What Is a Competitive Marketing Strategy?

Competitive marketing strategy refers to a marketing strategy in which the manager must consider not only the needs of customers, but also the competitive position of the company in the industry. An enterprise's marketing strategy and tactics must start from its own competitive strength position, and adjust at any time according to changes in its own comparison with competitors' strengths to match its competitive position. Due to the importance of competition in modern marketing, marketing not only includes the four factors of "product, price, promotion, and channel", but also "competition" should become the fifth largest factor in modern marketing. Competitive consciousness must be fully reflected in the company's marketing decision, marketing planning, and marketing organization. In marketing practice, effective strategies must also be adopted to compete and continuously improve the competitiveness of the enterprise.

Competitive marketing strategy

(A) in modern times

Competitive marketing strategy: In the marketing management process, managers must not only consider the needs of customers, but also consider the competitive position of the company in the industry. An enterprise's marketing strategy and tactics must start from its own competitive strength position, and adjust at any time according to changes in its own comparison with competitors' strengths to match its competitive position.

With the gradual formation and standardization, improvement and development of China's socialist market economy, and the emergence of a buyer's market, competition among sellers has intensified. Competition not only accelerates the drastic changes in consumer culture and social lifestyles, but also urges manufacturers to compete for the development of new technologies and products, create new types of competitive "weapons", and constantly change competition strategies, making product prices, marketing and other competitive methods increasingly abundant. Under such conditions, it is not enough for an enterprise to know only customers. It is also necessary to understand competitors. It is necessary to know each other in order to gain an advantage and win in market competition.

(I) Analyze and evaluate the competitive environment and choose a target market

The research and analysis of the competitive environment is the premise and basis for companies to carry out competitive marketing activities, which is conducive to better adapting to the competitive environment, timely adjusting the business direction and production structure, scientifically formulating marketing plans, occupying the market at the least cost, and gaining the market Victory of competition. Enterprises should comprehensively analyze the competitive environment from a systematic and dynamic perspective and look for target markets.

First, by collecting a variety of public information, internal information, market intelligence, or conducting market research, etc., the target product market occupation status is investigated. The industry's average production and sales rate and profit margin of the product, and the actual consumer demand for the product And potential demand, whether there is a blank market or potential market for product sales, and whether there are monopolistic groups in the market, so as to determine competitors that will have a greater impact on the company's marketing.

Secondly, starting from the company's marketing goals, production capacity, and operation level, according to market competition, saturation, and difficulty of market entry, preliminary product positioning and market positioning.

Thirdly, the feasibility study and analysis of the target market entry are conducted, and the focus is on the expected value of the expected costs, risks, and profits of the enterprise if it enters different target markets due to competition. For example, compare the difference between the minimum cost of developing a potential market and the possible cost of participating in existing markets. According to the predicted results, choose the combination point suitable for the company from different combinations of profit and risk, so as to determine the target market for the company's competitive marketing.

(II) Investigation of major competitors

Marketing competition is a commercial war for each other's economic interests. Only by "knowing oneself and knowing oneself" can an enterprise be "a hundred wars". After the enterprise analyzes and evaluates the competitive environment, it should conduct a key investigation on the main competitors in the target market.

First, identify competitors.

Competitors of an enterprise generally refer to those companies that have similar products or services and have similar target customers and prices.

Second, figure out what each competitor is pursuing in the market and what is the motivation for each competitor's behavior.

Each competitor has a combination of goals with different priorities, such as profitability, market share, cash flow, technology leadership and service leadership. Companies need to understand what each competitor is focusing on in order to correctly estimate how they will respond to different competitive behaviors.

Third, identify competitors' strategies.

The more similar strategies companies adopt, the more fierce they will be. Therefore, participating companies must have a competitive advantage, otherwise it will be difficult to attract the same target customers.

Fourth, estimate the strengths and weaknesses of competitors.

Businesses need to estimate the strengths and weaknesses of competitors, understand the established strategies implemented by competitors, and whether they have achieved their expected goals. Analyze the advantages and disadvantages of competitors and themselves in the competitive position, especially to find competitors 'weaknesses, and pay attention to discovering competitors' errors in the market or in their own judgment. For example, some competitors think their products are top-notch, but they are not.

Fifth, judge the reaction mode of competitors.

A competitor's goals, strategies, strengths, and weaknesses determine its behavior and response to market competition, such as its response to price reductions, enhanced promotions, and the introduction of new products. In addition, each competitor has a certain business philosophy and guiding ideology. Therefore, in order to estimate the competitors 'response and possible actions, the marketing manager of an enterprise must understand the competitors' thoughts and beliefs. This is not only for a comprehensive understanding of competitors, reference to their strategic behavior and inspiration and lessons learned from it, but also for companies to change with time, take appropriate marketing countermeasures and competition skills, and properly carry out competitive marketing activities.

(3) Correctly formulate marketing plans and carry out market competition

By analyzing and evaluating the competitive environment and combining their marketing goals, the company has formulated a scientific marketing campaign plan in order to defeat the opponent in the market and achieve marketing success.

Modern market competition is centered on product marketing competition, and includes all-round competition in product quality, price, service, and corporate image. Competitiveness is the ability of an enterprise to win customers and compete for the market. The strong competitiveness of enterprises is basically manifested as "new varieties, excellent quality, low prices, business letters, and sincere service."

Adopting a competitive marketing strategy should not only conform to the actual situation of the enterprise itself, but also compare the ability level and efficiency of the marketing mix with competing companies in order to adjust or improve the mix in a timely manner. For example, an umbrella factory in Taiwan adjusted its original "high quality, higher price, distribution, and high promotion" marketing mix to a new marketing combination of "low price, ordinary quality, distribution, and low promotion" in order to penetrate the US market. Win with a low price and defeat many competitors.

(1) Strength wins. Companies with strong capital and strength can "promote new products into production as soon as possible with strong research", take the lead and become a leader in technology, ahead of other companies in terms of cost reduction, and can also use high promotions, low prices, and other means Constantly open up new areas of production and services.

(2) Post-release humanoid.

Enterprises adopting this strategy advocate "marketing with better quality products" for marketing competition, that is, bypassing product development, saving research costs and reducing investment development risks. When a new product appears on the market, it is immediately copied or improved to eliminate the original defects of the original product, improve its performance and appearance, and form its own unique, special, and new product to catch up with its competitors.

(3) Characteristic business type.

This strategy is "surviving in the cracks of the market." Due to their limited strength, it is very difficult for small and medium-sized enterprises to compete head-to-head with large enterprises. Only by strengthening their strengths and avoiding weaknesses, they can take advantage of their own marketing strategies, find weak points in the market, open up corner markets or exclusively operate a segmented market to provide the most effective Services, completely pursuing personalization in products or services, forming a significant difference from other competing companies, highlighting the company's operating characteristics, and creating a differentiated advantage.

(4) Special strategies for corporate competition.

"Water is impermanent and soldiers are impermanent." This sentence vividly illustrates that in market competition, if companies use extraordinary thinking and adopt special competition strategies based on specific situations, they can also win.