Marketing Management

Fourth European Edition

PART 2
Capturing Marketing Insights

Chapter 9
Dealing with competition

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 Chapter 9 Learning objectives

1. How marketers identify primary customers

2. How to analyse competitors’ strategies,
objectives, strengths and weaknesses
3. How market leaders can expand the total market
and defend their market share
4. How market challengers should attack market
leaders
5. How market followers or nichers can compete
effectively

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 Identifying competitors

• Industry focus
• Market focus
• Market concept of competition

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 Analysing competitors

• Strategies
• Objectives
• Strengths and weaknesses
• Selecting competitors
• Selecting customers

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 Competitive strategies for market
leaders

• Expanding the market

– New customers
– More usage

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 Competitive strategies for market
leaders (Continued)

• Protecting market share

– Position defense
– Flank defense
– Pre-emptive defense
– Counter offensive defense
– Mobile defense
– Contraction defense

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 Other competitive strategies

• Market challenger strategies

– Defining the strategic objective and opponents
– Attack strategies
– Choosing a specific attack strategy

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 Other competitive strategies
(Continued)

• Market-challenger strategies
• Attack strategies
– Frontal attack
– Flank attack
– Encirclement attacks
– Bypass attack
– Guerrilla warfare

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 Other competitive strategies
(Continued)

• Market-follower strategies
– Counterfeiter
– Cloner
– Imitator
– Adapter

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 Other competitive strategies
(Continued)

• Market-nicher strategies
– Key task 1: creating a niche market
– Key task 2: expanding an existing niche market
– Key task 3: protecting an existing niche market

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 Balancing customer and competitor
orientations

• It is essential for businesses to get close to

customers and to keep a careful watch on
competition when developing their
positioning strategy

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 Competing in an economic
downturn

• Explore the upside of increasing investment

• Get closer to customers
• Review budget allocations
• Put forth the most compelling value
proposition
• Fine-tune brand and product offerings

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