11

Dealing with Competition

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?

2
Five Forces Determining Segment
Structural Attractiveness

3
Identifying Competitors

Competitor Myopia

4
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

5
Number of sellers and degree of
differentiation

Pure Monopoly

Oligopoly

Monopolistic Competition

Pure Competition

6
 • Market Concept of Competition

Competitor Map

7
Analyzing Competitors

 Strategies
 Objectives
 Strengths and Weaknesses

8
Customer Ratings of Competitors on Key
Success Factors

Customer Product Product Technical Selling

Awareness Quality Availability Assistance Staff
Competitor A E E P P G
Competitor B G G E G E
Competitor C F P G F F

Note : E - Excellent; G - Good; F – Fair; P - Poor

9
Considering Variables in Analyzing Competitors

Share of market

Share of mind

Share of heart
10
Market Share, Mind Share, and Heart Share

11
Selecting Competitors

 Strong versus Weak

 Close versus Distant
 Good versus Bad

12