Businesses wanting to compete in an ever-changing market should focus on their image rather than their price, according to new research from Nyenrode Business University.
The research, which looked at Western European organizations, has identified which competitive strategies are the most effective.
According to Professor Henry Robben, Professor of Marketing:
“We found that it is especially the image component of marketing strategies that predicts whether a company has an edge over other companies in the market.”
“The most successful companies employ marketing strategies in which image predominates. In addition, we found that losing companies significantly competed on low price more often. As a consequence, we could formulate a simple competitive recipe for winning in a market, create a positive and strong image, and do not compete on price.
“The first question to ask is where a company should compete rather than how it should compete.”
They also surveyed the 21 core marketing processes in organizations. It appears that processes such as new product development and seeking partnering and alliances are high on decision-makers’ agenda.
However, according to the research these processes are not related to failing or winning in a market. It is processes such as selecting target markets and strategic planning that differentiate between winning and losing in a market.
Using an elaborate questionnaire, the project collected data from nearly three thousand respondents, representing hundreds of companies and business units. The research has been done with Professor Rudy Moenaert of TIAS School for Business and Society. Results have been reported in their book “Marketing Strategy & Organisation” and in their forthcoming book “The Customer Leader.”