-40. Summary of Lecture-39](https://reader035.vdocument.in/reader035/viewer/2022062308/56649cd75503460f9499eb7d/html5/thumbnails/3.jpg)
Simple Marketing Simple Marketing SystemSystem
Producer/Seller Consumer
Communication
Product/Service
Money
Feedback
![Page 4: Principles of Marketing Lecture-40. Summary of Lecture-39](https://reader035.vdocument.in/reader035/viewer/2022062308/56649cd75503460f9499eb7d/html5/thumbnails/4.jpg)
![Page 5: Principles of Marketing Lecture-40. Summary of Lecture-39](https://reader035.vdocument.in/reader035/viewer/2022062308/56649cd75503460f9499eb7d/html5/thumbnails/5.jpg)
Promotion MixAdvertising
Personal Selling
Sales Promotion
Public Relations
![Page 6: Principles of Marketing Lecture-40. Summary of Lecture-39](https://reader035.vdocument.in/reader035/viewer/2022062308/56649cd75503460f9499eb7d/html5/thumbnails/6.jpg)
Today’s Topics
![Page 7: Principles of Marketing Lecture-40. Summary of Lecture-39](https://reader035.vdocument.in/reader035/viewer/2022062308/56649cd75503460f9499eb7d/html5/thumbnails/7.jpg)
Creating Competitive Advantage
![Page 8: Principles of Marketing Lecture-40. Summary of Lecture-39](https://reader035.vdocument.in/reader035/viewer/2022062308/56649cd75503460f9499eb7d/html5/thumbnails/8.jpg)
Competitive Advantage
–An advantage over competitors gained by offering consumers greater value than competitors offer.
![Page 9: Principles of Marketing Lecture-40. Summary of Lecture-39](https://reader035.vdocument.in/reader035/viewer/2022062308/56649cd75503460f9499eb7d/html5/thumbnails/9.jpg)
Competitive Analysis
–The process of identifying key competitors; assessing their objectives, strategies, strengths and weaknesses, and reaction patterns; and selecting which competitors to attack or avoid.
![Page 10: Principles of Marketing Lecture-40. Summary of Lecture-39](https://reader035.vdocument.in/reader035/viewer/2022062308/56649cd75503460f9499eb7d/html5/thumbnails/10.jpg)
Competitor Analysis
![Page 11: Principles of Marketing Lecture-40. Summary of Lecture-39](https://reader035.vdocument.in/reader035/viewer/2022062308/56649cd75503460f9499eb7d/html5/thumbnails/11.jpg)
Strengths & Weaknesses
Reaction Patterns
![Page 12: Principles of Marketing Lecture-40. Summary of Lecture-39](https://reader035.vdocument.in/reader035/viewer/2022062308/56649cd75503460f9499eb7d/html5/thumbnails/12.jpg)
Steps Identifying Competitors
Assessing Competitors
Selecting Competitors to Attack or Avoid
![Page 13: Principles of Marketing Lecture-40. Summary of Lecture-39](https://reader035.vdocument.in/reader035/viewer/2022062308/56649cd75503460f9499eb7d/html5/thumbnails/13.jpg)
Identifying Competitors
![Page 14: Principles of Marketing Lecture-40. Summary of Lecture-39](https://reader035.vdocument.in/reader035/viewer/2022062308/56649cd75503460f9499eb7d/html5/thumbnails/14.jpg)
Firms face a wide range of competition
Be careful to avoid “competitor myopia”
Methods of identifying competitors:
–Industry point-of-view
–Market point-of-view
![Page 15: Principles of Marketing Lecture-40. Summary of Lecture-39](https://reader035.vdocument.in/reader035/viewer/2022062308/56649cd75503460f9499eb7d/html5/thumbnails/15.jpg)
Assessing Competitors
![Page 16: Principles of Marketing Lecture-40. Summary of Lecture-39](https://reader035.vdocument.in/reader035/viewer/2022062308/56649cd75503460f9499eb7d/html5/thumbnails/16.jpg)
Determining competitors’ objectives
Identifying competitors’ strategies
–Strategic groups
Assessing competitors’ strengths and weaknesses
–Benchmarking
Estimating competitors’ reactions
![Page 17: Principles of Marketing Lecture-40. Summary of Lecture-39](https://reader035.vdocument.in/reader035/viewer/2022062308/56649cd75503460f9499eb7d/html5/thumbnails/17.jpg)
Selecting Competitors to Attack or Avoid
![Page 18: Principles of Marketing Lecture-40. Summary of Lecture-39](https://reader035.vdocument.in/reader035/viewer/2022062308/56649cd75503460f9499eb7d/html5/thumbnails/18.jpg)
Strong or weak competitors
–Customer value analysis
Close or distant competitors
–Most companies compete against close competitors
“Good” or “Bad” competitors
