Reviewing the Key Terms
- benchmarking
- The process of comparing the company's products and processes to
those of competitors or leading firms in other industries to find ways
to improve quality and performance.
- competitive advantage
- An advantage over competitors gained by offering consumers greater value than competitors offer.
- 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.
- competitor-centered company
- A company whose moves are mainly based on competitors' actions and reactions.
- competitive marketing strategies
- Strategies that strongly position the company against competitors
and that give the company the strongest possible strategic advantage.
- customer-centered company
- A company that focuses on customer developments in designing its
marketing strategies and on delivering superior value to its target
customers.
- customer value analysis
- Analysis conducted to determine what benefits target customers
value and how they rate the relative value of various competitors'
offers.
- market leader
- The firm with the largest market share in an industry.
- market-centered company
- A company that pays balanced attention to both customers and competitors in designing its marketing strategies.
- 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 its industry overlook or ignore.
- strategic group
- A group of firms in an industry following the same or a similar strategy.