MKTG 311 1st Edition Lecture 6Outline of Last Lecture I. The Tools of Social ResponsibilityII. The Competitive Marketing Strategy Process (4 Steps for Success)A. Identify the company’s competitionsB. Assess the company’s objectives, strategies, strengths, weakness, and reaction patternsC. Select which competitors to attack or avoidD. Develop competitive marketing strategiesOutline of Current Lecture I. Developing Competitive Marketing StrategiesII. New Classification for Competitive Positioning Strategies III. Strategies for Market Leaders, Challengers, Followers and NichersIV. The Marketing Information System (4 parts)V. Step 1: Define Research Problem/Set ObjectivesVI. Exploratory ResearchCurrent LectureI. Developing Competitive Marketing Strategies- Michael Porter’s 4 Basic Competitive Positioning Strategies:o Overall cost leadership: Company achieve the lowest production and distribution costs, goal: Market share. Example- JC Penny’s and Kohlso Differentiation: Concentrate on creating a highly differentiated product-line, class leader in industry. Example: Nordstromo Focus: Used by specialty retailers. Serve a few market segments to thebest of their ability. Example- Talbotso Middle-of-roadersII. New Classification for Competitive Positioning Strategies- Focuses on customer value- Operational excellence: Focus on price, but also convenience. Example- Geico- Customer Intimacy: They segment their customer, learn as much as they can, tailor the product to those customers. Example- Ace Hardware- Product Leadership: Offers a continuous stream of cutting edge products. Example- AppleIII. Strategies for Market Leaders, Challengers, Followers and NichersMarket Leader Market Challenger Market Follower Market Nicher These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.Strategies Strategies Strategies StrategiesExpand total market Full frontal attack Follow closely By customer, geographic market, quality-price, serviceProtect market shareIndirect attack Follow at a distance Multiple nichingExpand market shareIV. The Marketing Information System (4 parts)- Marketing Information System- Process that helps determine what information marketing managers need and gather, sort, analyze, stores and distributions information in a timely manner.1. Internal Company Data: Contained within the intranet (Company’s internal network) and includes the company’s internal record of sales:tells us who purchases, how much, and how often.2. External Company Data: Includes information on competitors and what is happening in the environment. What types: newspapers, magazines, competitor marketing pieces: adds, brochures, annual reports, websites, online library resources: Lexus Nexus3. Market Research: When formal studies are used to find the answer the questions the company doesn’t know.4. Data Mining: Analyses the information in marketing information system.V. Step 1: Define Research Problem/Set Objectives- Determine the problem and then engage in a research objectiveVI. Exploratory Research- Exploratory Research- Starting point for research studies- Qualitative Research- Nonnumeric, detailed verbal/visual information about consumer’s attitudes, feelings and buying behaviors.- Different Forms of Exploratory Research:1. Consumer Interviews- (1 on 1) market research and consumer2. Focus group- Most popular includes 5-9 consumers, facilitated by a moderator and leads the consumers in questions about a product, advertisement, marketing technique.3. Projective technique- Used by marketers when they try to get at consumer underlying feeling, they feel consumers may be unwilling orunable to express their true feelings. Example- Georgia Pacific Brawny Towels.4. Case Studies: Comprehensive examination of a