Marketing Strategy and Competitive Positioning pdf ebook

Competitors’ supporting marketing mix
As discussed previously, analysis of the marketing mix adopted by competitors can give 
useful clues as to the target markets at which they are aiming and the competitive advantage 
they are seeking to build with those targets. Analysis of marketing mix elements can also 
show areas where the competitor is vulnerable to attack.
Detailed analysis of competitors’ products and services, particularly through the eyes of 
customers, can be used to highlight weaknesses. It is after examining how vacuum cleaners 
typically lost suction as their bags filled, that James Dyson developed the bagless vacuum 
cleaner and revolutionised that particular sector.
Analysis of competitor pricing strategies may identify gaps in the market. For example, 
a firm marketing vodka in the United States noted that the leader offered products at a 
number of relatively high price points, but had left other price points largely vacant. This 
enabled the firm to position its offerings in a different market sector.
The Dyson Small Ball Vaccuum 
Cleaner
Source: Dyson Ltd.

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THE DIMENSIONS OF COMPETITOR ANALYSIS
Both the message and the media used by competitors warrant close analysis. Some com-
petitors may be better at exploiting new advertising techniques or media, whereas others 
may be more adept at public relations. Again, analysis will show where competitors are 
strong and where they are vulnerable.
Finally, understanding the distribution strengths and weaknesses of competitors can also 
identify opportunities. Dell, for example, decided to supply direct to businesses, rather than 
distribute through office retail stores where its established competitors were already strong. 
At the time this was considered an innovative and insightful competitive move.