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Dealing with Competition. To deal with competition, we must first
identify who they are, analyze and compare them against ...
There are two frameworks for identifying competitors. We can use the
Industry or Market frameworks. To use the Industry fr...
If we use the Market framework, then we simply ask ourselves: Who
else can satisfy the same customer need? This opens up t...
4
Both techniques are valid ways of coming up with competitors, the
idea is to make as long a list as possible of direct, an...
Now that you have a list of competitors, we want to analyze them.
There are three techniques here, using strategy groups, ...
The Strategy Group technique allows you to rank competitors on two
scales simultaneously. By graphing various attributes o...
Then we look at your competitor’s objectives. Are they after profits?
Market share? Cash flow? Or do they want to be a tec...
Then you want to gauge your strengths and weaknesses relative to
your competitors. How’s your quality perceived? How about...
Set a survey and ask your customers, your suppliers and distributors.
How well does your company perform against your comp...
Now that you have studied the competition and how you compare
against them, it is time to set a strategy. If your firm wan...
To expand the total market, or to make the pie bigger, your only
options are to attract more customers, or create more usa...
Of course, to stay #1, you don’t want to lose your current market
share. You must stay ahead of your competitors to do so....
Finally, you may want to increase your market share to become
number 1. But this will come at a cost. To get more of the s...
How you pair these three strategies is guided by who you are in the
market. There are four groups in every field. Leaders,...
If you are a leader, you may want to simply protect market share and
work to expand the total market. If you are Nokia, yo...
If you are a follower, then you are after the coat tails of existing giants.
Retaining market share and undercutting the l...
A challenger is most definitely after the competitor’s pie. They can do
this by pecking on their rival’s weaknesses. They ...
Finally, a nicher is most interested in peripheral pies. By becoming a
specialist, they capture specific customer segments...
No matter who you, who your competitors are or what strategies you
undertake, you must remember always, to keep an eye on ...
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Marketing - Dealing With Competition

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Kotler and Keller's framework for dealing with competition summarized in 5 min Ignite presentation format.

Published in: Business
  • Great presentation. We like to highlight our competitors' strengths then show how our product overcomes some of their weaknesses- here's a post on our blog about our strategy- http://matchist.com/blog/praise-your-competition-to-win-clients/
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  • cool info
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Marketing - Dealing With Competition

  1. 1. Dealing with Competition. To deal with competition, we must first identify who they are, analyze and compare them against ourselves, then strategize ways in handling them. Today I will step through the Kotler and Keller methods for identifying, analyzing and strategizing when it comes to competition. 1
  2. 2. There are two frameworks for identifying competitors. We can use the Industry or Market frameworks. To use the Industry framework, we ask ourselves, who else differentiates like me? Who has entry and exit barriers like me? Who has vertical integration like me? Who is as global or as local as me? And who has cost structures like me? Notice that “Like me” is a key component to look for. 2
  3. 3. If we use the Market framework, then we simply ask ourselves: Who else can satisfy the same customer need? This opens up the playing field to both direct and very indirect competitors. Pepsi Co’s bottled water division doesn’t just identify CocaCola as their competitor. Tap water is in fact their largest competitor because it is after the same customer need. 3
  4. 4. 4
  5. 5. Both techniques are valid ways of coming up with competitors, the idea is to make as long a list as possible of direct, and indirect competitors. Then we can move on to the analysis phase. 5
  6. 6. Now that you have a list of competitors, we want to analyze them. There are three techniques here, using strategy groups, understanding the competitor’s objectives, and understanding their strengths & weaknesses. These techniques guide your research into understanding of your competitors. 6
  7. 7. The Strategy Group technique allows you to rank competitors on two scales simultaneously. By graphing various attributes on axis, such as quality versus vertical integration, or price versus service, you can bucket your competitors into similar groups. This gives you a framework for viewing the various groups. The idea is to look for patterns and groupings. 7
  8. 8. Then we look at your competitor’s objectives. Are they after profits? Market share? Cash flow? Or do they want to be a technology or service leader in that sector? The important thing here is to get inside their heads. What is motivating them? Knowing their motives makes you more agile in your response. Treating a competitor who is after profits is very different than one who is after market share. 8
  9. 9. Then you want to gauge your strengths and weaknesses relative to your competitors. How’s your quality perceived? How about the customer experience? Do they know or recognize your brand? And are you too expensive? Or too cheap? You must find this information through research. 9
  10. 10. Set a survey and ask your customers, your suppliers and distributors. How well does your company perform against your competitors. Understand where you stand against your competitors in share of market, share of mind and share of heart. And finally, figure out the metrics that your best competitors are using to gauge success, and set those metrics up for yourself as benchmarks. 10
  11. 11. Now that you have studied the competition and how you compare against them, it is time to set a strategy. If your firm wants to be number one on the market, there are three ways to do it. By expanding total market, by protecting market share, or by increasing market share. 11
  12. 12. To expand the total market, or to make the pie bigger, your only options are to attract more customers, or create more usage with the existing customers. You might start adapting your products and advertising towards a new segment of customers. Or you might, like Brita, put a expiry indicator on your product to encourage more frequent replacement, more purchases of your product. 12
  13. 13. Of course, to stay #1, you don’t want to lose your current market share. You must stay ahead of your competitors to do so. Which means innovate innovate innovate. This means innovation not just in products, but also in services, delivery and product line coverage. You might add higher end and lower end into a product line to capture the flank businesses. You might tighten the logistics to deliver lower cost or faster delivery. When it comes to innovation, look beyond your base product and at the entire package solution. 13
  14. 14. Finally, you may want to increase your market share to become number 1. But this will come at a cost. To get more of the same existing pie, you must offer a lower cost or more at the same price to steal customers away from your competitors. So you must decide where your optimal profitability vs Market share lies. You certainly don’t want to enter a price war situation, driving down profits for the entire market. 14
  15. 15. How you pair these three strategies is guided by who you are in the market. There are four groups in every field. Leaders, followers, challengers and nichers. Understand where your company fits is important in choosing what strategy to use. 15
  16. 16. If you are a leader, you may want to simply protect market share and work to expand the total market. If you are Nokia, you own so much of the market that stealing market share becomes less appealing than expanding the total market. 16
  17. 17. If you are a follower, then you are after the coat tails of existing giants. Retaining market share and undercutting the leader is your technique. You’re not there first, but you’re cheaper and sometimes better. Cell phone manufacturer HTC started out as a follower. 17
  18. 18. A challenger is most definitely after the competitor’s pie. They can do this by pecking on their rival’s weaknesses. They can buying out some competitors to expand their customer list and product lines. They can undercut by hosting sales and blitzes. They can even leapfrog by acquiring next generation technologies to out-innovate a competitor. 18
  19. 19. Finally, a nicher is most interested in peripheral pies. By becoming a specialist, they capture specific customer segments so thoroughly that no one can touch them. Profit margins are high, but volume will remain low. Think of your local favorite family owned restaurant, that’s a location specialist. A customer prototype shop would be both a job-shop and location specialist. Your local bike store might be a service specialist. 19
  20. 20. No matter who you, who your competitors are or what strategies you undertake, you must remember always, to keep an eye on the competitors, but to focus on customers. No matter the tactics used against your competitors, at the end of the day you are striving to win customers. Therefore, focusing on customers is the only way to truly win. 20

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