1. UNIT : 04 CHAPTER: 18: Creating Competitive Advantage

2. Identifying Competitors
Competitor 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.
Identifying Competitors
Identifying the company’s competitors
Assessing competitors objectives, strategies, strengths and weaknesses, and reaction patterns
Selecting which competitors to attack or avoid

3. Assessing Competitors
Determining Competitors’ Objectives
Identifying Competitors’ Strategies
Assessing Competitors’ Strengths and Weaknesses
Selecting Competitors to Attack and Avoid
Strong or Weak Competitors
Close or Distant Competitors
Good or Bad Competitors

4. Finding Uncontested Market Spaces
Designing a Competitive Intelligence System
Competitive Strategies
Approaches to Marketing Strategy
Entrepreneurial marketing
Formulated marketing
Intrepreneurial marketing
Basic Competitive Strategies
Overall cost leadership
Differentiation:
Focus
Michael Treacy and Fred Wiersema suggested:
Operational excellence
Customer intimacy
Product leadership

5. Market Leader Strategies Market Nicher Strategies
Competitive Positions
Strategies for Market Leaders, Challengers, Followers, and Nichers
Market leader
Market challengers
Market followers
Market nichers
40%
30%
20%
10%
Market Leader Strategies
Market Challenger
Strategies
Market Follower
Market Nicher Strategies
Expand total market
Full frontal attack
Follow closely
By customer, market, quality-price, service
Protect market share
Indirect attack
Follow at a distance
Multiple niching
Expand market share

6. Market Leader Strategies
Expanding Total Demand
Protecting Market Share
Expanding Market Share
Market Challenger Strategies
The challenger can attack the market leader, a high-risk but potentially high-gain strategy. Its goal might be to take over market leadership.
Or the challenger’s objective may simply be to wrest more market share.
Market Follower Strategies
Prefer to follow rather than challenge the market leader.
Market Nicher Strategies

7. Balancing Customer and Competitor Orientations
Competitor-centered company
Customer-centered company
Market-centered company

8. Chapter: 19: The Global Marketplace
Global Marketing Today
Global firm
A 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.

9. Looking at the Global Marketing Environment
The International Trade System 
The World Trade Organization and GATT
Regional Free Trade Zones
Economic Environment
Subsistence economies: In a subsistence economy, the vast majority of people engage in simple agriculture.
Raw material exporting economies: These economies are rich in one or more natural resources but poor in other ways.
Emerging economies (industrializing economies): In an emerging economy, fast growth in manufacturing results in rapid overall economic growth.
Industrial economies: Industrial economies are major exporters of manufactured goods, services, and investment funds.

10. Political-Legal Environment
Cultural Environment
The Impact of Culture on Marketing Strategy
The Impact of Marketing Strategy on Cultures
Deciding Whether to Go Global
Deciding Which Markets to Enter

11. Demographic Characteristics
Education
Population size and growth
Population age composition
Geographic Characteristics
Climate
Country size
Population density-urban, rural
Transportation structure and market accessibility

12. Economic factors
GDP size and growth
Income distribution
Industrial infrastructure
Natural resources
Financial and human resources
Sociocultural Factors
Consumer lifestyles, beliefs, and values
Business norms and approaches
Cultural and social norms
Languages
Political and Legal Factors
National priorities
Political stability
Government attitudes towards global trade
Government bureaucracy
Monetary and trade regulations

13. Market Entry Strategies

14. Deciding How to Enter the Market
Exporting
Joint venturing:
Entering foreign markets by joining with foreign companies to produce or market a product or service.
Licensing
Contract Manufacturing
A Joint venture in which a company contract with manufacturers in a foreign market to produce the product or provide its service.
Management contracting:
A joint venture in which the domestic firm supplies the management know-how to a foreign company that supplies the capital; the domestic firm exports management services rather than products.
Joint ownership:
A joint venture in which a company joins investors in a foreign market to create a local business in which the company shares joint ownership and control.
Direct investment
Entering a foreign market by developing foreign-based assembly or manufacturing facilities.

15. Deciding on the Global Marketing Program
Standardized global marketing
An international marketing strategy that basically uses the same marketing strategy and mix in all of the company’s international markets.
Adapted global marketing
An international marketing strategy that adjusts the marketing strategy and mix elements to each international target market, bearing more costs but hoping for a larger market share and return.
Product
Straight product extension: Marketing a product in a foreign market without any change.
Product adaptation: Adapting a product to meet local conditions or wants in foreign markets
Product invention: Creating new products or services for foreign markets.

