Philip Kotler, Kevin Lane Keller-Marketing Management, 14th Edition-Prentice Hall (2012)

1. 11
Competitive Dynamics
1

2. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11-2
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?

3. Figure 11.1
Hypothetical
Market Structure
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11-3

4. Expanding the Total Market
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11-4

5. New Ways to Use a Brand
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11-5

6. Protecting Market Share
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11-6
Responsive anticipation
Creative anticipation

7. Figure 11.2 Types of
Defense Strategies
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11-7

8. Figure 11.3 The Concept of
Optimal Market Share
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11-8

9. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11-9
Market Challenger Strategies

Define the strategic objective and opponents

Choose a general attack strategy

Choose a specific attack strategy

10. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11-10
General Attack Strategies

Frontal attack

Flank attack

Encirclement attack

Bypass attack

Guerilla warfare

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
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11-11

12. Market Follower Strategies
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11-12

13. Market Nicher Strategies
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11-13

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
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11-14

15. Product Life Cycles
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11-15

16. Figure 11.4 Sales and
Profit Life Cycles
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11-16

17. Figure 11.5a
Common PLC Patterns:
Growth-Slump-Maturity
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11-17

18. Figure 11.5b
Common PLC Patterns:
Cycle-Recycle
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11-18

19. Figure 11.5c
Common PLC Patterns:
Scalloped
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11-19

20. Figure 11.6 Style, Fashion, and
Fad Life Cycles
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11-20

21. Maintaining a Market Advantage:
Trivial Pursuit
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11-21

22. Strategies for Developing a
Pioneer Advantage
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11-22

23. Growth Stage Strategies
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11-23

24. Electrolux
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11-24

25. Changing Brand Course
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11-25
Market Modification
Product Modification
Marketing Program
Modification

26. Decline

Declining sales

Low cost per customer

Declining profits

Laggards
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11-26

27. Marketing in an
Economic Downturn

Invest

Get close to
customers

Review budgets

Use a compelling
value proposition

Fine-tune offerings
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11-27

28. A Compelling Value Proposition
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11-28

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 11-29