The main objective of developing competitive marketing strategies consists of building and maintaining a sustainable competitive advantage for an organization over others within the same industry. The main purpose is to make the business stand out among the competition. By creating a sustainable competitive advantage, a business can ensure it outlasts the competition long term, no matter what the economic conditions.
Strategic Planning
Strategic management initiatives generally begin at the executive level of the organization as abstract concepts and goals before being distributed through managers and supervisors for implementation at the functional level. Successful competitive marketing positioning strategy begins with a well-considered strategic plan. This plan should include defining the specific market for your product and setting sales goals. Managers also will determine the appropriate marketing tactics and set time lines for implementing and completing the strategic initiative.
Product Differentiation
Successful product differentiation is essential to any competitive marketing positioning strategy. Product differentiation involves determining what it is about your product or organization that makes it better than any other within the industry and implementing marketing strategies that will properly inform consumers of such. This product differentiation establishes a higher value, whether perceived or actual, for your product than for that of competitors' products.
Branding
According to the Brand Identity Guru website, "Branding is the marketing process of applying a personality or identity to a particular product or company." Building a strong brand or corporate identity is essential to the competitive marketing positioning strategy. Effective branding often leads consumers to pay a higher price for a specific brand than they would normally pay for a similar product without the high status brand. For example, a consumer may be willing to pay much more for a pair of toning sneakers from a trusted brand, such as Skechers, than for a similar pair of toning sneakers from a "lesser" brand.
Pricing
Pricing is another essential element of forming a competitive marketing positioning strategy. Products must be priced appropriately to balance the business need to turn a profit with the consumer need to pay a reasonable price for the product. In successful competitive marketing positioning strategy, effective product differentiation and branding will greatly increase the amount of money customers are willing to pay for the particular product.
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