1. Dealing with Competition11
Dealing with Competition
Marketing Management, 13th ed

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?
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3. Chapter Questions (cont.)
How should market challengers attack market leaders?
How can market followers or nichers compete effectively?
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4. Progressive Competes on Marketing Programs
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5. Figure 1.1 Five Forces Determining Segment Structural Attractiveness
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6. Identifying Competitors
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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
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8. Figure 11.2 Strategic Groups
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9. Figure 11.4 A Competitor’s Expansion Plans
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10. Table 11.1 Customer Ratings of Competitors on Key Success Factors
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11. Strengths and Weaknesses
Share of market
Share of mind
Share of heart
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12. 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
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13. Steps in Benchmarking (cont.)
Measure the company’s performance
Specify programs and actions to close the gap
Implement and monitor results
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14. Table 11.2 Market Share, Mind Share, and Heart Share
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15. Figure 11.5 Hypothetical Market Structure
10%
Market
Nichers
20%
Market
Follower
30%
Market
Challenger
40%
Market
Leader
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16. Gap Tried to Appeal to Too Broad a Market
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17. Expanding the Total Market
New customers
More usage
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18. Figure 11.6 Six Types of Defense Strategies
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19. Figure 11.7 Optimal Market Share
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20. 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
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21. Other Competitive Strategies
Market
Challengers
Market
Nichers
Market
Followers
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22. Market Challenger Strategies
Define the strategic objective and opponents
Choose a general attack strategy
Choose a specific attack strategy
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23. General Attack Strategies
Frontal Attack
Flank Attack
Encirclement
Attack
Bypass Attack
Guerrilla Warfare
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24. Pepsi buys Gatorade in a Bypass Strategy
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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
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26. Market Follower Strategies
Counterfeiter
Cloner
Imitator
Adapter
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27. Market Nicher Strategies
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28. 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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29. Balancing Orientations
Competitor-
Centered
Customer-
Centered
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30. Marketing Debate How do you attack a category leader? Take a position:
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.
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31. 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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