MKT 601 Chapter 12 Addressing Competition and Driving

MKT: 601 Chapter 12: Addressing Competition and Driving Growth

GROWTH STRATEGIES • Grow by Building Your Market Share • Grow through Developing Committed Customers and Stakeholders • Grow by Developing a Powerful Brand • Grow by Innovating New Products, Services, and Experiences • Grow by International Expansion • Grow by Mergers, Acquisitions, Alliances, and Joint Ventures • Grow by Building an Outstanding Reputation for Social Responsibility • Grow by Partnering with Government and NGOs

Competitive Strategies for Market Leader • • • EXPANDING TOTAL MARKET DEMAND NEW CUSTOMERS MORE USAGE Additional Opportunities to Use the Brand New Ways to Use the Brand PROTECTING MARKET SHARE PROACTIVE MARKETING A responsive marketer finds a stated need and fills it. An anticipative marketer looks ahead to needs customers may have in the near future. • A creative marketer discovers solutions customers did not ask for but to which they enthusiastically respond. Creative marketers are proactive market-driving firms, not just market driven ones • •

DEFENSIVE MARKETING • Position defense: Get a big position in consumer mind, like Unilever • Flank : Increase ad for current and can introduce lower price extension • Preemptive : Attack each and every competitors possible • Counteroffensive : Attack in competitors main ground • Mobile : Can move to other industry or focus on underlying general needs • Contraction : Move away from weak area and invest in strong area

Position defense: Get a big position in consumer mind, like Unilever Flank : Increase ad for current and can introduce lower price extension Preemptive : Attack each and every competitors possible Counteroffensive : Attack in competitors main ground Mobile : Can move to other industry or focus on underlying general needs Contraction : Move away from weak area and invest in strong area

INCREASING MARKET SHARE Factors to be considered before increasing share • The possibility of provoking antitrust action • Economic cost • Pursuing the wrong marketing-mix strategy • The effect of increased market share on actual and perceived quality

MARKET- CHALLENGER STRATEGIES DEFINING THE STRATEGIC OBJECTIVE AND OPPONENT(S) • It can attack the market leader. • It can attack firms of its own size that are not doing the job and are underfinanced. • It can attack small local and regional firms • It can attack the Status quo

CHOOSING A GENERAL ATTACK STRATEGIES • • • Frontal attack: Matching 4 P same with leaders Flank attack: Attack weak spots Encirclement attack: In each level Bypass attack: New geography or technology Guerrilla attack: Small intermittent attack

MARKET-FOLLOWER’S STRATEGIES • Cloner (Slight variation) • Imitator (Some strategy) • Adapter(improve)

• MARKETING STRATEGIES: INTRODUCTION STAGE AND THE PIONEER ADVANTAGE • PIONEERING ADVANTAGES • PIONEERING DRAWBACKS • GAINING A PIONEERING ADVANTAGE • • MARKETING STRATEGIES: GROWTH STAGE • MARKETING STRATEGIES: MATURITY STAGE • MARKET MODIFICATION • A company might try to expand the market for its mature brand by working with the two factors that make up sales volume: Volume = number of brand users × usage rate per user

PRODUCT MODIFICATION • Quality improvement increases functional performance by launching a “new and improved” product. • Feature improvement adds size, weight, materials, supplements, and accessories that expand the product’s performance, versatility, safety, or convenience. • Style improvement increases the product’s esthetic appeal.

MARKETING PROGRAM MODIFICATION • MARKETING STRATEGIES: DECLINE STAGE • Eliminating weak products • Harvesting and divesting • EVIDENCE FOR THE PRODUCT LIFE-CYCLE CONCEPT • CRITIQUE OF THE PRODUCT LIFE-CYCLE CONCEPT • MARKET EVOLUTION