16. Five Global Product and Communications Strategies

17. Promotion
Communication adaptation:
A global communication strategy of fully adapting advertising messages to local markets.
Price
Distribution Channels
An international company must take a whole-channel view of the problem of distributing products to final consumers.

18. Whole-Channel Concept for International Marketing
Deciding on the Global Marketing Organization

19. Chapter: 20: Sustainable Marketing: Social Responsibility and Ethics
Socially and environmentally responsible marketing that meets the present needs of consumers and businesses while also preserving or enhancing the ability of future generations to meet their needs.

20. Social Criticisms of Marketing
Marketing’s Impact on Individual Consumers
High Prices
High Costs of Distribution:
High Advertising and Promotion Costs
Excessive Markups
Deceptive Practices
High-Pressure Selling
Shoddy, Harmful, or Unsafe Products
Planned Obsolescence
Poor Service to Disadvantaged Consumers
Underserved consumers: Because of the lack of supermarkets in low-income areas, many disadvantaged consumers find themselves in “food deserts,” with little or no access to healthy, affordable fresh foods.

21. Marketing’s Impact on Society as a Whole
False Wants and Too Much Materialism
Too Few Social Goods
Cultural Pollution Underserved consumers: Because of the lack of supermarkets in low-income areas, many disadvantaged consumers find themselves in “food deserts,” with little or no access to healthy, affordable fresh foods.
Cultural Pollution

22. Marketers answer the charges of “commercial noise” with these arguments:
First, they hope that their ads primarily reach the target audience. But because of mass-communication channels, some ads are bound to reach people who have no interest in the product and are therefore bored or annoyed. People who buy magazines addressed to their interests—such as Vogue or Fortune —rarely complain about the ads because the magazines advertise products of interest.
Second, ads make much of television and radio free to users and keep down the costs of magazines and newspapers. Many people think commercials are a small price to pay for these benefits. Consumers find many television commercials entertaining and seek them out; for example, ad viewer ship during the Super Bowl usually equals or exceeds game viewership.
Finally, today’s consumers have alternatives. For example, they can zip or zap TV commercials on recorded programs or avoid them altogether on many paid cable or satellite channels. Thus, to hold consumer attention, advertisers are making their ads more entertaining and informative.

23. Marketing’s Impact on Other Businesses
Consumer Actions to Promote Sustainable Marketing
Consumerism
• The right to introduce any product in any size and style, provided it is not hazardous to personal health or safety, or, if it is, to include proper warnings and controls
• The right to charge any price for the product, provided no discrimination exists among similar kinds of buyers
• The right to spend any amount to promote the product, provided it is not defined as unfair competition
• The right to use any product message, provided it is not misleading or dishonest in content or execution
• The right to use buying incentive programs, provided they are not unfair or misleading

24. Traditional buyers’ rights include the following:
The right not to buy a product that is offered for sale
The right to expect the product to be safe
The right to expect the product to perform as claimed
Consumer advocates call for the following additional consumer rights:
The right to be well informed about important aspects of the product
The right to be protected against questionable products and marketing practices
The right to influence products and marketing practices in ways that will improve “quality of life”
The right to consume now in a way that will preserve the world for future generations of consumers

25. Environmentalism: An organized movement of concerned citizens and government agencies to protect and improve people’s current and future living environment.
Environmental sustainability: A management approach that involves developing strategies that both sustain the environment and produce profits for the company

26. The Environmental Sustainability Portfolio

27. Major Marketing Decision Areas That May Be Called into Question under the Law
Public Actions to Regulate Marketing
Business Actions toward Sustainable Marketing
Sustainable Marketing Principles
Consumer-oriented marketing: A principle of sustainable marketing that holds a company should view and organize its marketing activities from the consumer’s point of view.
Customer-value marketing: A principle of sustainable marketing that holds a company should put most of its resources into customer-value-building marketing investments.
Innovative marketing: A principle of sustainable marketing that requires a company seek real product and marketing improvements.
Sense-of-mission marketing: A principle of sustainable marketing that holds a company should define its mission in broad social terms rather than narrow product terms.
Societal marketing: A principle of sustainable marketing that holds a company should make marketing decisions by considering consumers’ wants the company’s requirements, consumers’ long-run interests, and society’s long-run interests.

28. FIGURE | 20.4: Societal Classification of Products
Deficient products: Products that have neither immediate appeal nor long-run benefits.
Pleasing products: Products that give high immediate satisfaction but may hurt consumers in the long run.
Salutary products: Products that have low appeal but may benefit consumers in the long run.
Desirable products: Products that give both high immediate satisfaction and high long-run benefits.
Marketing Ethics
The Sustainable Company