International Journal of Academic Research in Economics and Management Sciences

November 2012, Vol. 1, No. 6

ISSN: 2226-3624

36

Competitive Success: Ambition or Necessity?

Anca Francisca CRUCERU
Lecturer, PhD, Faculty of Marketing, Academy of Economic Studies Bucharest
Email: ancacruceru1@gmail.com

Abstract

Any company multinational that operates in a competitive market will ask a series of questions
to find solutions to achieve profitable business. From a marketing perspective, competitive
success can not be achieved by change but through sustained efforts, consistent towards the
adoption and implementation of competitive strategies capable of leading the company to
achieve a better competitive position on the relevant market. Marketing strategy is built from a
careful analysis capabilities available company so that they can be given a unique value target
consumers and at the same time, to achieve differentiation from other competitor offer.

Keywords: competitive marketing strategy, competitive positioning, core competencies

1. Introduction

In a global economy dominated by strong competition and rapid changes in consumer behavior
towards mentality and consumption of consumer goods and services, managers need to find
viable solutions to maintain competitive position held. This is not possible without a market
and product awareness (Kotler, 1994), without clearly defined strategic direction to show
how an organization uses strategy to adopt and/or changing environmental aspects more
favorable alignment (Manu and Sriram, 1996). Based on targeting and knowledge of customer
needs, managers try to develop competitive skills based on practical marketing concepts such
as marked segmentation, positioning, marketing strategy, marketing mix, etc.

According to the authors W. J. Keegan, J. H. Davidson and E. A. Brill (2003), strategic focus
includes the following efforts by the organization:

(1) to be profitable; to achieve an appropriate balance between business needs
expressed in terms of profit and consumer needs for a certain value;
(2) to be offensive; behave proactively, to shape the market, prompting other
competitors to follow;
(3) to integrate marketing vision at all hierarchical levels;
(4) to adopt a strategy; it requires careful consideration of the competition;
(5) to effectively execute strategy with daily deployment plan based on deadlines.

Regarding marketing strategy, its purpose it well known by managers, namely placing the
organization in a favorable competitive position and, at the same time, lead to value creation
and competitive advantage. When developing a competitive advantage, the focus will be on
International Journal of Academic Research in Economics and Management Sciences
November 2012, Vol. 1, No. 6
ISSN: 2226-3624

37

two essential factors: it must always be based on something of value to the customer and not
price alone and it must be sustainable (Brooksbank, 1994).

Competitive Positioning

Competitive positioning is not about the organization aims to provide marked through
marketing strategy but what they charge consumers vis--vis this offer. Clear differentiation by
specific marketing allows easier identification of this offer by consumers. It is considered that
there are two steps for obtaining the competitive position (Darling, 2001):

(1) establishing the initial market offering in the minds of consumers and
(2) differentiating the market offering from competitors in the minds of consumers.

Based on Porter (1985), Prahalad and Hamel (1990), Hunt and Morgan (1995), Slaters and
Narver (1995), managers tried to seek out market based sources of advantage through
differentiation, cost reduction or focus, and finally to find advantage through an internal
analysis. Capabilities of the organization must be determined through a detailed comparative
analysis of what the organization has compared to other direct competitors. Once known
strengths of the competitors, managers will focus on developing the ability to learn faster than
their competitors and to transform this into a competitive advantage (Dickson, 1992). This
competitive advantage should be seen as a superior marketplace position based on providing
customer value and/or the achievment of lower relative costs, which results in market share
dominance and business performance (Hunt and Morgan, 1995; Day and Wensley, 1988). But
the question which troubled many managers of this powerful organization in the European
market will be on the identification of core competencies.

Core Competencies

Core competencies are the unique ability of the company can not be copied by direct
competitors and giving them a competitive advantage in creating and providing value target
consumers.

Namely core capabilities or distinctive competencies this concept was developed by C. K.
Prahalad and G. Hamel in a series of articles and in the book Competing for the Future (1994),
they stressed that these capabilities must be competitively unique.

