Week 2 Notes
Week 2 Notes BADM 3401
Popular in Basic Marketing Management
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This 4 page Class Notes was uploaded by Camille Duarte on Friday September 11, 2015. The Class Notes belongs to BADM 3401 at George Washington University taught by Sung Ham in Summer 2015. Since its upload, it has received 32 views. For similar materials see Basic Marketing Management in Business Administration at George Washington University.
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Date Created: 09/11/15
BADM 3401 98 09082015 Identifying Competitors Firms offering similar products or services to the same customers at similar prices 0 All rms with the same product or class of products 0 All rms making products that supply the same service 0 All rms competing for the same consumer dollar Competitor Analysis 0 Assessing competitors 0 0 0 0 O 0 0 0 0 Determining competitors objectives Current pro ts market share growth technological leadership service leadership Identifying competitor s strategies Strategic group uses the same strategy and offers strongest competition Understand how each rm delivers value to its customers Product quality features and mix customer services pricing distribution coverage sales force strategy advertising and sales promotion strategy RampD manufacturing purchasing nancial and other strategies Assessing competitors strengths and weaknesses Benchmarking comparing your rm to leading rms Estimating competitors reactions 0 Selecting Competitors to Attack and Avoid 0 0 0 Strong versus weak Weak competitors require fewer resources and less time but little to gain Strong competitors help sharpen abilities and succeeding against them often provides greater returns but high risk Close versus distant Good versus bad Good competitors play by the rules Bad competitors break the rules by buying market share rather than earning it taking large risks and playing by their own rules 0 Finding Uncontested Market Spaces Blue Ocean Strategy Basic Competitive Strategies Overall cost leadership strategy company achieves the lowest production and distribution costs and allows it to lower its prices and gain market share Differentiation strategy company concentrates on creating a highly differentiated product line and marketing program so it comes across as an industry class leader Focus strategy company focuses its effort on serving few market segments well rather than going after the whole market Middle of the road strategy usually the worst do everything but nothing well Competitive Positions and Strategies Market Leader the rm with the largest market share and leads the market price changes product innovations distribution coverage and promotion spending Market challenges rms ghting to increase market share Market followers runnerup rms that want to hold onto their market share Market nichers rms that serve small market segments not being pursued by other rms Market Leader Strategies Expand total demand by developing 0 New users 0 New uses 0 More usage of its products Protect current market by 0 Fixing or preventing weaknesses that provide opportunities to competitors Ful ll its value promise Maintain consistent prices that provide value Keep strong customer relationships Con nuousinnova on Expand market share by 0 Increasing pro tability with increased market share in served markets 0 Producing highquality products 0000 0 Creating good service experiences 0 Building close relationships Challenger and Follower Strategies 0 Market Challenger Strategy 0 Challenge the leader with an aggressive bid for more market share 0 Second mover advantage challenger observes what has made the leader successful and improves on it 0 Market Follower Strategy 0 Play along with competitors and not rock the boat 0 Copy or improve on leaders products and programs with less investment 0 Brings distinctive advantages 0 Keep costs and prices low or quality and services high to fend off competitors 0 Market Nicher Strategies 0 Ideal market niche is big enough to be pro table with high growth potential and has little interest from competitors Balancing Customer and Competitor Orientations Companies need to continuously adapt strategies to changes in the competitive environment Competitorcentered company spends most of its time tracking competitor s moves and market shares and trying to nd ways to counter them 0 Global Marketing Today 0 Global rm 0 Operates in more than one country 0 Gains marketing production RampD and nancial advantages not available to purely domestic competitors 0 The global rm sees the world as one market 0 CocaCola only two countries where it is not legally sold North Korea and Cuba 0 International Trade System 0 Trade restrictions 0 Tariffs taxes on imports o Quotas limits on the amount of foreign imports a country will accept 0 Exchange controls limit on the amount of foreign exchange and the exchange rate against other currencies Economic Environment 0 Industrial structure Subsistence economies vast majority engage in simple agriculture consume their output and barter the rest 0 Raw material exporting economies rich in one or more natural resources but poor in others 0 Industrializing economies high manufacturing growth 0 Industrial economies major exporters of manufactured goods services and investment funds US and Japan 0 Political Legal Environment 0 Country s attitude toward international buying 0 Government bureaucracy 0 Political stability 0 Cultural environment 0 Business norms bribes 0 Cultural preferences traditions behaviors Deciding which markets to enter 0 De ne international marketing objectives and policies 0 Foreign sales volume 0 How many countries to market to 0 Types of countries to market based on attractiveness geography income and population political climate 0 Rank potential global markets on 0 Market size 0 Market growth 0 Cost of doing business 0 Competitive advantage 0 Risk level Deciding how to enter market 0 Exporting joint venture 0 Direct investment
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