Question

Please answer the following question in 10 sentences or less.

Why is a competitive analysis important for a brand like Ford in doing their planning for their advertising and IBP investments?

Answer 1

The competitive analysis is more like business strategy to deal with market competition. It helps in identifying the strengths and weaknesses of the market competitors, related strategies which will offer specific advantage, introduce the barriers to inhibit competition and to exploit any kind of weaknesses. It helps in determining the existing and potential competition in the market, by having the customer’s viewpoint and later by having competitors view based on their competitive strategies in the market. This gives more information about competitor and what elements motivates them. Once this information is in place then it becomes easy to find the vulnerable areas of the competitors and concentrate towards “major component cost”, “prime customer motivators”, etc. Hence, the outcome of the competitor analysis helps in creating marketing strategy and focus towards important areas such as pricing, advertising, product, distribution and promotion.