1. Principles and Practice of Marketing
David Jobber
Chapter 16 Competition and Marketing 1 1

2. D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill
Competitor analysis
1. Who are our competitors?
2. What are their strengths and weaknesses?
3. What are their strategic objectives and thrust?
4. What are their strategies?
5. What are their response patterns?
Competitor analysis seeks to answer five key questions
D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 2

3. D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill
Competitor analysis
1. Who are our competitors?
Identify competitors
Product form
Product substitutes
Generics
New entries
2. What are their strengths and weaknesses?
3. What are their strategic objectives and thrust?
4. What are their strategies?
5. What are their response patterns?
D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 3

4. D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill
Competitor analysis
1. Who are our competitors?
Audit competitor capabilities
2. What are their strengths and weaknesses?
Financial
Technical
Managerial
Marketing assets
Strengths and weaknesses
3. What are their strategic objectives and thrust?
4. What are their strategies?
5. What are their response patterns?
D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 4

5. D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill
Competitor analysis
1. Who are our competitors?
2. What are their strengths and weaknesses?
Infer competitor objectives and strategic thrust
Build
Hold
Harvest
Growth directions
3. What are their strategic objectives and thrust?
4. What are their strategies?
5. What are their response patterns?
D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 5

6. D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill
Competitor analysis
1. Who are our competitors?
2. What are their strengths and weaknesses?
Deduce competitor strategies
3. What are their strategic objectives and thrust?
Target segments
Differential advantages
Competitive scope
Cost leadership
4. What are their strategies?
5. What are their response patterns?
D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 6

7. D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill
Competitor analysis
1. Who are our competitors?
2. What are their strengths and weaknesses?
3. What are their strategic objectives and thrust?
Estimate competitor response patterns
Retaliatory
Complacent
Hemmed-in
Selective
Unpredictable
4. What are their strategies?
5. What are their response patterns?
D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 7

8. Competitor identification
Product form competitors
Technically similar products
Product substitutes
Technically dissimilar products
Generic competitors
Products that solve the problem or eliminate it in a dissimilar way
Potential new entrants
With technically similar products
With technically dissimilar products
The competitive arena
D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 8

9. Company capability profiles
Key success factor
Our company
Competitor 1
Competitor 2
Innovativeness
Financial strength
Technical assistance to customers
Product quality
Well-qualified workforce
Access to international distribution channels
D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 9

10. Creating a differential advantage
Product
Promotion
Distribution
Price
D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 10

11. Cost drivers Costs Economies of scale Learning Capacity utilization
Linkages
Costs
Interrelationships
Integration
Timing
Policy decisions
Location
Institutional factors
D Jobber, Principles and Practice of Marketing, © 1998 McGraw-Hill 11