–The existence of competitors offers several strategic benefits
![Page 19: Principles of Marketing Lecture-40. Summary of Lecture-39](https://reader035.vdocument.in/reader035/viewer/2022062308/56649cd75503460f9499eb7d/html5/thumbnails/19.jpg)
Designing Competitive
Intelligence Systems
![Page 20: Principles of Marketing Lecture-40. Summary of Lecture-39](https://reader035.vdocument.in/reader035/viewer/2022062308/56649cd75503460f9499eb7d/html5/thumbnails/20.jpg)
A Well-Designed CI System:
• Identifies types and sources of competitive information
• Continuously collects information
• Checks reliability and validity of information
• Interprets and organizes information
• Distributes information to decision makers and responds to queries
![Page 21: Principles of Marketing Lecture-40. Summary of Lecture-39](https://reader035.vdocument.in/reader035/viewer/2022062308/56649cd75503460f9499eb7d/html5/thumbnails/21.jpg)
Competitive Strategies
![Page 22: Principles of Marketing Lecture-40. Summary of Lecture-39](https://reader035.vdocument.in/reader035/viewer/2022062308/56649cd75503460f9499eb7d/html5/thumbnails/22.jpg)
Approaches to Marketing Strategy
–No single strategy is best for all companies
–Marketing strategy and practice often passes through three stages:
• Entrepreneurial marketing
• Formulated marketing
• Intrepreneurial marketing
![Page 23: Principles of Marketing Lecture-40. Summary of Lecture-39](https://reader035.vdocument.in/reader035/viewer/2022062308/56649cd75503460f9499eb7d/html5/thumbnails/23.jpg)
Basic Competitive Strategies
![Page 24: Principles of Marketing Lecture-40. Summary of Lecture-39](https://reader035.vdocument.in/reader035/viewer/2022062308/56649cd75503460f9499eb7d/html5/thumbnails/24.jpg)
Overall cost leadership
• Lowest production and distribution costs
Differentiation
• Creating a highly differentiated product line and marketing program
Focus
• Effort is focused on serving a few market segments
![Page 25: Principles of Marketing Lecture-40. Summary of Lecture-39](https://reader035.vdocument.in/reader035/viewer/2022062308/56649cd75503460f9499eb7d/html5/thumbnails/25.jpg)
–Operational excellence
• Superior value via price and convenience
–Customer intimacy
• Superior value by means of building strong relationships with buyers and satisfying needs
–Product leadership
• Superior value via product innovation
![Page 26: Principles of Marketing Lecture-40. Summary of Lecture-39](https://reader035.vdocument.in/reader035/viewer/2022062308/56649cd75503460f9499eb7d/html5/thumbnails/26.jpg)
Competitive Positions
![Page 27: Principles of Marketing Lecture-40. Summary of Lecture-39](https://reader035.vdocument.in/reader035/viewer/2022062308/56649cd75503460f9499eb7d/html5/thumbnails/27.jpg)
Market Leader
Market Challenger
Market Follower
Market Nicher
![Page 28: Principles of Marketing Lecture-40. Summary of Lecture-39](https://reader035.vdocument.in/reader035/viewer/2022062308/56649cd75503460f9499eb7d/html5/thumbnails/28.jpg)
Market Leader
![Page 29: Principles of Marketing Lecture-40. Summary of Lecture-39](https://reader035.vdocument.in/reader035/viewer/2022062308/56649cd75503460f9499eb7d/html5/thumbnails/29.jpg)
The firm with the largest market
share in an industry
![Page 30: Principles of Marketing Lecture-40. Summary of Lecture-39](https://reader035.vdocument.in/reader035/viewer/2022062308/56649cd75503460f9499eb7d/html5/thumbnails/30.jpg)
Expanding the total demand
–Finding new users
–Discovering and promoting new product uses
–Encouraging greater product usage Protecting market share
–Many considerations
–Continuous innovation Expanding market share
–Profitability rises with market share
![Page 31: Principles of Marketing Lecture-40. Summary of Lecture-39](https://reader035.vdocument.in/reader035/viewer/2022062308/56649cd75503460f9499eb7d/html5/thumbnails/31.jpg)
Market Challenger
![Page 32: Principles of Marketing Lecture-40. Summary of Lecture-39](https://reader035.vdocument.in/reader035/viewer/2022062308/56649cd75503460f9499eb7d/html5/thumbnails/32.jpg)
A runner-up firm that is fighting
hard to increase its market share in an
industry.
