Developing Marketing Strategies and Plans Essay

Developing Marketing Strategies and Plans - Essay Example Marketers also need to be careful about their cost structures. Companies that seem to have firm control over their cost especially in relation to industry requirements are the primary competitors. Also, if a company operates in an industrial that is largely international, then chances are that the most competitive companies are the ones who have a well established global markets and they qualify as primary competitors. On the other hand, some companies may be operating in industries with high levels of vertical integration. For instance, a company liaises with its suppliers to create a larger market force. Such companies end up dominating the market and therefore qualify s primary competitors. (Hope, 1997) The automobile industry is affected by cost structure. It can be argued that they spend most of this cost on production and advertising. In the nineties, Honda managed to establish a name for itself especially in the US market because it invested in new technologies. Consequently, its products were superior to those ones offered by other competitors such as Toyota and it became a primary competitor for Toyota. The second approach that companies can use to identify their primary competitors is through marketing. In this approach, companies need to look out for those companies that satisfy the same needs that they do. The current market has changed drastically. Primary competitors are not just those companies offering the exact same things offered by the company; they are firms that can serve similar needs. This approach requires that marketers trace all the captivities involved while using their product and then examine what other firms perform the same... The researcher states that marketers, that are using the industrial outlook need to realize that all companies providing similar products or services fall in the same categories. Marketers need to ask themselves whether their companies represent the monopolistic structure, oligopolistic structure, monopolistic competition structure or pure competition structures since each of these structures will have different primary competitors. The first structure is made up of only one company providing a particular good or service. Such companies may not need marketers as they dominate the market. Oligopolistic structures may have some competitors in the market but they are fe in number. On the other hand, monopolistic competition applies to those who specialize in certain products. This category has to identify their competitors. Lastly, there is the pure competition structure where all competitors offer the same products. The automobile industry, that was discussed as an example in this essa y can be classified under the pure competition sector but there may be instances when it also falls under the monopolistic competition structure. The essay suggests that the competition became a major issue today, that is affecting marketing strategies and companies, that need to be aware of this. Market followers can adopt leaner production strategies and reduce prices of common products. Market challengers can use price, distribution, promotion and product innovation as ways of maintaining competitive advantage.