Market-leader strategies :
• Expanding the total market : new users, new uses, more usage… • Expanding market share : win customers, buy competitors, win loyalty… • Improving productivity : reduce costs, change in product mix, add value… • Defending its position : continuous innovation…
Market-challenger strategies :
• • Defining the strategic objective and thecompetitor. Choosing an attack strategy : - Frontal, flanking, - Encirclement attack - Bypass attack - Guerilla attack
Market-follower strategies :
• Cloner • Imitator • Adapter
Two main roads to Competitive Advantage
• Being competitive on the basis of price by virtue of being a low cost producer and marketer. • Being competitive on the basis of features, functions, performance, service,and support
The importance of Effective Innovation
Either way, it is effective innovation that is the key to gaining a competitive advantage, whether the innovation is : • In the product • The way it is produced • The way it is marketed or • The way it is serviced and supported Without effective innovation, vendors will not be able to survive in the marketplace.
IDC 04/94INNOVATION is a MUST, but an INNOVATION must be MARKETED.
Which differences to promote :
• • • • • • • Important Distinctive Superior Communicable Pre-emptive Affordable Profitable
• • The process of trading in a market how to promote your product to find new prospects and draw them in. . Space advertising (magazine, internet) Direct advertising (postal, email) TelemarketingPersonal sales (sales people, reps) Public relations (press releases, speeches) Media advertising (television, radio) Billboard (highway signs, hallway posters, blimps) Road Show (tradeshow, craft show) Incentives (tee-shirts, awards, vacations, contests) Discounts (sales, coupons) • understand who your prospects are and why they buy. Review their budget and risk level. Then decide on appropriatepromotional avenues that make sense. Be creative on ways to apply promotional programs. It’s usually a mistake to do what many do.
• • • • Advertising Promotions Personal selling Publicity
• When you recognize a product by its logo, a music…. • Nike, Lacoste, Mercedes…
• Goal is : to meet and satisfycustomer needs • To achieve it : build customer relationships, not just products. • Define and deliver customer value and satisfaction. • Retain customers
• Consumer buys from the firm that they believe offers the highest customer delivered value • Total customer value (product, service, personnel and image
values) Minus Total customer cost (monetary, time, energy and psychic cost)Equals Customer delivered value (“profit” to customer).
Track customer satisfaction
• • • • Complaint & suggestion systems Customer satisfaction surveys Ghost shopping Lost customer analysis
Deliver customer value & satisfaction
• Value chain
Human resource management Technology development Procurement Inbound operations logistics Outboundlogistics Marketing & Sales
Total quality management programs
Loyalty vs issues :
• Problems not solved • No problem • Problems solved ---+ ++
Satisfaction vs loyalty :
Status • • • Unsatisfied Satisfied Delighted Loyalty 17% 45% 90+%
Customer relationship :
• • • • • Basic Reactive Accountable Proactive Partnership
To keepcustomers : deliver quality!
• Customers must be delighted to be loyal • Develop CRM systems (customer relationship management) : IT-based applications that integrate a company’s information about customers with the knowledge of how to use that information.
• A customer found a piece of paper in a can of “Danish lean ham” • Returned it to the store...