1. 1
11 Competitive Dynamics

2. Chapter Questions
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?
What marketing strategies are appropriate at each stage of the product life cycle?
How should marketers adjust their strategies and tactics for an economic downturn or recession?
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3. Figure 11.1 Hypothetical Market Structure
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4. Expanding the Total Market
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5. New Ways to Use a Brand
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6. Protecting Market Share
Responsive anticipation
Creative anticipation
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7. Figure 11.2 Types of Defense Strategies
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8. Figure 11.3 The Concept of Optimal Market Share
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9. Market Challenger Strategies
Define the strategic objective and opponents
Choose a general attack strategy
Choose a specific attack strategy
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10. General Attack Strategies
Frontal attack
Flank attack
Encirclement attack
Bypass attack
Guerilla warfare
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11. 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
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12. Market Follower Strategies
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13. Market Nicher Strategies
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14. 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
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15. Product Life Cycles
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16. Figure 11.4 Sales and Profit Life Cycles
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17. Figure 11.5a Common PLC Patterns: Growth-Slump-Maturity
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18. Figure 11.5b Common PLC Patterns: Cycle-Recycle
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19. Figure 11.5c Common PLC Patterns: Scalloped
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20. Figure 11.6 Style, Fashion, and Fad Life Cycles
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21. Maintaining a Market Advantage: Trivial Pursuit
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22. Strategies for Developing a Pioneer Advantage
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23. Growth Stage Strategies
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24. Electrolux
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25. Marketing Program Modification
Changing Brand Course
Market Modification
Product Modification
Marketing Program Modification
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26. Decline Declining sales Low cost per customer Declining profits
Laggards
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27. Marketing in an Economic Downturn
Invest
Get close to customers
Review budgets
Use a compelling value proposition
Fine-tune offerings
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28. A Compelling Value Proposition
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29. For Review
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?
What marketing strategies are appropriate at each stage of the product life cycle?
How should marketers adjust their strategies and tactics for an economic downturn or recession?
Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall