competitive-based pricing: Competitive-based pricing occurs when a company sets a price for its good based on what competitors are selling a similar product for. In order to understand the sources of competitive advantage firms are using many tools to analyze their external (Porter’s 5 Forces, PEST analysis) and internal (Value Chain analysis, BCG Matrix) environments.One of such tools that analyze firm’s internal resources is VRIO analysis.

The author of this theory suggests that firm must be valuable, rare, imperfectly imitable and perfectly non sustainable. Vrio analysis for LEGO Friends Leveraging Competitive Advantage case study identified the four main attributes which helps the organization to gain a competitive advantages. p 243 Which of the following methods of determining a budget requires a from MARK 3339 at University of Houston Nevertheless companies employ the competitive parity method. 3. A ROI B arbitrary allocation C percentage of sales D competitive parity E from MKT 300 at DePaul University Competitive Parity Method: Competition is one of the powerful factors affecting marketing performance. But a wiser decision is not to ignore the competition but use this method in conjunction with the percentage-of-sales or other methods. VRIO is a business analysis framework that forms part of a firm's larger strategic scheme.

The method emphasizes on actual needs of the company. It is considered as a scientific method to set ad budget. Marketing never suggests to always keep parity with competitors however it suggests a … A) inconsistent competitive advantage B) sustained competitive advantage C) competitive parity D) competitive failure Multiple Choice Unlocking this quiz will decrease the balance by one, you will not be able to revert this action. The basic strategic process that any firm goes through begins with a vision statement, and continues on through objectives, internal & external analysis, strategic choices (both business-level and corporate-level), and strategic implementation. This method considers the competitors’ advertising activities and costs for setting advertising budget.