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Chapter 7 Objectives Explain how a company identifies its primary competitors and ascertains their strategies, objectives, strengths and weaknesses. Determine how a company designs a competitive intelligence system. Decide when a company should position itself as a market leader, challenger, follower, or nicher. Describe how a company balances a customer versus competitor orientation. Quotes to Live By... Forces Determining Segment Structural Attractiveness Competitors and Competition Sometimes a company may be unaware of all its competitors. Disintermediation is displacement of traditional intermediaries. E-commerce gains a greater percentage of consumer and industry business. Industry is a group of firms that offers a product that is a close substitute for the other. Industry Conceptof Competition Number of sellers - degree of differentiation Entry, mobility, exit barriers Cost structure Degree of vertical integration Degree of globalization Number of Sellersand Differentiation Barriers and Profitability Analyzing Competitors Analyzing Strengthsand Weaknesses Describe the following competitive positions in a target market: Reaction Patterns Competitive Intelligence System Explain what happens in each of the following steps: Setting up the system Collecting the data Evaluating and analyzing the data Disseminating information and responding How can customer value analysis help marketing managers? List three classes of competitors. Hypothetical Market Structure Strategies Defense Strategies Attack Strategies Specific Attack Strategies Price-discount Cheaper goods Prestige goods Product proliferation Product innovation Improved services Distribution innovation Manufacturing cost reduction Intensive advertising promotion Market Follower Strategies Counterfeiter Cloner Imitator Adapter Nichemanship End-user specialist Vertical-level specialist Customer-size specialist Specific-customer specialist Geographic specialist Product or product-line specialist Product-fea
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