Professional Documents
Culture Documents
Advantage
SMM
by David A.Aaker
9th Edition
All men can see the tactics whereby I conquer, but one
none can see is the strategy out of which great victory is
evolved
- Sun-Tzu, Chinese Military Strategist
1. Operational Excellence
2. Product Leadership
Firms that focus on product leadership excel at technology
and product development. As a result these firms offer
customers the most advanced, highest quality goods and
services in the industry. e.g. Microsoft constantly upgrades
and stretches its software technology while creating
complimentary products that solve customers needs. Other
examples are Pfizer, Intel and 3M.
Common attributes:
Go into self obsolenecy and rapidly introduce new products
Target narrow homogenous market
Creative, decentralized and adaptable organizational culture
Relational Advantages
- Brand loyal customers
- High customer switching
costs
- Long-term
relationships
with
supply
chain
partners
- Strategic
alliance
agreements
- Strong bargaining power
Legal Advantages
- Patents and trademarks
- Strong contracts
Organizational Advantages
- Abundant
financial
resources
- Modern
plant
and
equipment
- Effective intelligence
- Culture, vision and goals
- Organizational goodwill
Human
Resource
Advantages
- Management talent
- Organizational culture
- Employee commitment
Product Advantages
-
Brand equity
Superior quality
Product expertise
Guarantees and warranties
Outstanding
customer
service
R&D
Pricing Advantages
-
Promotion Advantages
-
Company image
Large promotion budget
Superior sales force
Creativity
Marketing expertise
Distribution Advantages
-
Role of Synergy
Appealing Design
System Solutions
Niche Specialist
Superior Quality
A quality strategy means that the brand will be perceived as
superior to other brands in the reference set. Usually
superior quality will be associated with a price premium
It offers host of advantages such as it provides an
opportunity to be a category leader, it provides employee
motivation and is worthwhile in terms of profits
It is important to focus on visible dimensions of products /
services affecting perceptions e.g.
- Cable suppliers: a professional attitude on part of the
installation team
- Tomato juice: thickness
- Cleaners: A lemon scent
- Cars: a solid door-closure
- Clothes: higher price
Superior Quality
Thank you