MARKETING MANAGEMENT 12 th edition 11 Dealing with

MARKETING MANAGEMENT 12 th edition 11 Dealing with Competition Kotler Keller

Chapter Questions n n n 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? How should market challengers attack market leaders? How can market followers or nichers compete effectively? 2

Figure 1. 1 Five Forces Determining Segment Structural Attractiveness Potential entrants n Suppliers n Buyers n Industry competitors n Substitutes n 3

Industry Concept of Competition Number of sellers and degree of differentiation n Entry, mobility, and exit barriers n Cost structure n Degree of vertical integration n Degree of globalization n 4

Industry Concept of Competition Pure monopoly n Oligopoly n Monopolistic competition n Pure competition n 5

Analyzing Competitors Share of market n Share of mind n Share of heart n 6

Expanding the Total Market New customers n More usage n 7

Figure 11. 6 Six Types of Defense Strategies Defender n Flank n Preemptive n Counteroffensive n Mobile n Contraction n 8

Factors Relevant to Pursuing Increased Market Share Possibility of provoking antitrust action n Economic cost n Pursuing the wrong marketing-mix strategy n The effect of increased market share on actual and perceived quality n 9

Other Competitive Strategies Market challengers n Market followers n Market nichers n 10

Market Challenger Strategies Define the strategic objective and opponents n Choose a general attack strategy n Choose a specific attack strategy n 11

General Attack Strategies Frontal attack n Flank attack n Encirclement attack n Bypass attack n Guerrilla warfare n 12

Specific Attack Strategies n n n Price discounts Lower-priced goods Value-priced goods Prestige goods Product proliferation n n Product innovation Improved services Distribution innovation Manufacturing-cost reduction Intensive advertising promotion 13

Market Follower Strategies Counterfeiter n Cloner n Imitator n Adaptor n 14

Balancing Orientations Competitor-centered n Customer-centered n 15