Choosing the right competitive advantage

Date: 2015-10-07; view: 514.

Identifying possible competitive advantage

Competitive advantage is an advantage over competitors gained by offering consumers greater value, either through lower price or by providing more benefits that justify higher price. To find points of differentiation, marketers must think through the customer's entire experience with the company's product or service. Through product differentiation, brands can be differentiated on features, performance, or style and design. Differentiation can be based on Products, Services, Channels, People, and Image. For example, by gaining the approval of the American Heart Association as an approach to a healthy lifestyle, Subway differentiates itself as the healthy fast-food choice.

Not all brand differences are meaningful or worthwhile; not every difference makes a good differentiator. Each difference has the potential to create company costs as well as customer benefits. A difference is worth establishing to the extent that it satisfies the following criteria:

· Important: The difference delivers a highly valued benefit to tar-get buyers.

· Distinctive: Competitors do not offer the difference, or the company can offer it in a more distinctive way.

· Superior: The difference is superior to other ways that customers might obtain the same benefit.

· Communicable: The difference is communicable and visible to buyers.

· Preemptive: Competitors cannot easily copy the difference.

· Affordable: Buyers can afford to pay for the difference.

· Profitable: The Company can introduce the difference profitably.