What term describes the strategy of competing for limited customer dollars?

The strategy of competing for limited customer dollars is best described by the term competitive aggression. This concept involves actively pursuing market share in a competitive environment where multiple companies are vying for the same pool of consumer spending. Businesses adopting this strategy focus on differentiating their products or services, pricing competitively, and employing promotional tactics to attract customers from their competitors.

In cases where customer spending is limited, companies need to adopt a more aggressive stance to secure sales. This might involve not only enhancing the value proposition but also directly targeting competitor customers to increase their own market share.

Other terms, such as market penetration, refer more to strategies to increase market share within an existing market rather than a focus on competing for limited dollars directly. Similarly, customer acquisition emphasizes the process of attracting new customers, which may not necessarily highlight the competitiveness in a context of limited financial resources. Market positioning focuses on the place a product occupies in consumers' minds, which is more about perception than the aggressive competition for funds.