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Budget Competition Least Direct So-called because competing brands come from same parts of consumers’ budgets. Juice Soda Tea
Defining A Firm’s Competition
“Levels” of Competition MKT 455
Marketing Strategy
Useful to view levels of competition in context of relevant benefits. Product Form Competition Generic Competition Budget Competition gourmet taste aroma stimulation sophistication personal connection friendship hedonism personal connection friendship good taste budget friendly stimulation good taste good health reassurance
Defining A Firm’s Competition
“Levels” of Competition MKT 455
Marketing Strategy
Defining A Firm’s Competition
Methods for Defining Competition Judgmental Methods Judgmental Methods rely on a minimum
Some informal data gathering may be incorporated into judgments. Salesforce opinions Polls of managers or executives MKT 455
Marketing Strategy
Defining A Firm’s Competition
Methods for Defining Competition Judgmental Methods Behavioral Methods Use data on customer purchase or
- ther marketplace behavior.
Frequently comes from scanner or panel data. Used to measure changes in consumer consideration sets. Substitution Index
Fik =
nik · n..
where: nik = switch from i on first occasion to k on second occasion = total number of consumers n..
- ni. = bought i on first occasion
n.k = bought k on second occasion One metric is called the “Substitution Index.” MKT 455
Marketing Strategy
Defining A Firm’s Competition
Methods for Defining Competition Judgmental Methods Behavioral Methods Perceptual Methods Based on customer perceptual judgments of brand similarity. Requires primary research and can utilize many approaches. One useful perceptual approach is “Perceptual Mapping.” MKT 455
Marketing Strategy
MKT 455
Marketing Strategy
Defining A Firm’s Competition
Methods for Defining Competition Judgmental Methods Behavioral Methods Perceptual Methods Based on customer perceptual judgments of brand similarity. Requires primary research and can utilize many approaches. One useful perceptual approach is “Perceptual Mapping.” More on Perceptual Mapping Measurement asks people to rate similarity of selected brands. How similar or different do you think Duffy’s Family Restaurant is to Thai Breezes Restaurant in terms of the following characteristics? Very Different Very Similar
1 2 3 4 5 service quality 1 2 3 4 5 Continue for all comparisons of all selected brands restaurants. food quality 1 2 3 4 5
