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Dealing

with Competition

Market ing Management, 13thed

11

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Chapter Questions (cont.)

How do marketers identify primarycompetitors?

How should we analyze competitors

strategies, objectives, strengths, andweaknesses?

How can market leaders expand the

total market and defend market share?

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Chapter Questions (cont.)

How should market challengers attack

market leaders?

How can market followers or nichers

compete effectively?

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Five Forces Determining Segment

Structural Attractiveness

Industry competitors

Potential entrant

Suppliers Buyers

Substitutes

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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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Strengths and Weaknesses

Share of market

Share of mind

Share of heart

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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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Steps in Benchmarking (cont.)

Measure the companys performance

Specify programs and actions to close

the gap

Implement and monitor results

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Expanding the Total Market

New customers

More usage

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Six Types of

Defense Strategies

Defender

Flank

Preemptive

Counteroffensive

Mobile

Contraction

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Factors Relevant to Pursuing

Increased Market Share

Possibility of provoking antitrust action

Economic cost

Pursuing the wrong marketing-mixstrategy

The effect of increased market share on

actual and perceived quality

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Other Competitive Strategies

Market challengers

Market followers

Market nichers

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Market Challenger Strategies

Define the strategic objective and

opponents

Choose a general attack strategy

Choose a specific attack strategy

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General Attack Strategies

Frontal attack

Flank attack

Encirclement attack Bypass attack

Guerilla warfare

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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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Market Follower Strategies

Counterfeiter

Cloner

Imitator Adapter

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Niche Specialist Roles

End-User Specialist

Vertical-Level

Specialist

Customer-SizeSpecialist

Specific-Customer

Specialist Geographic

Specialist

Product-Line

Specialist

Job-Shop Specialist

Quality-PriceSpecialist

Service-Specialist

Channel Specialist

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Balancing Orientations

Competitor-centered

Customer-centered