Competitive Advantage

Marketing is the study and management of exchange relationships. Marketing is the business
process of creating relationships with and satisfying customers.

Product 1 5 +40
To get your company’s name out
4.5
there, you need to make sure.
4
+30
Product 2 3.5

To get your company’s name out

3 +20
there, you need to make sure.
2.5

Product 3 2

To get your company’s name out 1.5

there, you need to make sure.
1

Product 4 0.5

To get your company’s name out 0

there, you need to make sure. 2018 2019 2020 2021
 High

Product 1 Product 2
Competitive

Differentiation
Advantage Product
Differentiation
Marketing is the study and
management of exchange
relationships. Marketing is the Product 3 Product 4
business process of creating
relationships. Low

High Cost Low

 Competitive Advantage
Marketing is the study and management of exchange relationships. Marketing is the business
process of creating relationships with and satisfying customers.

High High

Differentiation Differentiation
Product
Differentiation

Differentiation
Product
Differentiation
Differentiation

Cost Cost

Low Low

High Cost Low High Cost Low

Most businesses already know that social Most businesses already know that social
media platforms play an important role. media platforms play an important role.
 Competitive Advantage

Product 1 Product 1

Product
Product 2 Product 2

Product 3 Product 3
Brand

Product 4 Product 4
 Competitive Advantage
Marketing is the study and management of exchange relationships. Marketing is the business
process of creating relationships with and satisfying customers.

To get your company’s name out

Product 1 there, you need to make sure.

Product To get your company’s name out

Product 2 there, you need to make sure.
Service

To get your company’s name out

Product 3 there, you need to make sure.
 Competitive Advantage
Marketing is the study and management of exchange relationships. Marketing is the business
process of creating relationships with and satisfying customers.

Function
Product Product
Service Service
Product
Lifestyle Experience
Service
Product Product
Service Service
Trust
 Competitive Advantage
Marketing is the study and management of exchange relationships. Marketing is the business
process of creating relationships with and satisfying customers.

Product 1 Product 3
To get your company’s To get your company’s
name out there. name out there.

Product
Service
Product 2 Product 4
To get your company’s To get your company’s
name out there. name out there.
 Competitive Advantage
Marketing is the study and management of exchange relationships. Marketing is the business
process of creating relationships with and satisfying customers.

To get your company’s name out

Product 1 there, you need to make sure.

To get your company’s name out

Product Service Product 2 there, you need to make sure.

To get your company’s name out

Product 3 there, you need to make sure.
 Competitive Advantage
Marketing is the study and management of exchange relationships. Marketing is the business
process of creating relationships with and satisfying customers.

Product 1 Product 2 Product 3

To get your company’s name To get your company’s name To get your company’s name
out there, you need to make out there, you need to make out there, you need to make
sure. sure. sure.
 Competitive Advantage
Marketing is the study and management of exchange relationships. Marketing is the business
process of creating relationships with and satisfying customers.

High High

Product 1 Product 2 Product 1 Product 2

Differentiation
Differentiation

Product Product
Differentiation Differentiation

Product 3 Product 4 Product 3 Product 4

Low Low

High Cost Low High Cost Low

 High
Differentiation Differentiation

Degree of Product Differentiation

Focus
Competitive
Advantage
Marketing is the study and Cost Focus Cost Leadership
management of exchange
relationships. Marketing is the
business process of creating
relationships. Low

Narrow Broad

Scope of Business Activities

 Competitive Advantage
Marketing is the study and management of exchange relationships. Marketing is the business
process of creating relationships with and satisfying customers.

Lower Cost Differentiation

Differentiation Focus Differentiation

Broad Target

• Businesses already know that social media
platforms play an important role.
• Marketing is the business process of creating
relationships.
Narrow Target
• Businesses already know that social media
platforms play an important role.
• Marketing is the business process of creating
relationships.

Cost Focus Cost Leadership

• Businesses already know that social media • Businesses already know that social media
platforms play an important role. platforms play an important role.
• Marketing is the business process of creating • Marketing is the business process of creating
relationships. relationships.
 Advantage Differentiation
Marketing is the study and management of exchange relationships. Marketing is the business
process of creating relationships with and satisfying customers.

High Differentiation Focus Differentiation Focus

Businesses already know that social media Businesses already know that social media
platforms play an important role. platforms play an important role.
Level

Differentiation Focus Differentiation Focus

Businesses already know that social media Businesses already know that social media
platforms play an important role. platforms play an important role.

Low

Level
Low High
 Product Differentiation
Marketing is the study and management of exchange relationships. Marketing is the business
process of creating relationships with and satisfying customers.

• Most businesses already know that social

High media platforms play an important role in
Differentiation online marketing.
Differentiation
Focus
• Marketing is the business process of
creating relationships with and satisfying
Level

customers.

