Analysis of Competition

Analysis of Competition

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时间:2019-07-31

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1、AnalysisofCompetition1AnalysisofCompetitionWeallunderstandthebasicideaofcompetitioninbusiness.Twoormoreorganizationssimultaneouslyattempttosecurethesameresources.Inmarketing,wetypicallyseethisasacompetitionforcustomersandtheirmoney,thoughcompetitioniscertainlynotlimitedtocustomers.Asno

2、tedearlierinourdiscussionofcompetitiveadvantage,marketerscompeteforanykindofresource.However,inthesenotes,wewilllimitthediscussiontocompetitionforcustomers.Youshouldbearinmindacoupleofrelatedpointstocompetition.First,youdonotnecessarilycompetewithfirmswhocompetewithyou.Thatis,justbecau

3、seonecompanyhasidentifiedmeasacompetitordoesnotmeanIsimilarlydesignatethatcompany.Forquitesometime,TacoBellhasencouragedcustomersto“thinkoutsidethebun”orto“livemas,”bothreferencestobreakingawayfromthedominanceofsandwichesinfastfood.I’mcertainthattheiraggressivecampaigndidn’tgounnoticed

4、byMcDonalds.However,McDonaldsneverresponded.Thisleadstothesecondpoint.Justbecauseafirmhasdesignatedyouastheircompetitiondoesnotmeanthatyouhavetorespond.IfMcDonaldsfeltthatTacoBell’scampaignwashurtingtheirbusiness,theywouldcertainlyrespondinsomeway.However,sometimesthebestresponseistoju

5、stkeepdoingwhatyou’redoing.THENATUREOFCOMPETITIONINMARKETINGOffenseversusDefenseFormarketers,competitiontakesontwodimensions.Oneisdefendingcurrentcustomersfromrivalfirms.Asnotedabove,manyfirmsdonotresponddirectlyorimmediatelywhenrivalstrytolurecustomersaway,aswasthecasewithMcDonaldsand

6、TacoBell.Othertimes,firmsdorespond.AgoodexamplecameacoupleofyearsagowhenMicrosoftlaunchedthe“I’maPC”campaigntocounterthefamousseriesofcommercialsfromApplethatportrayedMacusersasyoung,attractive,andhipwhileWindowsuserswereshownasold,stuffyandbumbling.Keepingcurrentcustomersisparticularl

7、yimportantbecausecurrentcustomerspaythebillsnow.Moreover,currentcustomersaretypicallyfarmoreprofitablethangettingnewcustomersbecauseservingcurrentcustomersisfarlessexpensive.Moreover,loyalcurrentcustomersfrequentlymakeupadisproportionatelylargepercentageofsales(rememberthe“icebergpri

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