2. • To win in today’s marketplace, companies must become
adapt not just in managing products, but in managing
customer relationships in the face of determined
competition. Building profitable customer relationships and
gaining competitive advantage requires delivering more
value and satisfaction to target consumers than competitors
do.
• Customers see competitive advantages as customer
advantages.
• The first step is competitor analysis—
• the process of identifying, assessing, and selecting key
competitors.
• The second step is developing competitive marketing
strategies that strongly position the company against
competitors and give it the greatest possible competitive

3. • Identifying Competitors: Companies must avoid
“competitor myopia.” A company is more likely to be
―buried‖ by its latent competitors than its current ones.
Companies can identify their competitors from the industry
point of view.
• Assessing Competitors
• Determining Competitors’ Objective
• Identifying Competitors’ Strategies: A strategic group is a group
of firms in an industry following the same or a similar strategy in a
given target market.
• Assessing Competitors’ Strengths and Weaknesses
• Estimating Competitors’ Reactions

4. • Identifies the vital types of competitive information and the
best sources of this information
• Continuously collects information from the field and from
published data;
• Checks the information for validity and reliability, interprets it, and
organizes it in an appropriate way;
• Sends key information to relevant decision makers and responds
to inquiries from managers about competitors.
• Smaller companies that cannot afford to set up
formal competitive intelligence offices can assign
specific executives to watch specific competitors.

5. • Approaches to Marketing Strategy: Many large firms
develop formal competitive marketing strategies and
implement them religiously.
• Entrepreneurial marketing: Most companies are started by
individuals who live by their wits. They visualize an
opportunity, construct flexible strategies on the backs of
envelopes, and knock on every door to gain attention.
• Formulated marketing: As small companies achieve
success, they inevitably move toward more-formulated marketing.
They develop formal marketing strategies and adhere to them
closely.
• Entrepreneurial marketing: Many large and mature companies
get stuck in formulated marketing. These companies sometimes
lose the marketing creativity and passion that they had at the start.
They need to re-establish within their companies the
entrepreneurial spirit and actions that made them successful in the
first place.
•
•

6. • Basic Competitive Strategies
• Overall cost leadership: The company works hard to
achieve the lowest production and distribution costs.
• Differentiation: The company concentrates on creating a
highly differentiated product line and marketing program.
• Focus: The company focuses on serving a few market
segments well rather than going after the whole market.
• Market Leader Strategies
• Expanding the Total Demand: The leading firm normally gains the most
when the total market expands. Market leaders can expand the market by
developing new users, new uses, and more usage of its products.
• Protecting Market Share: While trying to expand total market size, the
leading firm also must protect its current business against competitors’
attacks.
• Expanding Market Share: profitability increases as a business gains
share relative to competitors in its served market.

7. • Market Niche Strategies
• Why is niching profitable?
• mass marketer achieves high volume, the nicher
achieves high margins.
• Nichers try to find one or more market niches that are
safe and profitable.
• An ideal market niche is big enough to be profitable
and has growth potential.
• The key idea in niching is specialization. A market
nicher can specialize along any of several
market, customer, product, or marketing mix lines.
• Market Follower Strategies
• Each follower tries to bring distinctive advantages to its
target market.
• The follower is often a major target of attack by
challengers.
• A follower can gain many advantages.

8. • A global firm is one that, by
operating in more than one
country, gains
marketing, production, R&D,
and financial advantages
that are not available to
purely domestic competitors.
• What market position should
we try to establish in our
country, in our economic
region, and globally?
• Who will our global
competitors be and what are
their strategies and
resources?
• Where should we produce or
source our products?
• What strategic alliances
should we form with other
firms around the world?

9. • Define its international marketing objectives and policies.
• Decide what volume of foreign sales it wants.
• Decide how many countries it wants to market.
• Decide on the types of countries to enter.
• Evaluate each selected country.
• Possible global markets should be ranked on several factors,
including:
• Market size,
• Market growth,
• Cost of doing business,
• Competitive advantage, and
• Risk level

10. • Exporting: is the simplest way to enter a foreign market.
• Joint Venturing:
• Licensing
• Contract manufacturing
• Management contracting, and
• Joint ownership.
• DECIDING ON THE GLOBAL MARKETING PROGRAM
• Standardized global- marketing is using largely the same marketing
strategy approaches and marketing mix worldwide.
• Adapted global marketing- is adjusting the marketing strategy and
mix elements to each target market, bearing more costs but hoping for
a larger market share and return.
• Product
• Price
• Promotion
• Distribution channel
• Communication adaptation

11. • Sustainable marketing calls for meeting the present
needs of consumers and businesses while also preserving
or enhancing the ability of future generations to meet their
needs.
• Whereas the societal marketing concept considers the
future welfare of consumers and the strategic planning
concept considers future company needs, the sustainable
marketing concept considers both.
• Sustainable marketing calls for socially and
environmentally responsible actions that meet both the
immediate and future needs of customers and the
company.

12. • Marketing’s Impact on Individual Consumers: Consumer
advocates, government agencies, and other critics have accused
marketing of harming consumers through high prices, deceptive
practices, high-pressure selling, shoddy or unsafe products,
planned obsolescence, and poor service to disadvantaged
consumers.
• Marketing’s Impact on Society as a Whole: Critics charge the
marketing system with creating cultural pollution, Business has
been accused of overselling private goods at the expense of
public goods. Critics have charged that the marketing system
urges too much interest in material possessions, people are
judged by what they own rather than by who they are.
• Marketing’s Impact on Other Businesses Critics charge that a
company’s marketing practices can harm other companies and
reduce competition.
• Acquisitions of competitors,
• Marketing practices that create barriers to entry, and
• Unfair competitive marketing practices.

