Kotler Mm13e Media 11

8/3/2019 Kotler Mm13e Media 11

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Dealing

with Competition

Marketing Management, 13th ed

11


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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, 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 nicherscompete effectively?


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Progressive Competes on

Marketing Programs


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Figure 1.1 Five Forces Determining

Segment Structural Attractiveness


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Identifying Competitors


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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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Figure 11.2 Strategic Groups


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Figure 11.4 A Competitors

Expansion Plans


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Table 11.1 Customer Ratings of

Competitors on Key Success Factors


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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 variablesto 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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Table 11.2 Market Share,

Mind Share, and Heart Share


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Figure 11.5

Hypothetical Market Structure

10%

MarketNichers

20%

MarketFollower

30%

MarketChallenger

40%

MarketLeader


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Gap Tried to Appeal to

Too Broad a Market


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Expanding the Total Market

New customers

More usage


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Figure 11.6 Six Types of

Defense Strategies


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Figure 11.7

Optimal Market Share


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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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Other Competitive Strategies

Market

Challengers

Market

NichersMarketFollowers


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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

Encirclement

AttackBypass Attack

Flank Attack

Guerrilla Warfare


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Pepsi buys Gatorade in a

Bypass Strategy


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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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Market Nicher Strategies


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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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Balancing Orientations

Competitor-Centered

Customer-Centered


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Marketing Debate

How do you attack a category leader?

Take a position:

1. The best way to challenge a leader is toattack its strengths.

or

2. The best way to attack a leader isto avoid a head-on assault and to adopt

a flanking strategy.


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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 principlesdescribed in this chapter?

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Kotler Mm13e Media 11