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MARKETING DECISION MAKERS IN A FIRM MUST CONSTANTLY MONITOR COMPETITORS ' ACTIVITIES
Submitted by: Veronica Urueña Lopez
Student ID: WWA3028
Subject: Marketing Management
Holmes Institute
MARKETING DECISION MAKERS IN A FIRM MUST CONSTANTLY MONITOR COMPETITORS ' ACTIVITIES - THEIR PRODUCTS, PRICES, DISTRIBUTION, AND PROMOTIONAL EFFORTS.
INTRODUCTION
It has long been recognised that the process of monitoring, understanding and responding to market competitors constitutes a significant factor to consider in the marketing activity. However, commonly companies focus on understanding customers and consumers, and the analysis of the competitive arena becomes secondary (Mugo, Wanjau, Ayodo, 2012). Although customers are undoubtedly important, corporations also need to be aware of the competition- all the individual competitors in the market place as well as the overall competitive situation of the company- since the action of the competitors can have a big impact on other businesses, according to Gray (2010). As the author indicates, any aspect of marketing strategy and planning and decision-making involves considering the competition.
Firms must continuously monitor the competitors’ activities and determine what effects such activities are having in the market place. This knowledge is of great relevance for marketing decision-makers because changes in the competitors’ prices, packaging, products, services, advertising, warranties and distribution methods might force companies to adjust some of the components of their marketing mix (Info Entrepreneurs 2014). McGonagle and Vella (2012), identifying who the firm’s competitors are and understanding the approach they take in the market can help businesses to develop and maintain a competitive advantage.
IDENTIFYING THE COMPETITORS
The first step in creating a competitive strategy is to identify the competition. All businesses face competition and therefore they must identify both
Submitted by: Veronica Urueña Lopez
Student ID: WWA3028
Subject: Marketing Management
Holmes Institute
MARKETING DECISION MAKERS IN A FIRM MUST CONSTANTLY MONITOR COMPETITORS ' ACTIVITIES - THEIR PRODUCTS, PRICES, DISTRIBUTION, AND PROMOTIONAL EFFORTS.
INTRODUCTION
It has long been recognised that the process of monitoring, understanding and responding to market competitors constitutes a significant factor to consider in the marketing activity. However, commonly companies focus on understanding customers and consumers, and the analysis of the competitive arena becomes secondary (Mugo, Wanjau, Ayodo, 2012). Although customers are undoubtedly important, corporations also need to be aware of the competition- all the individual competitors in the market place as well as the overall competitive situation of the company- since the action of the competitors can have a big impact on other businesses, according to Gray (2010). As the author indicates, any aspect of marketing strategy and planning and decision-making involves considering the competition.
Firms must continuously monitor the competitors’ activities and determine what effects such activities are having in the market place. This knowledge is of great relevance for marketing decision-makers because changes in the competitors’ prices, packaging, products, services, advertising, warranties and distribution methods might force companies to adjust some of the components of their marketing mix (Info Entrepreneurs 2014). McGonagle and Vella (2012), identifying who the firm’s competitors are and understanding the approach they take in the market can help businesses to develop and maintain a competitive advantage.
IDENTIFYING THE COMPETITORS
The first step in creating a competitive strategy is to identify the competition. All businesses face competition and therefore they must identify both
References: AWARE, Establishing a Competitor’s Capabilities. Available from: http://www.marketing-intelligence.co.uk/pubs/cases/case3.htm [20 April 2014]. AWARE, The Basic Principles of Competitive Intelligence. Available from: http://www.marketing-intelligence.co.uk/resources/competitor-analysis.htm [20 April 2014]. Dubey, R. (2013) ‘An Assiduous Study on Linkage between Competitive Intelligence and Field Leadership for Organizational Development’, International Journal of Information, vol. 5, no. 2, pp. 194-209. Available from: Google Scholar [20 April 2014]. Gray, P. (2010) ‘Competitive Intelligence’, Business Intelligence Journal, vol. 15, no. 4, pp. 31-37. Available from : Proquest [20 April 2014]. Info Entrepreneurs 2014, Understand Your Competitors. Available from: http://www.infoentrepreneurs.org/en/guides/understand-your-competitors/ [20 April 2014]. Lamont, J. (2010) ‘Competitive Intelligence: Capturing a Wider View’, KMWorld Magazine, vol. 19, issue 10, pp. 14-15. Available from : Proquest [20 April 2014]. McGonagle, J.J. and Vella, C.M. (2012) Proactive Intelligence. The Successful Executive’s Guide to Intelligence, Springer, London. Mugo, H.W., Wanjau, K. and Ayodo, E.M.A. (2012) ‘An investigation into competitive intelligence pretices and their effect on profitability of firms in the banking industry: A case of Equity Bank’, International Journal of Business and Public Management, vol. 2, no. 2, pp. 61-71. Available from Google Scholar [20 April 2014]. Nwokah, N.G. and Ondukwu, F.E. (2009) ‘Competitive intelligence and marketing effectiveness in corporate organizations in Nigeria’, African Journal of Marketing Management, vol. 1, no. 1, pp. 010-022. Available from: Proquest [20 April 2014]. Reference For Business, Competitive Intelligence. Available from: http://www.referenceforbusiness.com/management/Bun-Comp/Competitive-Intelligence.html [20 April 2014].