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Dealing with Competition Marketing Management, 13 th ed 11.

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Presentation on theme: "Dealing with Competition Marketing Management, 13 th ed 11."— Presentation transcript:

1 Dealing with Competition Marketing Management, 13 th ed 11

2 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 11-2 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?

3 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 11-3 Chapter Questions (cont.) How should market challengers attack market leaders? How can market followers or nichers compete effectively?

4 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 11-4 Progressive Competes on Marketing Programs

5 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 11-5 Figure 1.1 Five Forces Determining Segment Structural Attractiveness

6 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 11-6 Identifying Competitors

7 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 11-7 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

8 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 11-8 Figure 11.2 Strategic Groups

9 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 11-9 Figure 11.4 A Competitor’s Expansion Plans

10 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Table 11.1 Customer Ratings of Competitors on Key Success Factors

11 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Strengths and Weaknesses Share of market Share of mind Share of heart

12 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 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-in- class companies

13 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Steps in Benchmarking (cont.) Measure the company’s performance Specify programs and actions to close the gap Implement and monitor results

14 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Table 11.2 Market Share, Mind Share, and Heart Share

15 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Figure 11.5 Hypothetical Market Structure 10% Market Nichers 20% Market Follower 30% Market Challenger 40% Market Leader

16 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Gap Tried to Appeal to Too Broad a Market

17 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Expanding the Total Market New customers More usage

18 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Figure 11.6 Six Types of Defense Strategies

19 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Figure 11.7 Optimal Market Share

20 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 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

21 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Other Competitive Strategies Market Challengers Market Nichers Market Followers

22 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Market Challenger Strategies Define the strategic objective and opponents Choose a general attack strategy Choose a specific attack strategy

23 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall General Attack Strategies Frontal Attack Encirclement Attack Bypass Attack Flank Attack Guerrilla Warfare

24 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Pepsi buys Gatorade in a Bypass Strategy

25 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 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

26 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Market Follower Strategies Counterfeiter Cloner Imitator Adapter

27 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Market Nicher Strategies

28 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 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

29 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Balancing Orientations Competitor- Centered Customer- Centered

30 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Marketing Debate How do you attack a category leader? Take a position: 1.The best way to challenge a leader is to attack its strengths. or 2. The best way to attack a leader is to avoid a head-on assault and to adopt a flanking strategy.

31 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Marketing Discussion Pick an industry. Classify firms according to the four different roles they might play. How would you characterize the nature of competition? Do the firms follow the principles described in this chapter?


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