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Marketing Managememnt 13Ed. Chapter 9

Phil Kotler, Kevin Keller

Marketing Managememnt 13Ed. Chapter 9

  1. 1. Dealing with Competition 9 Marketing Management A South Asian Perspective, 13th ed
  2. 2. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 9-2 Chapter Questions • How do marketers identify primary competitors? • How should we analyze competitors’ strategies, objectives, strengths, and weaknesses? • How can market leaders expand the total market and defend market share?
  3. 3. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 9-3 Chapter Questions (cont.) • How should market challengers attack market leaders? • How can market followers or nichers compete effectively?
  4. 4. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 9-4 Mobile service providers compete with each other through innovative marketing ideas
  5. 5. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 9-5 Figure 9.1 Five Forces Determining Segment Structural Attractiveness
  6. 6. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 9-6 Identifying Competitors
  7. 7. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 9-7 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
  8. 8. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 9-8 Figure 9.2 Strategic Groups
  9. 9. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 9-9 Figure 9.4 A Competitor’s Expansion Plans
  10. 10. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 9-10 Table 9.1 Customer Ratings of Competitors on Key Success Factors
  11. 11. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 9-11 Strengths and Weaknesses Share of market Share of mind Share of heart
  12. 12. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 9-12 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
  13. 13. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 9-13 Steps in Benchmarking (cont.) • Measure the company’s performance • Specify programs and actions to close the gap • Implement and monitor results
  14. 14. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 9-14 Fake brands in Rural Markets • Look-alike • Spell-alike • Duplicates
  15. 15. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 9-15 Figure 9.5 Hypothetical Market Structure 10% Market Nichers 20% Market Follower 30% Market Challenger 40% Market Leader
  16. 16. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 9-16 Gap Tried to Appeal to Too Broad a Market
  17. 17. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 9-17 Expanding the Total Market New customers More usage
  18. 18. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 9-18 Figure 9.6 Six Types of Defense Strategies
  19. 19. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 9-19 Figure 9.7 Optimal Market Share
  20. 20. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 9-20 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
  21. 21. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 9-21 Other Competitive Strategies Market Challengers Market Nichers Market Followers
  22. 22. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 9-22 Market Challenger Strategies • Define the strategic objective and opponents • Choose a general attack strategy • Choose a specific attack strategy
  23. 23. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 9-23 In Sri Lanka, Tapal has challenged Unilever to emerge as a serious competitor
  24. 24. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 9-24 General Attack Strategies Frontal Attack Encirclement Attack Bypass Attack Flank Attack Guerrilla Warfare
  25. 25. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 9-25 Pepsi buys Gatorade in a Bypass Strategy
  26. 26. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 9-26 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
  27. 27. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 9-27 Market Follower Strategies Counterfeiter Cloner Imitator Adapter
  28. 28. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 9-28 Market Nicher Strategies
  29. 29. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 9-29 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
  30. 30. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 9-30 Balancing Orientations Competitor- Centered Customer- Centered
  31. 31. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 9-31 Marketing Debate  How do you attack a category leader? Take a position: 1. The best way to challenge a leader is to attack its strengths. or 2. The best way to attack a leader is to avoid a head-on assault and to adopt a flanking strategy.
  32. 32. Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 9-32 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 principles described in this chapter?

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