Competitive Strategy
Transcript of Competitive Strategy
PharmaSimPharmaSimCOMPETITIVE STRATEGYCOMPETITIVE STRATEGY
Advanced Marketing Advanced Marketing ManagementManagement
Marketing 6202Marketing 6202
Competitive StrategyCompetitive Strategy
What is Strategy?What is Strategy?
Multi Functional activities that Multi Functional activities that support corporate goals by support corporate goals by delivering superior customer delivering superior customer valuevalue
What is Customer Value?What is Customer Value?
Customer Value = Benefits - Costs
Competitive StrategyCompetitive StrategyApproachesApproaches
DeliberateDeliberateRealized actions match intended Realized actions match intended coursecourse
EmergentEmergentStrategy is identified from Strategy is identified from
patterns or patterns or consistencies in past consistencies in past behaviorbehavior
Intended course may be changedIntended course may be changed
Competitive StrategyCompetitive StrategySituation AnalysisSituation Analysis
Demand-How/why do Demand-How/why do consumers buy?consumers buy?Population and segmentPopulation and segmentChannelsChannelsUsage ratesUsage rates
EnvironmentEnvironmentHealth issues and Health issues and symptomssymptomsEconomic-e.g. inflationEconomic-e.g. inflation
Information Sources
SURVEY – Decision Criteria
SURVEY – Tradeoffs
SURVEY – Brand Awareness
SURVEY – Purchase Intentions
SURVEY – Brand Perceptions
MARKET – Shopping Habits
MARKET – Share of Channel Sales
MARKET – Symptoms Reported
Competitive StrategyCompetitive StrategySituation AnalysisSituation Analysis
PerformancePerformanceMarket shareMarket shareCosts, resource allocationCosts, resource allocationMarginsMargins
ProductsProductsHow do consumers view How do consumers view them?them?New products?New products?
Marketing programsMarketing programsPricePricePromotionPromotionDistributionDistribution
Information Sources
MARKET – Share of Mfgr Sales
MARKET – Share of Channel Sales
SURVEY – Brands Purchased
MARKET – Brand Formulations
MARKET – Operating Statistics
MARKET – Sales Force
MARKET – Advertising
MARKET – Promotion
Competitive StrategyCompetitive StrategySituation AnalysisSituation Analysis
SWOTSWOTInternalInternal
StrengthsStrengthsWeaknessesWeaknesses
ExternalExternalOpportunitiesOpportunitiesThreatsThreats
Focus on trends – How are things Focus on trends – How are things changing?changing?
Competitive StrategyCompetitive StrategyProblems and Problems and OpportunitiesOpportunities
ProblemsProblemsFinancial performanceFinancial performanceCompetitor actionsCompetitor actionsProduct usage and Product usage and perceptionsperceptionsMarketing MixMarketing Mix
OpportunitiesOpportunitiesFragmenting marketFragmenting marketSubmarket/segment Submarket/segment growthgrowthFinancial resourcesFinancial resources
Information SourcesSURVEY – Decision Criteria
SURVEY – Tradeoffs
SURVEY – Brand Awareness
SURVEY – Purchase Intentions
SURVEY – Brand Perceptions
SURVEY – Segmented Reports
MARKET – Symptoms Reported
MARKET – Shopping Habits
MARKET – Brand Formulations
MARKET – Operating Statistics
COMPANY–Product Contributions
Competitive StrategyCompetitive StrategyProblems and Problems and OpportunitiesOpportunities
SegmentationSegmentationIdentify subgroups in the market that Identify subgroups in the market that act the sameact the sameDevelop profiles of the segmentsDevelop profiles of the segments
TargetingTargetingDetermine segment attractivenessDetermine segment attractivenessConsider “fit” with products and its Consider “fit” with products and its benefitsbenefitsSelect segment to targetSelect segment to target
PositioningPositioningDevelop marketing mix to appeal to each Develop marketing mix to appeal to each target segmenttarget segment
Competitive StrategyCompetitive StrategyEvaluate AlternativesEvaluate Alternatives
Does the alternative support your Does the alternative support your performance objectives?performance objectives?
e.g. Build market share, dominate new e.g. Build market share, dominate new segments, increase profits, increase segments, increase profits, increase distribution in a particular channeldistribution in a particular channel
Develop marketing mix for the Develop marketing mix for the alternativealternative
Product decisionsProduct decisions Sales forceSales forceChannels of DistributionChannels of Distribution AdvertisingAdvertisingPricingPricing
PromotionsPromotions
Can the alternative be implemented Can the alternative be implemented within your budget constraints?within your budget constraints?
Competitive StrategyCompetitive StrategyEvaluate AlternativesEvaluate Alternatives
Competitive ResponseCompetitive ResponseWhat should they be expected to do in What should they be expected to do in response to our alternatives?response to our alternatives?
MatchMatchCut priceCut priceExploit their strengthsExploit their strengths
Be mindful of competitor’s capabilities Be mindful of competitor’s capabilities and…and…
Pick the battleground, if you can
Competitive StrategyCompetitive StrategyMONITOR RESULTSMONITOR RESULTS
Financial and market Financial and market performanceperformance
Performance is driven by the ability to fulfill customer needs and wants, relative to the competition
Competitive StrategyCompetitive StrategyMONITOR RESULTSMONITOR RESULTS
Try to learn consumer responseTry to learn consumer response
Helps in determining resource allocation
by measuring the outcome variables
Advertising
Aw
are
ness
Competitive StrategyCompetitive StrategyMONITOR RESULTSMONITOR RESULTS
The longer you go, the more you The longer you go, the more you knowknow
Signal vs. noiseSignal vs. noise
Don’t “fight the last war”Don’t “fight the last war”
Things may change!
Competitive StrategyCompetitive StrategyISSUESISSUES
New product development – a long New product development – a long term keyterm key
Match the marketing mix to the Match the marketing mix to the target customertarget customer
Don’t forget about price sensitivityDon’t forget about price sensitivity
To stay ahead, you must continue To stay ahead, you must continue to get betterto get better
Competitive StrategyCompetitive StrategySituation AnalysisSituation Analysis
Demand-How/why do Demand-How/why do consumers buy?consumers buy?Population and segmentPopulation and segmentChannelsChannelsUsage ratesUsage rates
EnvironmentEnvironmentHealth issues and Health issues and symptomssymptomsEconomic-e.g. inflationEconomic-e.g. inflation
Information Sources
SURVEY – Decision Criteria
SURVEY – Tradeoffs
SURVEY – Brand Awareness
SURVEY – Purchase Intentions
SURVEY – Brand Perceptions
MARKET – Shopping Habits
MARKET – Share of Channel Sales
MARKET – Symptoms Reported