13. • Consumerism: it is an organized movement of citizens
and government agencies to improve the rights and
power of buyers in relation to sellers.
• Environmentalism: it is an organized movement of
concerned citizens, businesses, and government
agencies to protect and improve people’s living
environment.

14. • Sustainable Marketing Principles: The philosophy of
sustainable marketing holds that a company’s marketing
should support the best long-run performance of the marketing
system.
• Consumer-Oriented Marketing: Consumer-oriented
marketing means that the company should view and
organize its marketing activities from the consumer’s point
of view. nOnly by seeing the world through its customers’
eyes can the company build lasting and profitable customer
relationships.
• Customer-Value Marketing: Customer-value marketing
means the company should put most of its resources into
customer value-building marketing investments. By
creating value for consumers, the company can capture
value from consumers in return.

15. • Innovative Marketing: requires that the company
continuously seek real product and marketing improvements.
• Sense-of-Mission Marketing: means that the company
should define its mission in broad social terms rather than
narrow product terms.
• Societal Marketing: means an enlightened company makes
marketing decisions by considering consumers’ wants and
interests, the company’s requirements, and society’s
long-run interests.

16. • Corporate marketing ethics policies are broad guidelines that everyone in
the organization must follow. Ethics are moral guidelines which govern
good behaviour. So behaving ethically is doing what is morally right.
• Behaving ethically in business is widely regarded as good business
practice.
• Advertising and promotion
• Issues over truth and honesty
• Issues with violence, sex and profanity
• Taste and controversy
• Negative advertising
• Market research:
• Invasion of privacy (e.g. obtaining research data without permission)
• Stereotyping – drawing unfair or inappropriate conclusions
• Target customers and market:
• Targeting the vulnerable (e.g. children, the elderly)
• Excluding potential customers from the market (e.g. discouraging demand from
undesirable market sectors or simply refusing to sell to certain customers)
• Pricing
• Price fixing (see below)
• Price wars
• Price collusion (agreeing with other competitors to set prices in a market to the
detriment of competition and consumers)

17. • FORD banned AD made by JWT
ad agency
http://www.firstpost.com/business/fo
rd-mess-ford-jwt-and-wpp-have-
overreacted-677371.html

18. • Price fixing is illegal. It is considered to be anti-
competitive as well as unethical. So a business cannot:
• Agree prices with its competitors (e.g. it can't agree to work from a
shared minimum price list)
• Share markets or limit production to raise prices (e.g. if two
contracts are put out to tender, one business can't agree that it will
bid for one and let a competitor bid for the other)
• Impose minimum prices on different distributors such as shops
• Agree with competitors what purchase price it will offer suppliers
• Cut prices below cost in order to force a smaller or weaker
competitor out of the market

19. • Honesty – to be forthright in dealings with customers and stakeholders. To this
end, we will:
• Strive to be truthful in all situations and at all times.
• Offer products of value that do what we claim in our communications.
• Stand behind our products if they fail to deliver their claimed benefits.
• Honour our explicit and implicit commitments and promises.
• Responsibility – to accept the consequences of our marketing decisions and
strategies. To this end, we will:
• Strive to serve the needs of customers.
• Avoid using coercion with all stakeholders.
• Acknowledge the social obligations to stakeholders that come with increased marketing
and economic power.
• Recognize our special commitments to vulnerable market segments such as
children, seniors, the economically impoverished, market illiterates and others who may
be substantially disadvantaged.
• Consider environmental stewardship in our decision-making.
• Fairness – to balance justly the needs of the buyer with the interests of the
seller. To this end, we will:
• Represent products in a clear way in selling, advertising and other forms of
communication; this includes the avoidance of false, misleading and deceptive
promotion.
• Reject manipulations and sales tactics that harm customer trust.
Refuse to engage in price fixing, predatory pricing, price gouging or ―bait-and-switch‖
tactics.
• Avoid knowing participation in conflicts of interest.

20. • Respect – to acknowledge the basic human dignity of all stakeholders. To
this end, we will:
• Value individual differences and avoid stereotyping customers or depicting
demographic groups (e.g., gender, race, sexual orientation) in a negative or
dehumanizing way.
• Listen to the needs of customers and make all reasonable efforts to monitor and
improve their satisfaction on an on going basis.
• Make every effort to understand and respectfully treat
buyers, suppliers, intermediaries and distributors from all cultures.
• Acknowledge the contributions of others, such as consultants, employees and co-
workers, to marketing endeavours.
• Treat everyone, including our competitors, as we would wish to be treated.
• Transparency – to create a spirit of openness in marketing operations. To
this end, we will:
• Strive to communicate clearly with all constituencies.
• Accept constructive criticism from customers and other stakeholders.
• Explain and take appropriate action regarding significant product or service
risks, component substitutions or other foreseeable eventualities that could affect
customers or their perception of the purchase decision.
• Disclose list prices and terms of financing as well as available price deals and
adjustments.
• Citizenship – to fulfil the economic, legal, philanthropic and societal
responsibilities that serve stakeholders. To this end, we will:
• Strive to protect the ecological environment in the execution of marketing
campaigns.
• Give back to the community through volunteerism and charitable donations.
Contribute to the overall betterment of marketing and its reputation.
• Urge supply chain members to ensure that trade is fair for all participants, including