Chapter Preview plored the basics of market- fers that deliver more value than the offers of competitors seeking to
18 Chapter Preview plored the basics of market- fers that deliver more value than the offers of competitors seeking to
Creating Competitive Advantage
In previous chapters, you ex-
tage, companies must use this understanding to design marketing of-
ing. You learned that the aim of marketing is to create value for win the same customers. In this chapter, we look first at competitor customers in order to capture value from them in return. Good market-
analysis—the process companies use to identify and analyze competi- ing companies win, keep, and grow customers by understanding cus-
tors. Then we examine competitive marketing strategies by which tomer needs, designing customer-driven marketing strategies,
companies position themselves against competitors to gain the great- constructing value-delivering marketing programs, and building cus-
est possible competitive advantage.
tomer and marketing partner relationships. In the final three chapters, Let’s first look at Korean carmaker Hyundai (rhymes with Sunday). we’ll extend this concept to three special areas: creating competitive
When the Great Recession of 2008 battered the automobile industry, advantage, global marketing, and social and environmental marketing
most car companies slashed their marketing budgets and battened sustainability.
down the hatches to weather the economic storm. But one company— In this chapter, we pull all the marketing basics together. Under-
Hyundai—did just the opposite. It increased its marketing spending as standing customers is an important first step in developing profitable
rivals were cutting back. And it found just the right value proposition customer relationships, but it’s not enough. To gain competitive advan-
for the changing economic times and marketplace.
Hyundai: Hitting the Accelerator When Competitors Throttle Down
C ing. Escapism was the order of the day, and most advertis- egy in the face of the economic downturn produced stunning re-
onsider the state of affairs when viewers tuned promise in an eye-popping nine high-profile spots on the into the Super Bowl in February 2009. Banks
Academy Awards.
had failed, the stimulus package still hadn’t been announced, and unemployment was surg-
Hyundai’s aggressive, customer-focused marketing strat-
ers played right along, with brands like Bud Lite and Coke sults. The Hyundai Assurance program resonated with offering happy-happy, joy-joy ads that jarred with reality.
debt-wary consumers, and Hyundai’s sales rocketed 59 percent There was one advertiser, however, that didn’t. In the third
for January and February 2009 as compared with the previous quarter, in an otherwise standard-issue, cars-rolling-through-
year. Nielsen’s postgame survey showed that 43 percent of par- the-landscape spot, a voice-over brought into the light of
ticipants who saw the ads improved their opinion of Hyundai. day something that most people didn’t want to talk about.
The Hyundai Assurance program, “made people feel Hyundai “Now finance or lease a new Hyundai, and if you lose your
cared about their situation—that they were sympathetic,” said income in the next year, you can return it with no impact on
one analyst. The ads said, “We hear you. We understand. We’re your credit.”
in this together.”
With that bold stroke, Hyundai—yes, Hyundai—an Hyundai’s competitive marketing strategy is all about op- automaker not historically known for fearless marketing,
portunity, aggressiveness, and speed. In 1986, then virtually un- began in earnest a frontal assault on a recession that was
known Hyundai entered the U.S. market with its small, not only dampening consumer enthusiasm but also drown-
entry-level Hyundai Excel, priced at an incredibly low $5,000. ing it. Then, in sharp contrast to the tail-between-the-legs
After some early success, Hyundai hit a speed bump with de- mode of Hyundai’s rivals, many of whom had slashed their
sign and quality. The car’s outdated looks, underpowered en- marketing budgets, the Korean carmaker put the pedal to
gine, and flimsy engineering made it the butt of jokes by the marketing metal by repeating the Hyundai Assurance
late-night comics. David Letterman once joked that if you
Parts
» | Marketing: Creating and Capturing Customer Value 3
» | Marketing: Creating and Capturing Customer Value 11
» | Marketing: Creating and Capturing Customer Value 13
» | Marketing: Creating and Capturing Customer Value 25
» | Marketing: Creating and Capturing Customer Value 29
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 37
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 41
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 43
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 51
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 55
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 57
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 63
» | Analyzing the Marketing Environment 65
» | Analyzing the Marketing Environment 71
» | Analyzing the Marketing Environment 73
» | Analyzing the Marketing Environment 77
» | Analyzing the Marketing Environment 79
» | Analyzing the Marketing Environment 81
» | Analyzing the Marketing Environment 85
» | Analyzing the Marketing Environment 87
» | Analyzing the Marketing Environment 89
» | Managing Marketing Information to Gain Customer Insights 97
» | Managing Marketing Information to Gain Customer Insights 99
» | Managing Marketing Information to Gain Customer Insights 103
» | Managing Marketing Information to Gain Customer Insights 109
» | Managing Marketing Information to Gain Customer Insights 111
» | Managing Marketing Information to Gain Customer Insights 113
» | Managing Marketing Information to Gain Customer Insights 115
» | Managing Marketing Information to Gain Customer Insights 127
» | Managing Marketing Information to Gain Customer Insights 131
» | Consumer Markets and Consumer Buyer Behavior 133
» | Consumer Markets and Consumer Buyer Behavior 137
» | Consumer Markets and Consumer Buyer Behavior 141
» | Consumer Markets and Consumer Buyer Behavior 143
» | Consumer Markets and Consumer Buyer Behavior 159
» | Consumer Markets and Consumer Buyer Behavior 163
» | Business Markets and Business Buyer Behavior 165
» | Business Markets and Business Buyer Behavior 175
» | Business Markets and Business Buyer Behavior 179
» What is Eaton’s value proposition?
