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.