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Dealing with Competition

Marketing Management, 13th 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?

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Chapter Questions (cont.)

How should market challengers attack market leaders? How can market followers or nichers compete effectively?

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Five Forces Determining Segment Structural Attractiveness Industry competitors Potential entrant Suppliers Buyers Substitutes

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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

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Strengths and Weaknesses

Share of market Share of mind Share of heart

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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

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Steps in Benchmarking (cont.)

Measure the companys performance Specify programs and actions to close the gap Implement and monitor results

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Expanding the Total Market

New customers More usage

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Six Types of Defense Strategies

Defender Flank Preemptive Counteroffensive Mobile Contraction

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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

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Other Competitive Strategies

Market challengers Market followers Market nichers

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Market Challenger Strategies

Define the strategic objective and opponents Choose a general attack strategy Choose a specific attack strategy

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General Attack Strategies

Frontal attack Flank attack Encirclement attack Bypass attack Guerilla warfare

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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

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Market Follower Strategies

Counterfeiter Cloner Imitator Adapter

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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

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Balancing Orientations
Competitor-centered Customer-centered

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