![Page 33: Principles of Marketing Lecture-40. Summary of Lecture-39](https://reader035.vdocument.in/reader035/viewer/2022062308/56649cd75503460f9499eb7d/html5/thumbnails/33.jpg)
Option 1: challenge the market leader
–High-risk but high-gain
–Sustainable competitive advantage over the leader is key to success
Option 2: challenge firms of the same size, smaller size or challenge regional or local firms
Full frontal vs. indirect attacks
![Page 34: Principles of Marketing Lecture-40. Summary of Lecture-39](https://reader035.vdocument.in/reader035/viewer/2022062308/56649cd75503460f9499eb7d/html5/thumbnails/34.jpg)
Market Follower
![Page 35: Principles of Marketing Lecture-40. Summary of Lecture-39](https://reader035.vdocument.in/reader035/viewer/2022062308/56649cd75503460f9499eb7d/html5/thumbnails/35.jpg)
A runner-up firm that wants to hold its
share in an industry without rocking the
boat.
![Page 36: Principles of Marketing Lecture-40. Summary of Lecture-39](https://reader035.vdocument.in/reader035/viewer/2022062308/56649cd75503460f9499eb7d/html5/thumbnails/36.jpg)
Follow the market leader
–Focus is on improving profit instead of market share
–Many advantages:
•Learn from the market leader’s experience
•Copy or improve on the leader’s offerings
•Strong profitability
![Page 37: Principles of Marketing Lecture-40. Summary of Lecture-39](https://reader035.vdocument.in/reader035/viewer/2022062308/56649cd75503460f9499eb7d/html5/thumbnails/37.jpg)
Market Nicher
![Page 38: Principles of Marketing Lecture-40. Summary of Lecture-39](https://reader035.vdocument.in/reader035/viewer/2022062308/56649cd75503460f9499eb7d/html5/thumbnails/38.jpg)
A firm that serves small segments that the other firms in the industry overlook or
ignore
![Page 39: Principles of Marketing Lecture-40. Summary of Lecture-39](https://reader035.vdocument.in/reader035/viewer/2022062308/56649cd75503460f9499eb7d/html5/thumbnails/39.jpg)
Serving market niches means targeting subsegments
Good strategy for small firms with limited resources
Offers high margins
Specialization is key
–By market, customer, product, or marketing mix lines
![Page 40: Principles of Marketing Lecture-40. Summary of Lecture-39](https://reader035.vdocument.in/reader035/viewer/2022062308/56649cd75503460f9499eb7d/html5/thumbnails/40.jpg)
Balancing Customer and Competitor
Orientations
![Page 41: Principles of Marketing Lecture-40. Summary of Lecture-39](https://reader035.vdocument.in/reader035/viewer/2022062308/56649cd75503460f9499eb7d/html5/thumbnails/41.jpg)
Companies can become so competitor centered that they lose their customer
focus.
![Page 42: Principles of Marketing Lecture-40. Summary of Lecture-39](https://reader035.vdocument.in/reader035/viewer/2022062308/56649cd75503460f9499eb7d/html5/thumbnails/42.jpg)
Types of companies
![Page 43: Principles of Marketing Lecture-40. Summary of Lecture-39](https://reader035.vdocument.in/reader035/viewer/2022062308/56649cd75503460f9499eb7d/html5/thumbnails/43.jpg)
Competitor-centered companies
Customer-centered companies
Market-centered companies
![Page 44: Principles of Marketing Lecture-40. Summary of Lecture-39](https://reader035.vdocument.in/reader035/viewer/2022062308/56649cd75503460f9499eb7d/html5/thumbnails/44.jpg)
What next?
![Page 45: Principles of Marketing Lecture-40. Summary of Lecture-39](https://reader035.vdocument.in/reader035/viewer/2022062308/56649cd75503460f9499eb7d/html5/thumbnails/45.jpg)
Global Village
![Page 46: Principles of Marketing Lecture-40. Summary of Lecture-39](https://reader035.vdocument.in/reader035/viewer/2022062308/56649cd75503460f9499eb7d/html5/thumbnails/46.jpg)
![Page 47: Principles of Marketing Lecture-40. Summary of Lecture-39](https://reader035.vdocument.in/reader035/viewer/2022062308/56649cd75503460f9499eb7d/html5/thumbnails/47.jpg)
Globalization
![Page 48: Principles of Marketing Lecture-40. Summary of Lecture-39](https://reader035.vdocument.in/reader035/viewer/2022062308/56649cd75503460f9499eb7d/html5/thumbnails/48.jpg)
Global Marketplace
![Page 49: Principles of Marketing Lecture-40. Summary of Lecture-39](https://reader035.vdocument.in/reader035/viewer/2022062308/56649cd75503460f9499eb7d/html5/thumbnails/49.jpg)
Global Marketing
![Page 50: Principles of Marketing Lecture-40. Summary of Lecture-39](https://reader035.vdocument.in/reader035/viewer/2022062308/56649cd75503460f9499eb7d/html5/thumbnails/50.jpg)
Reasons for Global Marketing
![Page 51: Principles of Marketing Lecture-40. Summary of Lecture-39](https://reader035.vdocument.in/reader035/viewer/2022062308/56649cd75503460f9499eb7d/html5/thumbnails/51.jpg)
Growth –Access to new markets
–Access to resources
Survival–Against competitors with lower costs (due to increased access to resources)
![Page 52: Principles of Marketing Lecture-40. Summary of Lecture-39](https://reader035.vdocument.in/reader035/viewer/2022062308/56649cd75503460f9499eb7d/html5/thumbnails/52.jpg)
Global FirmA firm that, by operating in more than one country, gains R&D, production,
marketing, and financial advantages in its costs and reputation that are not
available to purely domestic competitors.
