8 Competitive Strategy Problems and Opportunities SegmentationIdentify subgroups in the market that act the sameDevelop profiles of the segmentsTargetingDetermine segment attractivenessConsider “fit” with products and its benefitsSelect segment to targetPositioningDevelop marketing mix to appeal to each target segment
9 Competitive Strategy Evaluate Alternatives Does the alternative support your performance objectives?e.g. Build market share, dominate new segments, increase profits, increase distribution in a particular channelDevelop marketing mix for the alternativeProduct decisions Sales forceChannels of Distribution AdvertisingPricing PromotionsCan the alternative be implemented within your budget constraints?
10 Competitive Strategy Evaluate Alternatives Competitive ResponseWhat should they be expected to do in response to our alternatives?MatchCut priceExploit their strengthsBe mindful of competitor’s capabilities and…Pick the battleground, if you can
11 Competitive Strategy MONITOR RESULTS Financial and market performancePerformance is driven by the ability to fulfill customer needs and wants, relative to the competition
12 Competitive Strategy MONITOR RESULTS Try to learn consumer responseby measuring the outcome variablesHelps in determining resource allocation
13 Competitive Strategy MONITOR RESULTS The longer you go, the more you knowSignal vs. noiseDon’t “fight the last war”Things may change!
14 Competitive Strategy ISSUES New product development – a long term keyMatch the marketing mix to the target customerDon’t forget about price sensitivityTo stay ahead, you must continue to get better