Perceptual position and competitive brand strategy in a two-dimensional, two-brand market
Article Abstract:
Competitive marketing is dependent on a branding strategy that positions brands for their optimal perceptual effect on consumers. An analysis of a competitive brand strategy model used to explain competition and perceptions and preferences in a two dimensional, two brand market, leads to the conclusions that: marketing strategies are dependent upon the positioning of brands; marketers can reposition brands to increase profits; and competition in advertising and distribution ameliorate the effects of price competition. Additionally, results indicate that market volume depends on the positioning of brands since closely positioned brands compete intensely for the same buyers. Results also show that more differentiation in products leads to less overlap and higher market volume. To increase profits, marketers should increase the differentiation of their brands in order to move perceptions away from those of competitors' products.
Publication Name: Management Science
Subject: Business, general
ISSN: 0025-1909
Year: 1989
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Asset stock accumulation and sustainability of competitive advantage
Article Abstract:
The sustainability of a company's market position is predicated on the accumulated stock of assets and the the ability of the company to substitute or imitate assets over time. If a market position is achieved or maintained by expenditure of assets, it is necessary to account for the opportunity costs of said assets in order to correct for inflated measured returns. Hidden cross-subsidization prevents managers from realizing that it is the expenditure of resources rather than the market combination that gives competitive advantage. Then managers do not protect resources. Sustainability of market position hinges on the ease with which assets can be imitated or substituted. When the cost of resource acquisition equals the value created by implementing the strategy, the strategy will generate normal returns.
Publication Name: Management Science
Subject: Business, general
ISSN: 0025-1909
Year: 1989
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Competitive maps: the structure underlying asymmetric cross elasticities
Article Abstract:
The underlying asymmetric cross elasticities for a large class of market-share attraction models are portrayed using a special case of three-mode factor analysis. Competitive patterns are revealed corresponding to self-price competition and market sales of major brands. A joint space results for analysis of the brand space. One set of positions shows how brands exert control over the competition. The other shows how brands are influenced by competitors. Competitive pressures are derived from interset distances.
Publication Name: Management Science
Subject: Business, general
ISSN: 0025-1909
Year: 1988
User Contributions:
Comment about this article or add new information about this topic:
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