Competitive Advantage – 1. (strategic marketing definition) A competitive advantage exists when there is a match between the distinctive competences of a firm and the factors critical for success within the industry that permits the firm to outperform its competitors. Advantages can be gained by having the lowest delivered costs and/ or differentiation in terms of providing superior or unique performance on attributes that are important to customers. 2. (global marketing definition) A total offer, vis-a-vis relevant competition, that is more attractive to customers. It exists when the competencies of a firm permit the firm to outperform its competitors.
Competitive Analysis – The analysis of factors designed to answer the question, “how well is a firm doing compared to its competitors?’ The analysis goes well beyond sales and profit figures in assessing the firm’s ratings on such factors as price, product, technical capabilities, quality, customer service, delivery, and other important factors compared to each of the major competitors.
Competitive Bidding – Same as: Bidding. The practice of competition in which firms submit offers or bids that detail the services and product specifications to be offered at a stated price.
Competitive Brands – The brands that are considered as alternatives by buyers in a particular market segment; sometimes called the evoked set. Occasionally, it is used to mean a (smaller) set of products which a particular seller wises to be competing with; more rarely, it means the full set of competitors in fact competing in a given market.
Competitive Differential – The ways in which a firm differs from competing firms which makes for a greater or less acceptance of a firm by the market.
Competitive Environment – The number and strength of rival firms competing in the market for a product.
Competitive Frame – The list of specific brands with which a given brand competes most directly for customers.
Competitive Intelligence – The system gathering of data and information about all aspects of competitors’ marketing and business activities for the purposes of formulating plans and strategies and making decisions.
Competitive Parity Budgeting – An advertising budget method whereby an advertiser chooses to use a level of spending on advertising that is similar to the advertising spending level being used by major competitors.
Competitive Position – the position of one business relative to others in the same industry. there are multitude of factors contributing to (an which can be used to measure) competition. The major categories are (1) market position – relative share of market, rate of change of share, variability of share across segments, perceived differentiation of quality/ service/price, breadth of product, and company images; (2) economic and technological position – relative cost position, capacity utilization, technological position, and patented technology, product or process, and (3) capabilities -management strength and depth, marketing strength, distribution system, labor relations, relationships with regulators.
Competitive Stage – The advertising stage a product reaches, as advanced by a certain classification, when its general usefulness as one of a type of product is widely recognized, but its individual superiority over similar brands needs to be established by the advertiser. Advertisements in this stage usually stress the product’s differential. See: Spiral
Competitive Strategy – A plan that attempts to define a position for the business that utilizes the competitive advantages that the business has over its competitors.
Complimentary Goods – Items related in use so that an increase in the quantity demanded by the market of one results in or accompanies an increase in the quantity demanded of the other, assuming prices remain the same. The Cross_Elasticity value, if algebraically negative, is usually considered evidence that the two goods or services are complementary, provided no change in the real income of the buyer occurred. Zero cross-elasticity might be accepted as a criterion of independence.
Complementary Products – 1. (product development definition) The products that are manufactured together, sold together, bought together, or used together. One aids or enhances the other. 2. (economic definition) Those products whose demands are positively related, i.e., an increase in quantity demanded by the market of product A results in an increase in the quantity demanded for product B. 3. (environment definition) A product that is used or sold jointly with other products, such as razors and blades, or toothbrush and toothpaste.
Complement of Markup Percentage – One hundred percent less markup percentage on retail.
Compliment Approach – A sales approach in which the salespersons begin the sales call by complimenting the prospect.
Completed Fertility – The average number of births for all women in the society.
Completely Randomized Designed – An experimental in which the desired treatment are assigned to the test units in a random fashion. 2. An experimental design in which the experimental treatments are assigned to the test units completely at random.
Completeness Test – In ADP, a type of validation check to determine that all the necessary data fields are present in a transaction. See: Authorization Check
Complexity – (1) A measure of the relative difficulty a new product is to understand, use and/or comprehend. (2) With respect to the Diffusion Rate, how difficult an innovation is perceived to be to understand and to use. See: Characteristics of Innovation
Component Parts – Same as: Parts. The industrial products (or subassemblies) that either are ready for direct assembly into the finished product or require only a minor amount of further processing. Examples are switches, transistors, motors, gears,nuts, bolts, and screws.
Composition – (1)The activity of assembling type and plates in preparation for printing. (2) Often used to mean the same layout.
Compound Duties – The duties that provide for specifics, plus ad valorem duties to be levied in the same articles.
Comprehensive – A layout prepared to resemble the finished advertisement as closely as possible, but in which the copy is not written out.
Comprehensive Layout – A detailed mock -up of a print ad presented to clients in order to gain their approval for the advertising approach before significant production costs are incurred for obtaining artwork and typesetting.
Computer Assisted Interviewing (CAI) – The conduct of surveys using computers to manage the sequence of questions and in which the answers are recorded electronically through the use of keyboard.
Computer Integrated Manufacturing (CIM)- An approach to managerial control that focuses on the automated flow of information among participants in the stages of manufacturing.
Computerized Buying – The use of computers in managing the purchasing process. Such tasks as calculating current inventory figures, computing economic order quantities, preparing purchase orders, developing requests for vendor quotations, expediting orders, and generating printouts of dollar spent on vendors and products can be part of the system. Some system may have decision support models to assist in analysis of purchase alternatives.
Conative Judgment – As applied to a buyer of goods or services, his decision to take a certain action, to try a product or service. See: Cognitive Judgment, Normative Judgment, Value Judgment
Concealed Discount – A situation in which price-fixed and non-price-fixed items are listed on the same purchase order at a common discount, which is then reflected in the invoice. Care must be taken not to run afoul of the price discrimination provisions of the Robinson-Patman Act