MGMA01H3 Chapter 18: Chapter 18 Notes
Document Summary
Close or distant competitors: most companies will compete with close competitors those that resemble them most rather than distant competitors. Reviewing objectives and key terms: discuss the need to understand competitors as well as customers through competitor analysis. To prepare an effective marketing strategy, a company must consider its competitors as well as its customers. Building profitable customer relationships requires satisfying target consumer needs better than competitors do. A company must continuously analyze competitors and develop competitive marketing strategies that position it effectively against competitors and give it the strongest possible competitive advantage. Competitor analysis first involves identifying the company"s major competitors, using both an industry-based and a market- based analysis. The company then gathers information on competitors" objectives, strategies, strengths and weaknesses, and reaction patterns. With this information in hand, it can select competitors to attack or avoid. Competitive intelligence must be collected, interpreted, and distributed continuously.
