MRKT 354 Study Guide - Midterm Guide: Drill, Switching Barriers, Campbell Soup Company

• School: McGill University
• Department: Marketing
• Course: MRKT 354
• Professor: George Dracopoulos

Document Summary

Chapter 6: competitive position and sources of advantage: Porter: competitive advantages lead to superior customer value. Benefits such as being able to offer lower prices or superior quality. Cost advantage: average products with below average cost. Marketing: high levels of brand awareness and brand preference and market share, along with broad product lines and highly effective distribution. Normally they have prices slightly above the average. High share + high margins = above average profits. Business"s that have average customer value need to spend more to retain customers. For example gm"s share was eroded by foreign competitors coming in with smaller and cheaper makes. It is important not to take defensive actions. Competitive advantage is about continually updating your info about clients and competition, as well as innovation. How to get one: be in an area of the market were the advantage produces things that are meaningful to clients, sustainable.