Chapter 18, key terms. Creating Competitive Advantage.

 

Competitive advantage: An advantage over competitors gained by offering consumers greater value than competitors do.

Competitor analysis: The process of identifying key competitors, assessing their objectives, strategies, strengths, and weaknesses, and reaction patterns; and selecting which competitors to attack or avoid.

Competitive marketing strategies: Strategies that strongly position the company against competitors and that give the company the strongest possible strategic advantage. 

Strategic group: A group of firms in an industry following the same or a similar strategy.

Benchmarking: The process of comparing the company's products and processes to those of competitors or leading firms in other industries to identify "best practices" and find ways to improve quality and performance. 

Market leader: The firm in an industry with the largest market share. 

Market-challenger: A runner-up firm that is fighting hard to increase its market share in an industry.

Market follower: A runner-up firm that wants to hold its share in an industry without rocking the boat.

Market nicher: A firm that serves small segments that the other firms in an industry overlook or ignore. 

Competitor-centered company: A company whose moves are mainly based on competitors' actions and reactions.

Customer-centered company: A company that focuses on customer developments in designing its marketing strategies and on delivering superior value to its target customers. 

Market-centered company: A company that pays balanced attention to both customers and competitors in designing its marketing strategies. 

Note that all the information has collected from the principles of marketing book (Asian).