Kotler 2020, Chapter 14 - Competitive Advantage

The process of identifying, analyzing, and understanding competitors to gain a strategic advantage.

The unique value proposition that sets a company apart from its competitors and attracts customers.

A strategic approach that focuses on understanding and satisfying customer needs while simultaneously considering competitors' offerings.

A business strategy that aligns with the overall goals and objectives of an organization, focusing on achieving sustainable competitive advantage.

A situation where a company needs to adapt its product or service to meet customer demands and outsmart competitors.

The ability to understand and respond to changing market conditions and customer needs effectively.

A successful marketing approach focused on delivering value, building relationships, and creating loyal customers.

Recognizing that your customers are more than just buyers, and building relationships with them to create a sense of lasting value.

Companies competing to satisfy the same customer need or target the same customer group.

Companies competing within the same industry, offering similar products or services.

The concept that companies should consider all potential alternatives that a customer might choose to satisfy their need, regardless of industry boundaries.

The changing nature of industry boundaries and consumer preferences, making it difficult to define competition based on traditional industry classifications.

Consumers are becoming increasingly emotional and unpredictable in their purchasing behavior, making traditional marketing methods less effective.

The changing ways in which consumers use products, leading to a fragmentation of product usage and blurring of traditional market categories.

Companies respond to consumer fragmentation by offering a wider range of products and services adapted to different needs and usage patterns.

The shift towards consumer-centric pricing strategies where prices are set based on what consumers are willing to pay, rather than traditional cost-based models.

The tendency by companies to focus solely on direct competitors, neglecting indirect and emerging threats.

Companies like Marriott, Scandic, Elite, and Choice that cater to a wide range of travellers, from business executives to families.

The idea that a company might be more vulnerable to disruption from unexpected rivals, such as technological advancements, than from traditional direct competitors.

Classifying companies based on the products or services they offer, such as the oil industry, pharmaceutical industry, or the beverage industry.

Understanding the competitive landscape within a specific industry and how companies interact within it.

Companies within the same industry that directly compete for the same customers and market share.

Companies that compete for the same consumer spending but are not directly related to the target company's industry. For example, a hotel chain competing with travel agencies or amusement parks.

The blurring of boundaries between industries due to innovation, convergence, and changing consumer preferences.

Companies that leverage unorthodox marketing techniques, often characterized by limited resources, customer focus, and unconventional strategies.

A marketing approach where companies carefully craft and implement formal competitive strategies.

A marketing approach driven by innovation and creativity often employed by startups and small businesses.

Companies that break traditional marketing rules and succeed through unconventional strategies and close customer relationships.

A marketing approach where companies focus on building strong customer relationships and cultivating loyalty.

A strategy emphasizing word-of-mouth and social media to generate hype and create a buzz around a product or brand.

A marketing strategy where companies directly engage with their customers on a personal level.

A marketing approach where companies focus on understanding and meeting the specific needs of their customers.

Comparing a company's offerings and processes to competitors or industry leaders to identify best practices and improve performance.

A competitor's objectives, strategies, strengths, and weaknesses help predict their actions and reactions to a company's moves.

Competitors might react differently to a company's moves, some react swiftly, others slowly, and some only react to certain types of moves.

The goal is to identify which competitors to focus on for competition. Companies typically prioritize weaker competitors, but engaging with stronger competitors can also yield benefits like sharper abilities.

Companies need to understand the value that their target customers seek and how they rate the value of different competitors' offerings.

Competitors with different philosophies, cultures, and guiding beliefs will react differently to market situations.

Knowing how competitors react to market moves helps a company strategize its attacks or defenses.

A business strategy focused on creating a strong bond with customers by deeply understanding their unique needs and providing tailored solutions. This involves building detailed customer profiles, responding quickly to their requests, and prioritizing long-term customer loyalty.

A business strategy centered around constantly introducing groundbreaking products or services. This emphasizes innovation, speed to market, and offering the most advanced solutions, even if it means higher costs or inconveniences for the customer.

A business strategy that aims to dominate a market by achieving the largest market share. This often involves aggressive pricing, extensive advertising, and a focus on efficiency.

A business strategy where a firm aggressively challenges the market leader's position. This might involve introducing innovative products, lowering prices, or targeting specific customer segments.

A business strategy where a firm accepts a stable position in the market and avoids directly competing with the leader. This often involves imitating the leader's products or services but at a lower price.

A business strategy where a firm focuses on a specific niche market, often with specialized products or services.