Strategies for Growth Markets

Why Are Growing Markets Attractive?

Gaining share is easier Share gains are worth more Price competition is likely to be less intense Early entry may be necessary to keep pace with technology

Exhibit 10.3

Marketing Actions Vary for Different ShareMaintenance Objectives

Retain current customers by:

Maintaining or improving satisfaction and loyalty Encouraging or simplifying repeat purchase Reducing the attractiveness of switching

Stimulate selective demand among later adopters by:

Head-to-head positioning against competitors

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Exhibit 9.4

Strategic Choices for Share Leaders in Growth Markets

Flanker strategy - Proactive Flanker strategy - Reactive

COMPETITOR OR POTENTIAL COMPETITOR

Confrontation strategy Proactive Reactive

Fortress or position defense strategy LEADER

Contraction or strategic withdrawal

Market expansion

Source: Adapted from P. Kotler and R. Singh Achrol, Marketing Warfare in the 1980s Reprinted with permission from Journal of Business Strategy, Winter 1981, pp. 30-41. Copyright 1981 by Warren, Gorham & Lambert, Inc., 210 South Street, Boston MA 02111. All rights reserved.

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Exhibit 10.6

Marketing Actions to Achieve Share Growth Vary for Different Marketing Objectives

Capture competitors customers by Head-to-head positioning in competitors primary target market Technological differentiation in primary target market Stimulate selective demand among later adopters by Head-to-head positioning in competitors primary target market (as above) Differentiated positioning focused on untapped or underdeveloped segments
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Exhibit 9.7

Strategic Choices for Challengers in Growth Markets

Leapfrog strategy Flanking attack

TARGET COMPETITOR

Frontal attack

CHALLENGER

Encirclement strategy
Source: Adapted from P. Kotler and R. Singh Achrol, Marketing Warfare in the 1980s Reprinted with permission from Journal of Business Strategy, Winter 1981, 10 pp. 30-41. Copyright 1981 by Warren, Gorham & Lambert, Inc., 210 South Street, Boston MA 02111. All rights reserved.

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Some Advice for Challengers

Differentiation is key for Challlengers
Better benefits Better service Lower price

Beware of competing on price, however, unless your costs really

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