Marketing Management 2 Miss/ Eman Elfar Section 1 Spring 2017/2018

Competitor Analysis What is the meaning of Competitor analysis? it is the process of identifying, assessing, and selecting key competitors What is the stage of Competitor analysis process? Identifying the company’s competitors. Assessing competitors’ objectives, strategies, strengths and weaknesses, and reaction patterns. Selecting which or avoid.

Frist step: Identifying Competitors Competitors can include: (what is the types of competitors) The company’s competitors my be one of the following: All firms making the same product or class of products All firms making products that supply the same service All firms competing for the same consumer dollars

Frist step: Identifying Competitors What is the meaning of Competitive advantage? It refers to an advantage over competitors gained by offering consumers greater value than competitors offer What is the meaning of Competitor myopia ? It refers to a firm focusing on what it considers to be it’s direct competitors and not being aware of indirect or a new competitors

Frist step: Identifying Competitors How do the company identify their competitors? there are two points of view company depends on identifying? Industry point of view :refers to competitors within the same industry Market point of view :refers to competitors trying to satisfy the same customer need or building relationships with the same customer group Market point of view is considered to provide a broader set of actual and potential competitors and a competitor map

Frist step: Identifying Competitors What is the competitor map ? Competitor map illustrates the steps buyers take in obtaining the product . It highlights both competitive opportunities and challenges facing the firm Center is the list of consumer activities First outer ring lists main competitors Second outer ring lists indirect competitors

Second step: Assessing Competitors In assessing competitors , marketer should focus on : Competitor’s objectives Competitor’s strategies Competitor’s strengths and weaknesses Competitor’s actions and reactions

Second step: Assessing Competitors Determining Competitor’s Objectives Competitor’s objectives include: Profitability Market share growth Cash flow Technological leadership Service leadership

Second step: Assessing Competitors Identifying Competitor’s Strategies: A strategic group is a group of firms in an industry following the same or similar strategy in a given target market Competition is most intense within a strategic group. Because of overlapping customers , competition among strategic groups lack of perceived differentiation, and expansion of one strategic group into new segments

Second step: Assessing Competitors Identifying Competitor’s Strategies: Companies need to understand the competitor’s ability to deliver value to its customers through analyzing competitors’: * Product quality * Product features * Customer service * Pricing policy * Distribution coverage * Sales force strategy * Promotion programs * Financial strategies * R&D

Second step: Assessing Competitors Assessing Competitor’s Strengths and Weaknesses : Companies gather information about competitors through : Primary data Secondary data Personal experience Word of mouth Benchmarking is the comparison of the company’s products or services to competitors or leaders in other industries to find ways to improve quality and performance

Second step: Assessing Competitors Estimating Competitor’s Reactions How do the marketing can Estimating Competitor’s Reactions? Competitor’s Reactions can be estimated through developing an understanding of a given competitor’s mentality, culture, values, and way of doing business.