Research paper on competitive market strategy

Competitive market strategy is a type of strategy in which objectively assesses weakness of a product as well as its strength. Furthermore the strategy compares it to the products from direct competitors (Mullins, 2005). The action is so systematic hence it deals with setting the marketing process. The process helps in rectification and improvement on the weakness and strength. Competitive advantage refers to a positive impact over competitors in the industry; it is gained through offering creator value to customer (Linden, 1990). These types of strategies include nicher, challenger, follower and leader. Each of these strategies employs different tactics and game theories to achieve the intended goals.

Frontal attack in marketing refers to an assault that is direct. Usually deals with marshalling finances and resources into the market. All sectors of the company work towards assault from production level to marketing. Rigorous adverts are carried out so as to market new product (Linden, 1990). All these process of advertising and making the new product known is very expensive and lots of resources will go to a loss. In addition they are in most cases unsuccessful this is because of unawareness of customers on the new product. When defenders re-deploy resources, the advantage of the attackers will automatically be losed. Infact in some incidences a larger attacker can be hold-off by a dedicated defender (Paley, 2005). The advantage of the strategy is that the markets are unexplored. The strategy is very convenient when; equity brand is low, products are differentiated poorly, the loyalty of customers is low, attackers in the market field have resources which are relatively stronger and relatively homogeneous markets.

Market follower is a strategy in which a firm is very comfortable following the leaders in an established market place and never challenges them. They only take advantage of the opportunities that are created hence they spend less on investment marketing. Advantages of these include getting clarification on the uncertainty of demand (Mullins, 2005). Secondly they benefit on the knowledge of new technologies and the needs of customers. furthermore they free-ride on the investments of pioneer. They enjoy well established infrastructure as well as distribution channels. In most cases the follower is in a good position to capitalize on resources which follower did not match.

Market niche refers to a group of businesses and consumers in which one of them have specific want. For example if an individual decide to market his product. The market niche is the people who have complete item in question, and earn income from it. Furthermore this strategy allows the segmentation of markets (Paley, 2005). It asserts on neutralization of barriers by ensuring that the field of market is reduced and to be in the defensive or offensive in very small market segments. The strategy builds confidence in one market that is of specialization. In the same strategy we realize that there will be a reduction in the cost of marketing. In this scenario markets will be very powerful and simplified this is because the only thing required is differentiation that will be effective in only one market (Mullins, 2005). The comparison that arises between current and earlier clients puts clients at the top. The niche is always accepted by many clients to be the preferred provider. The challenge is that, in case of new competitors in market and designs it will limit the marketplace size. Another disadvantage of this strategy is that there is a possibility of missing other good opportunities because of putting much focus on specific industry. The skills used is the same hence it becomes too specialized.

References

Mullins, J. (2005). Marketing Management: A Strategic, Decision-Making Approach. New York: McGraw-Hill.
Paley, N. (2005). The Manager’s Guide to Competitive Marketing Strategies. India: Replika Press.
Linden, B. (1990). Competitive Marketing Strategy: Developing, Maintaining and Defending Competitive Position. California: Wiley.