the impact of competition on strategic planning

The Impact of Competition on Strategic Planning

Competition can have a tremendous impact on strategic planning for marketers . Competition can dictate the advertising budget , the types of advertising chosen and affect both a firm 's suppliers and channels of distribution . Even though a firm 's own business objectives must be kept at the forefront , it can be very useful to compare the advertising spending and strategy of one firm with those of its competitors . If a firm is able to determine how much is being spent on advertising and on what types

of advertising by its competitors , the firm itself may want to consider a budget and messaging strategy of a similar type and size In theory , this can help a firm stay competitive and keep pace with the competition . Directly copying one 's competitors dollar for dollar and message for message does have the potential for backfiring in the way of consumer confusion and diluted messages . Moreover , similar spending and messaging will not always guarantee that a firm is going to see the same results from its campaign and budget as its competition . However , a competitor 's budget goals and messaging strategy in a particular market can serve as a starting point for the firm 's advertising in the same or similar market . Using the competitive intelligence as a jumping off point , a firm can then see what type of messaging to allocate to its budget and what will be the most effective type of advertising to deliver that...