• To get your company’s name out there,

Cost Leadership you need to make sure, most businesses.
Cost Focus
• Most businesses already know that social
media platforms play an important role in
Low
online marketing.

Low Level High

 Product Differentiation
Marketing is the study and management of exchange relationships. Marketing is the business
process of creating relationships with and satisfying customers.

Complex
Competitor 2 Company

Competitor 1

Simple

Fast Slow
 Product Differentiation
Marketing is the study and management of exchange relationships. Marketing is the business
process of creating relationships with and satisfying customers.

• Most businesses already know

Degree of Product Differentiation
High

that social media platforms play an

Differentiation important role in online marketing.
Differentiation
Focus
• Marketing is the business process
of creating relationships with and
satisfying customers.

• To get your company’s name out

there, you need to make sure,
Cost Leadership most businesses.
Cost Focus
Low

• Most businesses already know

that social media platforms play an
important role in online marketing.
Narrow Broad

Scope of Business Activities

 Product Differentiation
Marketing is the study and management of exchange relationships. Marketing is the business
process of creating relationships with and satisfying customers.

High
Most businesses already know that
social media platforms play an important
role in online marketing. Differentiation
Differentiation
Focus

Degree of Product
Differentiation
Business process of creating
relationships with and satisfying
customers. To get your company’s name
out there, you need to make sure, most
businesses.
Cost Leadership
Most businesses already know that Cost Focus
social media platforms play an important
role in online marketing.
Low

Narrow Broad

Scope of Business Activities

 Competitive Advantage
Marketing is the study and management of exchange relationships. Marketing is the business
process of creating relationships with and satisfying customers.

Differentiation Differentiation Differentiation

Focus Focus Focus

Lower Costs Broad Target Lower Costs

Cost Focus Lower Costs Cost Focus

Cost Leadership Cost Focus

Narrow Target
 Competitive Advantage
Marketing is the study and management of exchange relationships. Marketing is the business
process of creating relationships with and satisfying customers.

Relative Cost Position

• Most businesses already know that
social media platforms play an
Differentiation important role in online marketing.
Differentiation
Inferior

Focus
To get your company’s name out • Marketing is the business process of
To get your company’s name out
Relative Cost Position

there, you need to make sure.

there, you need to make sure. creating relationships with and
satisfying customers.

• To get your company’s name out there,

Cost Leadership you need to make sure, most
Superior

Cost Focus businesses.

To get your company’s name out
there, you need to make sure. To get your company’s name out • Most businesses already know that
there, you need to make sure. social media platforms play an
important role in online marketing.
 Competitive Advantage
Marketing is the study and management of exchange relationships. Marketing is the business
process of creating relationships with and satisfying customers.

High Differentiation Focus

To get your company’s name out
there, you need to make sure.
Differentiation
Differentiation
Differentiation
Market

To get your company’s name out

Focus there, you need to make sure.

Cost Leadership
Cost Focus
Cost Focus To get your company’s name out
there, you need to make sure.
Low
Cost Leadership
Narrow Broad
To get your company’s name out
Products there, you need to make sure.
 Competitive Advantage
Marketing is the study and management of exchange relationships. Marketing is the business
process of creating relationships with and satisfying customers.

Low High
Most businesses already know that social
media platforms play an important role in
Differentiation online marketing.
Differentiation
Focus
High

To get your company’s name out

To get your company’s name out Marketing is the business process of
there, you need to make sure.
there, you need to make sure. creating relationships with and satisfying
customers.

To get your company’s name out there,

Cost Leadership you need to make sure, most businesses.
Cost Focus
Low

To get your company’s name out Most businesses already know that social
there, you need to make sure. To get your company’s name out media platforms play an important role in
there, you need to make sure.
online marketing.
 Competitive Advantage
Marketing is the study and management of exchange relationships. Marketing is the business
process of creating relationships with and satisfying customers.

Most businesses already know

High Differentiation Focus Differentiation Focus that social media platforms play
Businesses already know that social media Businesses already know that social media an important role in online
platforms play an important role. platforms play an important role. marketing. Business process of
creating relationships.
Market

To get your company’s name out

Differentiation Focus
Businesses already know that social media
platforms play an important role.
Low
Differentiation Focus
Businesses already know that social media
platforms play an important role.
there, you need to make sure,
most businesses. Most businesses
already know that social media.

Product
Low High
 Advantage Differentiation
Marketing is the study and management of exchange relationships. Marketing is the business
process of creating relationships with and satisfying customers.

High
Function
Product Product
Service Service
Product
Market

Lifestyle Experience
Service
Product Product
Service Service
Trust
Low

Product
Low High
 Product Differentiation
Marketing is the study and management of exchange relationships. Marketing is the business
process of creating relationships with and satisfying customers.

High Lower Cost

Broad Target

Differentiation Focus Differentiation

Cost Focus Cost Leadership

Low

Low High