GENERATING MARKETING STRATEGY PRIORITIES BASED ON RELATIVE COMPETITIVE POSITION

Abstract

The marketing manager has little or no guidance in formulating competitive strategies. This article presents a marketing strategy planning tool based on customers' perceptions of the positions of competing brands across various product attributes. The method, called “Simultaneous Importance‐Performance Analysis,” advocates focusing attention on relevant competitors' positions and attacking or defending market territory selectively. An example of its application is provided to illustrate its usefulness. The tool provides a framework for prioritizing alternative marketing strategies and is helpful in deciding on the allocation of limited marketing resources to design an efficient short‐range marketing plan. We will first discuss the nature of competitive advantage strategy and look at the marketing manager's dilemma on how to select tactics to develop a competitive advantage. We will then describe and illustrate “simultaneous importance — performance analysis,” based on importance‐performance analysis. Finally, we will suggest how this technique might be integrated into a company's strategic planning system.