MARKETING MANAGEMENT

Dealing with Competition

Kotler

Keller

Chapter Questions

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?
11-2

Figure 1.1 Five Forces Determining

Segment Structural Attractiveness
Potential entrants
Suppliers
Buyers
Industry competitors
Substitutes

11-3

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

11-4

Industry Concept of Competition

Pure monopoly
Oligopoly
Monopolistic competition
Pure competition

11-5

Analyzing Competitors
Share of market
Share of mind
Share of heart

11-6

HOW CAN MARKET

LEADERS EXPAND THE
TOTAL MARKET AND
DEFEND MARKET SHARE

ATTRACT NEW CUSTOMERS

MARKET PENETRATION
STRATEGY

MAGGI
NOODLES

NEW MARKET
SEGMENT STRATEGY
Yamaha
BikeERCED
ES ACLASS

NEW MARKET SEGMENT

STRATEGY
Initially Yamaha 100 only
Then introduced Yamaha
dhoom70
Now Yamaha 125

11-12

GEOGRAPHICAL
EXPANSION STRATEGY
A lot of
companies
have started
operations in
India as part
of their
geographical
expansion
strategy.

MORE USAGE

11-16

11-17

11-18

Figure 11.6 Six Types of Defense Strategies

11-19

11-20

11-21

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

11-22

Other Competitive Strategies

Market challengers
Market followers
Market nichers

11-23

Market Challenger Strategies

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

11-24

General Attack Strategies

Frontal attack
Flank attack
Encirclement attack
Bypass attack
Guerrilla warfare

11-25

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

11-26

Market Follower Strategies

Counterfeiter
Cloner
Imitator
Adaptor

11-27

Balancing Orientations
Competitor-centered
Customer-centered

11-28