Also, this capabilities will change over time and it really is essential to achieve this by repeated
assessments by managers due to changes in the environmental factors.

According to P. Kotler and Keller (2009) a core competency has three characteristics:
(1) it is a source of competitive advantage in that it makes a significant contribution to
perceived customer benefit;
(2) it has applications in a wide variety of markets;
(3) it is difficult for competitors to imitate.
International Journal of Academic Research in Economics and Management Sciences
November 2012, Vol. 1, No. 6
ISSN: 2226-3624

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Between choosing these core competencies and implemented marketing strategy should be a
direct link because the strong competitive strategies are considering offer existing competitors
on the relevant market but also in the implementation of marketing in the company.

The authors Tvede and Ohnemus (2001) an approach to marketing strategies based on two
distinct situations, positive and negative, on action than can be taken and existing marketing
skills.

Table 1. Criteria for selection of competitive marketing strategies

Competitor with a
better offer
Weaker competitor
offer




Competitor with a
better marketing
improving supply
differentation
developing a stronger
network
implementation
strategies
faster introduction of
products on the market
improving the image
intensify efforts to sell
increased promotional
efforts
cooperation
compete at the same
level
developing a stronger
network
implementation
strategies


Weaker competitor
marketing
improving supply
cooperation
stronger implementation
strategies
compete at the same lavel
faster introduction of
products on the market
compete at the same
level
Sursa: Lars Tvede, Peter Ohnemus, Marketing Strategies For The New Economy, The
Wiley&Sons Ltd., England, 2001, p.142

These competitive strategies can be addressed if the analysis of the competitive situation of the
company is depending on the position of a competitors. But the difficulty of identifying direct
competitor and, especially supply and marketing analysis developed by the company can be a
serious impediment to the correct choice of these strategies according to two criteria
presented. These competitive strategies are only guiding framework, choosing the best
strategic choice is an example of marketing skill and craftsmanship of those who use them
(Cruceru, 2000). However, managers of these company are interested to analyse, identify and
develop marketing skills necessary to achieve competitive success. How strategic orientation of
the company is considering two components, customers and competitors, it is obvious that the
starting point is the marketing analysis. According to Radulescu (2012) an important step in
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the analysis is to determine the estimated market, in other words the size of the market in
which the company proposes to achieve over a period of time and the potential marked,
defined as the side of the maximum possible achievable. It can be concluded that the
existence of marketing specialists company is imperative to make these decisions and to have a
goal of competitive success. But alone, marketers will not do this, because it requires
management and open to the strategic orientation. Therefore, organizational capabilities can
be classified into managerial, marketing, and technical capabilities (Spanos and Lioukas, 2001).
Marketing capabilities includes different sets of marketing-related capabilities such as market
research tools, strategic marketing management, marketing mix policies, marketing
complementarities (Verona, 1999).

Conclusion

EU legislation states marked differences which can generate distortions of competition and
obstacles to the proper functioning of the internal market. These legislative differences lead to
difficulties when engaged transboundary marketing activities, advertising campaigns and sales
promotion. (Radulescu, Radulescu, Cetina, 2009)

Under these conditions, competitive success is more a necessity than an ambition of
companies, is an aim in itself when we consider the work done by them. The specific marketing
actions can be achieved management objectives proposed and developed these unique
capabilities decisive in the competition. The marketing voice should be heard in the
executives board room and a greater influence should be guaranteed for marketing since
marketing performance is one of the best roots to achieve a competitive advantage that will
enable an organization to attract and retain customers paying satisfactory prices (Mamoun N.
Akroush, 2012).

What must be understood in terms of adopting and implementing competitive marketing
strategies is that they will be build and will determine the competitive advantage held by the
company on the relevant market. Basically, the more dynamic competitive environment is
especially required to treat very seriously the implementation of the marketing strategy. Build
unique competencies of the organization is, on the other hand, an essential starting point in
this regard as it will provide the unique value to consumers. The company will establish a strong
competitive background able to enable it achieve marketing objectives and occupying a strong
position on the relevant market.

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