![Page 53: Principles of Marketing Lecture-40. Summary of Lecture-39](https://reader035.vdocument.in/reader035/viewer/2022062308/56649cd75503460f9499eb7d/html5/thumbnails/53.jpg)
Global Marketing Vs. Marketing
![Page 54: Principles of Marketing Lecture-40. Summary of Lecture-39](https://reader035.vdocument.in/reader035/viewer/2022062308/56649cd75503460f9499eb7d/html5/thumbnails/54.jpg)
Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of goods, ideas, and services to create exchanges that satisfy individual and organizational goals.
Global marketing focuses on global market opportunities and threats.
![Page 55: Principles of Marketing Lecture-40. Summary of Lecture-39](https://reader035.vdocument.in/reader035/viewer/2022062308/56649cd75503460f9499eb7d/html5/thumbnails/55.jpg)
Enough for today. . .
![Page 56: Principles of Marketing Lecture-40. Summary of Lecture-39](https://reader035.vdocument.in/reader035/viewer/2022062308/56649cd75503460f9499eb7d/html5/thumbnails/56.jpg)
Summary
![Page 57: Principles of Marketing Lecture-40. Summary of Lecture-39](https://reader035.vdocument.in/reader035/viewer/2022062308/56649cd75503460f9499eb7d/html5/thumbnails/57.jpg)
Creating Competitive Advantage
![Page 58: Principles of Marketing Lecture-40. Summary of Lecture-39](https://reader035.vdocument.in/reader035/viewer/2022062308/56649cd75503460f9499eb7d/html5/thumbnails/58.jpg)
Competitor Analysis
![Page 59: Principles of Marketing Lecture-40. Summary of Lecture-39](https://reader035.vdocument.in/reader035/viewer/2022062308/56649cd75503460f9499eb7d/html5/thumbnails/59.jpg)
Steps Identifying Competitors
Assessing Competitors
Selecting Competitors to Attack or Avoid
![Page 60: Principles of Marketing Lecture-40. Summary of Lecture-39](https://reader035.vdocument.in/reader035/viewer/2022062308/56649cd75503460f9499eb7d/html5/thumbnails/60.jpg)
Competitive Strategies
![Page 61: Principles of Marketing Lecture-40. Summary of Lecture-39](https://reader035.vdocument.in/reader035/viewer/2022062308/56649cd75503460f9499eb7d/html5/thumbnails/61.jpg)
Competitive Positions
![Page 62: Principles of Marketing Lecture-40. Summary of Lecture-39](https://reader035.vdocument.in/reader035/viewer/2022062308/56649cd75503460f9499eb7d/html5/thumbnails/62.jpg)
Market Leader
Market Challenger
Market Follower
Market Nicher
![Page 63: Principles of Marketing Lecture-40. Summary of Lecture-39](https://reader035.vdocument.in/reader035/viewer/2022062308/56649cd75503460f9499eb7d/html5/thumbnails/63.jpg)
Global Marketplace
![Page 64: Principles of Marketing Lecture-40. Summary of Lecture-39](https://reader035.vdocument.in/reader035/viewer/2022062308/56649cd75503460f9499eb7d/html5/thumbnails/64.jpg)
Next….
![Page 65: Principles of Marketing Lecture-40. Summary of Lecture-39](https://reader035.vdocument.in/reader035/viewer/2022062308/56649cd75503460f9499eb7d/html5/thumbnails/65.jpg)
Global Marketing
![Page 66: Principles of Marketing Lecture-40. Summary of Lecture-39](https://reader035.vdocument.in/reader035/viewer/2022062308/56649cd75503460f9499eb7d/html5/thumbnails/66.jpg)
Principles of Marketing
Lecture-40