11 Dealing with Competition Marketing Management 13 th

11 Dealing with Competition Marketing Management, 13 th ed

Chapter Questions (cont. ) • How do marketers identify primary competitors? • How should we analyze competitors’ strategies, objectives, strengths, and weaknesses? • How can market leaders expand the total market and defend market share? Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 11 -2

Chapter Questions (cont. ) • How should market challengers attack market leaders? • How can market followers or nichers compete effectively? Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 11 -3

Five Forces Determining Segment Structural Attractiveness • • • Industry competitors Potential entrant Suppliers Buyers Substitutes Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 11 -4

Industry Concept of Competition • Number of sellers and degree of differentiation • Entry, mobility, and exit barriers • Cost structure • Degree of vertical integration • Degree of globalization Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 11 -5

Strengths and Weaknesses • Share of market • Share of mind • Share of heart Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 11 -6

Steps in Benchmarking • Determine which functions or processes to benchmark • Identify the key performance variables to measure • Identify the best-in-class companies • Measure the performance of best-inclass companies Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 11 -7

Steps in Benchmarking (cont. ) • Measure the company’s performance • Specify programs and actions to close the gap • Implement and monitor results Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 11 -8

Expanding the Total Market • New customers • More usage Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 11 -9

Six Types of Defense Strategies • • • Defender Flank Preemptive Counteroffensive Mobile Contraction Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 11 -10

Factors Relevant to Pursuing Increased Market Share • Possibility of provoking antitrust action • Economic cost • Pursuing the wrong marketing-mix strategy • The effect of increased market share on actual and perceived quality Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 11 -11

Other Competitive Strategies • Market challengers • Market followers • Market nichers Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 11 -12

Market Challenger Strategies • Define the strategic objective and opponents • Choose a general attack strategy • Choose a specific attack strategy Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 11 -13

General Attack Strategies • • • Frontal attack Flank attack Encirclement attack Bypass attack Guerilla warfare Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 11 -14

Specific Attack Strategies • • • Price discounts Lower-priced goods Value-priced goods Prestige goods Product proliferation Product innovation • Improved services • Distribution innovation • Manufacturing-cost reduction • Intensive advertising promotion Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 11 -15

Market Follower Strategies • • Counterfeiter Cloner Imitator Adapter Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 11 -16

Niche Specialist Roles • End-User Specialist • Vertical-Level Specialist • Customer-Size Specialist • Specific-Customer Specialist • Geographic Specialist • Product-Line Specialist • Job-Shop Specialist • Quality-Price Specialist • Service-Specialist • Channel Specialist Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 11 -17

Balancing Orientations • Competitor-centered • Customer-centered Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 11 -18