{"id":69503,"date":"2022-06-22T15:55:00","date_gmt":"2022-06-22T19:55:00","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=69503"},"modified":"2022-06-24T16:06:59","modified_gmt":"2022-06-24T20:06:59","slug":"competitive-marketing-strategies","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/competitive-marketing-strategies\/","title":{"rendered":"Competitive Marketing Strategies for Success"},"content":{"rendered":"\n<p>What are <a href=\"https:\/\/www.shortform.com\/blog\/competitive-advertising\/\">competitive marketing<\/a> strategies? How can you assure your product will outmatch your competitors&#8217; products?<\/p>\n\n\n\n<p>A competitive marketing strategy is a long-term plan that businesses develop to gain a <a href=\"https:\/\/www.shortform.com\/blog\/business-competitive-advantage\/\">competitive advantage<\/a> in the market. William M. Luther provides a few strategies he swears by in <em>The Marketing Plan<\/em>.<\/p>\n\n\n\n<p>Keep reading to learn how to be the best in your market.<\/p>\n\n\n\n<!--more-->\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-why-is-a-competitive-marketing-strategy-important\"><strong>Why Is a Competitive Marketing Strategy<\/strong> Important?<\/h2>\n\n\n\n<p>Luther explores how other businesses offering similar benefits to yours impact your market share and profits. Understanding how many competitors you have and what their capabilities are will help you determine competitive marketing strategies to outmatch them.<\/p>\n\n\n\n<p>Luther argues that the <em>ideal<\/em> market has few competitors providing adequate substitutions for your product or service\u2014this commonly occurs during the introductory stage of the market\u2019s life cycle. During this early stage, potential customers are more likely to buy from you because they have less choice. This makes it easier for you to gain market share, drive your costs down, and strengthen your position before other competitors begin to invade the market. Further, customers automatically perceive your product or service as more valuable because they can&#8217;t find suitable alternatives. This lets you raise prices, increase your profits, and further strengthen your hold over the market.<\/p>\n\n\n\n<p>(Shortform note: How can you come up with ideas for a <a href=\"https:\/\/www.shortform.com\/blog\/what-makes-your-product-unique\/\">unique product<\/a> or service that has no substitutions? In <a href=\"https:\/\/www.shortform.com\/app\/book\/blue-ocean-strategy\"><em>Blue Ocean Strategy<\/em><\/a>, W. Chan Kim and Ren\u00e9e Mauborgne argue that you can achieve this by examining how you can <a href=\"https:\/\/www.shortform.com\/app\/book\/blue-ocean-strategy\/part-1#innovation-is-the-key-to-blue-ocean-strategy\">pursue both <em>differentiation<\/em> (raising standards and creating new features) and <em>low costs<\/em> (eliminating unnecessary features and cutting costs)<\/a>. For example, <a href=\"https:\/\/www.shortform.com\/blog\/cirque-du-soleil-blue-ocean-strategy\/\">Cirque du Soleil<\/a> achieved this by adding elements of theater and cutting animal acts from their performances. These simple changes helped them to redefine circus entertainment, appeal to new <a href=\"https:\/\/www.shortform.com\/blog\/customer-groups\/\">customer groups<\/a>, bypass competition, and generate billions of dollars in revenue.)<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>How to Find a Noncompetitive Market<\/strong><\/h3>\n\n\n\n<p>Luther suggests that you can create these ideal conditions by finding segments in the market that are in the introductory life cycle stage. This involves splitting your target market into different groups of customers and honing in on needs that are yet to be met.<\/p>\n\n\n\n<p>Let\u2019s explore how this would work for your tooth whitening product. You originally decided that your target market includes eco-friendly online consumers who want whiter teeth. However, because many competitors already cater to this market, your chances of gaining market share with your current product are slim. To counter this, you further refine your target market to include customers who want a flavored version of the product. Since this is something that other competitors don\u2019t provide, you instantly increase your odds of success.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Strategies to Succeed in Competitive Markets<\/strong><\/h3>\n\n\n\n<p>While it would be ideal to find a market with few competitors, your ideal market may already be saturated with competitors. In this case, it\u2019s possible to outmatch those competitors who have low market shares and inadequate resources by attempting to better them. Luther suggests that you can achieve this in four ways:<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li><strong>Provide a better product or service<\/strong> by investing in business operations such as manufacturing and quality control.&nbsp;<\/li><li><strong>Pretend to provide a better product or service<\/strong> by investing in effective marketing strategies to make your product <em>appear<\/em> more valuable.<\/li><li><strong>Provide a cheaper product or service<\/strong> by increasing efficiency and cutting costs while maintaining quality.<\/li><li><strong>Provide better customer service<\/strong> by adopting policies that promote customer loyalty and repeat sales.<\/li><\/ol>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Establish Your Position in the Market Through Differentiation<\/strong><\/h3>\n\n\n\n<p>However, Luther argues, there isn\u2019t much point in going up against competitors that already dominate the market, because their position will be too strong to compete against\u2014they\u2019ll have the advantage of a favorable cost structure <em>and<\/em> will have the resources to quickly outmatch any competitive marketing strategies you use to gain market share.&nbsp;<\/p>\n\n\n\n<p>(Shortform note: Luther implies that dominant competitors have more resources than you, therefore, you shouldn\u2019t attempt to outmatch them. However, your chances of success aren\u2019t as bad as he makes out. <a href=\"https:\/\/blog.leanstack.com\/how-to-achieve-breakthrough-by-embracing\/\">Some businesses use their resource limitations to inspire innovations that outperform strong competitors<\/a>. For example, <a href=\"https:\/\/www.shortform.com\/blog\/southwest-airlines-marketing-strategy\/\">Southwest Airlines<\/a> used its resource constraints to reposition its offering, differentiate itself from competitors, and become one of the most profitable airlines in the industry\u2014proving that it is possible to go up against dominant competitors and succeed.)<\/p>\n\n\n\n<p>Therefore, instead of attempting to outmatch dominant competitors, Luther suggests that you should use marketing strategies to differentiate yourself from the competition and establish your own unique position in the market. This involves marketing both your business and your products and services in a way that differs from your competitors and aligns with what customers most want. Luther identifies two ways to achieve this: Define your brand\u2019s personality and reinforce your <a href=\"https:\/\/www.shortform.com\/blog\/marketing-message\/\">marketing message<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>What are competitive marketing strategies? How can you assure your product will outmatch your competitors&#8217; products? A competitive marketing strategy is a long-term plan that businesses develop to gain a competitive advantage in the market. William M. Luther provides a few strategies he swears by in The Marketing Plan. Keep reading to learn how to be the best in your market.<\/p>\n","protected":false},"author":14,"featured_media":63743,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[45,81,104],"tags":[650],"class_list":["post-69503","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-economics","category-marketing","tag-the-marketing-plan","","tg-column-two"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.3 (Yoast SEO v24.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Competitive Marketing Strategies for Success - Shortform Books<\/title>\n<meta name=\"description\" content=\"There are many competitive marketing strategies that will give you the upper hand. Here are the strategies that William M. 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