Defining the Competitive Set

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• Defining the Competitive Set
• Jan 20
• BUSI 567
• Spring 2009

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Bases of Competition

• Customer-oriented
• Who are they competition for same budget
• When do they use it?
• Why do they use it- What benefits are sought?
• Marketing-oriented Advertising and Promotion
• Theme/copy strategy
• Media
• Distribution
• Price

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Bases of Competition cont.

• Resource-oriented
• Raw materials
• Employees (e.g., Google and Microsoft)
• Financial resources (start-ups in various
  industries)
• Geographic

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Levels of Competition
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Levels of Competition Implications for Product
Strategy
Competitive Level
Product Management Task
Product Form
Convince Customers that the Brand is Better than
Others
Convince Customers that the Product Form is Best
in the Category
Product Category
Generic
Convince Customers that the Product Category is
the Best Way to Satisfy Needs
Budget
Convince Customers that the Generic Benefits are
the Most Appropriate Way to Spend their Money
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Competition
Transportation
Lifestyle Transportation
Sports cars
Safe, lifestyle
motorcycles boats
planes
buses
trains
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PDA Competition
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Managerial Judgment of Competition
Product/Services
Markets
Same
Different
A
B
Same
C
D
Different
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50
20
Verizon
Sprint
40
30
70
60
Cingular
30
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Brand-Switching Matrix
2008
2006
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Defining Competition with Brand Choice Data
All brands
Regional
National
Regular
Diet
Family brand 1
Family brand 2
Cola
Non-Cola
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Defining Competition with Perceptual Mapping

• Moist

• Needs refrigeration

As a formal dessert
Custard mix
Bakery cake
Pudding mix

• Tapioca pudding mix

Homemade cake

• Homemade pie

Local mix

• Layer cake mix

Takes a long time to prepare

• Jell-O

Dzer ta

• Cheese cake mix

Bundt cake mix

• Frozen pie

Chocolate torte mix

• Canned pudding

• Frozen cake

Boston crème pie mix Light Style cake mix

• Stirn Frost cake mix

• Individual pie

Coffee cake mix

• Quick bread mix

Snackin Cake mix

• Hostess cupcakes

Date bar mix
Brownie mix
Homemade cookies
Cookie mix

• Oatmeal cookies

• Pepperidge Farm cookies

Bakery cookies
Pillsbury cookie dough
Good for a coffee break

• Between meal snack

• Easy to carry with me

In my school work lunch
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Methods Versus Competition Levels and
Information Required
14
Enterprise Competition in Financial Services