Chapter 11 Competitive Dynamics (Beating the Competition)

1. How to beat the competition
COMPETITIVE DYNAMICS
Arvin Toledo
Group 3
TS MARKMA R17
Ateneo Graduate School of Business

2. Ateneo Graduate School of Business
Outline:
Competitive dynamics includes…
1. Expanding and defending market share
2. Challenging market leaders
3. Picking the right strategy
4. Changing tactics
5. Adapting to the economy

3. Ateneo Graduate School of Business
1. How can market leaders expand the total market and defend market share?
Expand the market through:
• New customers
• More usage
• Additional opportunities to use the
brand
• New ways to use the brand

4. Ateneo Graduate School of Business
1. How can market leaders expand the total market and defend market share?
Defend market share with:
1. PROACTIVE MARKETING
2. DEFENSIVE MARKETING

5. Ateneo Graduate School of Business
1. How can market leaders expand the total market and defend market share?
Defend market share with:
1. PROACTIVE MARKETING
- shape market to own interests
- create new offers to serve unmet (unknown) market
needs

6. Ateneo Graduate School of Business
1. How can market leaders expand the total market and defend market share?
Defend market share with:
2. DEFENSIVE MARKETING
• Position – “pampers na Huggies”
• Flank – Jollibee & Mang Inasal
• Preemptive – SM
• Counteroffensive – Mang Inasal vs
ChickBoy
• Mobile – Alfamart

7. Ateneo Graduate School of Business
2. How should market challengers attack market leaders?
The bigger they are…
1. Frontal
2. Flank
3. Encirclement
4. Bypass
5. Guerilla

8. Ateneo Graduate School of Business
2. How should market challengers attack market leaders?
The bigger they are…
1. Frontal
-match opponent

9. Ateneo Graduate School of Business
2. How should market challengers attack market leaders?
The bigger they are…
2. Flank
-go for gaps,
Weak points

10. Ateneo Graduate School of Business
2. How should market challengers attack market leaders?
The bigger they are…
3. Encirclement
-offensive on several fonts

11. Ateneo Graduate School of Business
2. How should market challengers attack market leaders?
The bigger they are…
4. Bypass
-attack easier markets

12. Ateneo Graduate School of Business
2. How should market challengers attack market leaders?
The bigger they are…
5. Guerilla
-small, intermittent
attacks

13. Ateneo Graduate School of Business
3. How can market followers or nichers compete effectively?
To be or not to be?
1. Counterfeiter
-duplicates the product and sells
it as genuine

14. Ateneo Graduate School of Business
3. How can market followers or nichers compete effectively?
To be or not to be?
2. Cloner
-emulates the product with slight
variations

15. Ateneo Graduate School of Business
3. How can market followers or nichers compete effectively?
To be or not to be?
3. Imitator
-copies some but differentiates more

16. Ateneo Graduate School of Business
3. How can market followers or nichers compete effectively?
To be or not to be?
4. Adapter
-adapts or improves on the leader’s product

17. Ateneo Graduate School of Business
3. How can market followers or nichers compete effectively?
Your friendly neighborhood nicher…
-targets markets of little or no interest to the larger
firms
-knows their
customers well
-meets their needs
better and can
charge them higher

18. Ateneo Graduate School of Business
3. How can market followers or nichers compete effectively?
Your friendly neighborhood nicher…
Can be a:
-product specialist
-geographic specialist
-customer size specialist
Ex. AJE FARM Corp.

19. Ateneo Graduate School of Business
4. What marketing strategies are appropriate at each stage of the product life cycle?
Matching the block to the hole…
Product Life Cycle
1. Introduction – create product
awareness
2. Growth – maximize market
share
3. Maturity – maximize profit,
defend market share
4. Decline – reduce expense, milk product

20. Ateneo Graduate School of Business
4. What marketing strategies are appropriate at each stage of the product life cycle?
Matching the block to the hole…
1. Introduction
- Offer basic product
- Charge cost-plus
- Build selective distribution
- Build product awareness among early adaptors and
dealers

21. Ateneo Graduate School of Business
4. What marketing strategies are appropriate at each stage of the product life cycle?
Matching the block to the hole…
2. Growth
- Offer product extensions, service, warranty
- Price to penetrate market
- Build intensive distribution
- Build awareness in the mass market

22. Ateneo Graduate School of Business
4. What marketing strategies are appropriate at each stage of the product life cycle?
Matching the block to the hole…
3. Maturity
- Diversify brands and items models
- Price to match or best competitors’
- Build more intensive distribution
- Stress brand differences, encourage brand switching

23. Ateneo Graduate School of Business
4. What marketing strategies are appropriate at each stage of the product life cycle?
Matching the block to the hole…
4. Decline
- Phase out weak products
- Cut price
- Shut down unprofitable outlets
- Reduce to level to maintain loyalists

24. Ateneo Graduate School of Business
5. How should marketers adjust their strategies and tactics for an economic downturn or recession?
Survival of the Fittest
- Spend more (and wisely)
to earn more
- Know thy customer(s)
- Watch the budget
- The product is all that and more
- Fine-tune it, and then some

25. Ateneo Graduate School of Business
Summary:
To beat the competition you need to…
-Proactively expand
-Attack to defend market share
-Match strategy with resources
-Change tactics as needed
-Adapt to the economy/business
environment

26. How to beat the competition
COMPETITIVE DYNAMICS
Arvin Toledo
Group 3
TS MARKMA R17
Ateneo Graduate School of Business