Nov 2, 2010

Marketing: Competitive Strategy

At this present time and the next moment, the marketing strategy employed by a company must be tailored not only to target consumers only, but also on competitors who target the same consumer target market. Company before establishing and running the strategy should first analyze the Strength, Weakness, Opportunity and Treath (SWOT) that view and analyze the strengths, weaknesses, opportunities, and threats of its own and is also owned by its competitors.

Competitive strategy depends on the size and position of each company in the market. Large companies are able to apply certain strategies, which clearly can not be done by small companies. But only with a large scale is not enough, because there are some strategies for large companies that can guarantee success, will tatapi there are also strategies that can harm himself. And not a thing that rarely happens that a small company with its own strategy is able to get the same profit level or even better than those obtained by large corporations.
In relation to the size of the business, it can be divided into four business groups:

1. Market Leader
    Such companies will hold a major part in the market, other companies usually follow the actions of the company in terms of price changes, new product introductions, distribution channel coverage, and intensity of promotion. The company is a focal point to the orientation of the competitors. It is a company that challenged, imitated, or shunned. Life was not easy, the market leader, except where the company does have an official campaign. The company is constantly heightens guard because their competitors are always looking for and try to exploit weaknesses, although no matter how small. Dominant companies always want to remain number one, therefore, companies like these services to develop strategies ;

  • Develop the overall market, this can be done by:  - Finding new customers by way of market breakthrough strategy, new market strategies, and geographic expansion strategy, - Finding and introduces a new use of a product, - Masyarakal Convincing consumers to use more product on each occasion.
  • Protect the parts that have dominated the market. While trying to strengthen the market. Dominant firm must protect its business remained constant from attack rivals. For that to be done by the company the leader in defending his territory is the innovation (Renewal), which continuously.
  • Increasing the market. In addition to seeking new customers in new markets, companies can also increase the number of consumers in the market that have been mastered.

2. Market Challanger
    Companies that have a second or lower order again in the market can be called a runner-up. They can attack Market leader and other competitors in an intense effort win the market, this company called Market Challanger. And those who are being home to receive not shake the market, also known as Market Follower.
Some attack strategies that can be used by market challanger:

a. Setting targets straregi opponent.
    The first step should be done by the challenger to the market is setting strategic goals and choose the opponents they faced, for the company must conduct a systematic analysis of competition. Strategic objectives of most market challengers are: increased market share in the hope that will result in higher profitability. Basically, the market challanger can choose one of three types of companies that can be attacked, namely: market leadership, companies as large but less successful and lack of funds, and smaller regional firms.

b. Choosing the attack strategy.
    In general there are five strategy assault that can be selected and performed market challanger:
  • Frontal Attack. This attack is done by putting all the power that the right to deal with opponents. This attack is more than the opponent's offensive strength of the weak points. In this frontal attack, the attacker rival products, advertising, price, from his opponent, so if the opponent is not strong then it will lose. Usually the use of this strategy is the market strong challanger.
  • Attacks Soar. Fundamental principle of modern attacks are concentrations of power to attack the weaknesses. Market challanger will pretend to attack the strong that opponents mobilize all forces to the part, but the real attack will be directed to miss out weaknesses. There are two strategies that can be done by market challanger ie geographical attacks, ie attacks directed at the marketing areas where competitors do not handle it well. And the second is the attack by closing the market segment which has not been met by the market leader.
  • Siege attack. This attack is an attempt by opponents through the marketing area, namely by holding a massive Attack against the entire market at the same opponent and challenger companies marketing everything whatever marketed by competitors, and beyond that which is owned by a competitor, so the company's offer is not possible rejected by consumers.
  • Traffic Attack. This strategy is a strategy that at least directly, as well as distancing himself from the movement that led market competitors. There are three approaches, namely: diversification into products that are not related, geographical diversification of new outlets and create a better product.
  • Guerrilla attacks. These attacks are by companies that lack the capital to attack in various parts of the opponent with a small attack sudden and discontinuous. The aim is to disrupt the opponent's concentration. The attack can be performed with acts selectively cut prices, disrupt supply, executive plowing, intensive promotional activities and various other illegal acts.

3. Market Follower
    Such companies prefer to offer similar things, usually by mimicking the company's leading product. Each market follower always highlight its distinctive character to the target market, such as location, services, or finances. General strategy is usually done by a follower market :
  • Following close. Market follower trying to match the company a market leader in as many market segments and regions of the marketing mix.
  • Following from afar. In this strategy market follower to make some differentiation, but still follow the market leader in terms of market integration.
  • Following  selectively. Market follower followed by a few things to do near market leader, However on the other things that go with his own company.

4. Market Nicher
    Companies like this, bearing various names such as: cultivators niche markets, specialty markets, the company doorway, or a firm foothold. Nicher Market occupies a small portion of all existing markets. Such companies are trying to get unity or over the cracks a safe and profitable markets are forgotten or overlooked by large corporations. Micher market generally is a company that has a particular specialization and expertise unique in the marketplace, consumers, or product lines within the marketing mix.