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 189
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 193
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 197
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 203
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 205
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 207
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 209
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 211
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 213
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 219
» | Products, Services, and Brands: Building Customer Value 223
» | Products, Services, and Brands: Building Customer Value 225
» | Products, Services, and Brands: Building Customer Value 229
» | Products, Services, and Brands: Building Customer Value 237
» | Products, Services, and Brands: Building Customer Value 245
» | Products, Services, and Brands: Building Customer Value 247
» | Products, Services, and Brands: Building Customer Value 249
» | Products, Services, and Brands: Building Customer Value 251
» | Products, Services, and Brands: Building Customer Value 257
» | New Product Development and Product Life-Cycle Strategies 259
» | New Product Development and Product Life-Cycle Strategies 271
» | New Product Development and Product Life-Cycle Strategies 273
» | New Product Development and Product Life-Cycle Strategies 279
» | New Product Development and Product Life-Cycle Strategies 281
» | Pricing: Understanding and Capturing Customer Value 289
» | Pricing: Understanding and Capturing Customer Value 291
» | Pricing: Understanding and Capturing Customer Value 295
» | Pricing: Understanding and Capturing Customer Value 299
» | Pricing: Understanding and Capturing Customer Value 305
» | Pricing: Understanding and Capturing Customer Value 307
» | Marketing Channels: Delivering Customer Value 339
» | Marketing Channels: Delivering Customer Value 347
» | Marketing Channels: Delivering Customer Value 351
» | Marketing Channels: Delivering Customer Value 367
» | Retailing and Wholesaling 373
» | Retailing and Wholesaling 377
» | Retailing and Wholesaling 379
» | Retailing and Wholesaling 393
» | Retailing and Wholesaling 395
» | Retailing and Wholesaling 397
» | Retailing and Wholesaling 401
» | Retailing and Wholesaling 405
» | Communicating Customer Value: Integrated Marketing Communications Strategy 407
» | Communicating Customer Value: Integrated Marketing Communications Strategy 411
» | Communicating Customer Value: Integrated Marketing Communications Strategy 413
» | Communicating Customer Value: Integrated Marketing Communications Strategy 415
» | Communicating Customer Value: Integrated Marketing Communications Strategy 429
» | Communicating Customer Value: Integrated Marketing Communications Strategy 433
» | Advertising and Public Relations 435
» | Advertising and Public Relations 439
» | Advertising and Public Relations 441
» | Advertising and Public Relations 443
» | Advertising and Public Relations 445
» | Advertising and Public Relations 447
» | Advertising and Public Relations 449
» | Advertising and Public Relations 453
» | Personal Selling and Sales Promotion 463
» | Personal Selling and Sales Promotion 469
» | Personal Selling and Sales Promotion 471
» | Personal Selling and Sales Promotion 481
» How is the sales force at Nestlé Waters structured? outsells its top competitors.
» | Direct and Online Marketing: Building Direct Customer Relationships 495
» | Direct and Online Marketing: Building Direct Customer Relationships 499
» | Direct and Online Marketing: Building Direct Customer Relationships 507
» | Direct and Online Marketing: Building Direct Customer Relationships 509
» | Direct and Online Marketing: Building Direct Customer Relationships 515
» | Direct and Online Marketing: Building Direct Customer Relationships 525
» | Creating Competitive Advantage 527
» | Creating Competitive Advantage 529
» | Creating Competitive Advantage 537
» | Creating Competitive Advantage 549
» | The Global Marketplace 551
» | The Global Marketplace 553
» | The Global Marketplace 561
» | The Global Marketplace 573
» | Sustainable Marketing: Social Responsibility and Ethics 581
» | Sustainable Marketing: Social Responsibility and Ethics 583
» | Sustainable Marketing: Social Responsibility and Ethics 587
» | Sustainable Marketing: Social Responsibility and Ethics 595
» | Sustainable Marketing: Social Responsibility and Ethics 603
» | Sustainable Marketing: Social Responsibility and Ethics 605
» | Marketing by the Numbers A21
» | Marketing by the Numbers A27
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