revised presentation on Chapter 11 of Marketing Management 14th Ed. by Philip Kotler and Kevin Lane Keller

1. Building Strong Brands
COMPETITIVE DYNAMICS
(Outwit, Outplay, Outlast)
Arvin Toledo
Group 3
TS MARKMA R17
Ateneo Graduate School of Business

2. Ateneo Graduate School of Business
Questions and Objective:
Competitive dynamics:
1. How can market leaders expand the total market
and defend market share?
2. How should market challengers attack market
leaders?
3. How can market followers or nichers compete
effectively?

3. Ateneo Graduate School of Business
Questions and Objective:
Competitive dynamics:
4. What marketing strategies are appropriate at each
stage of the product life cycle?
5. How should marketers adjust their strategies and
tactics for an economic downturn or recession?

4. Ateneo Graduate School of Business
Questions and Objective:
Competitive dynamics:
1. How do you stay #1?
2. How do you become #1?
3. How do you keep your ranking?
4. How do you finish strong?
5. How do you survive a hostile environment?

5. Ateneo Graduate School of Business
Outline:
Survival means…
1. Expanding
2. Attacking to defend
3. Matching strategy to resources
4. Changing tactics
5. Adapting to the environment

6. Ateneo Graduate School of Business
1. How can market leaders expand the total market and defend market share?
You can always have more:
• New customers
• More usage
• Additional opportunities to use the
brand
• New ways to use the brand

7. Ateneo Graduate School of Business
1. How can market leaders expand the total market and defend market share?
Defending by attacking:
1. PROACTIVE MARKETING
2. DEFENSIVE MARKETING

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

9. Ateneo Graduate School of Business
1. How can market leaders expand the total market and defend market share?
Defending by attacking:
2. DEFENSIVE MARKETING
• Position
• Flank
• Preemptive
• Counteroffensive
• Mobile
• Contraction

10. Ateneo Graduate School of Business
1. How can market leaders expand the total market and defend market share?
Defending by attacking:
2. DEFENSIVE MARKETING
• Position – “pampers na Huggies”

11. Ateneo Graduate School of Business
1. How can market leaders expand the total market and defend market share?
Defending by attacking:
2. DEFENSIVE MARKETING
• Flank – Jollibee & Mang Inasal

12. Ateneo Graduate School of Business
1. How can market leaders expand the total market and defend market share?
Defending by attacking:
2. DEFENSIVE MARKETING
• Preemptive – SM

13. Ateneo Graduate School of Business
1. How can market leaders expand the total market and defend market share?
Defending by attacking:
2. DEFENSIVE MARKETING
• Counteroffensive – Mang Inasal vs Chic-
Boy

14. Ateneo Graduate School of Business
1. How can market leaders expand the total market and defend market share?
Defending by attacking:
2. DEFENSIVE MARKETING
• Mobile – Alfamart

15. Ateneo Graduate School of Business
1. How can market leaders expand the total market and defend market share?
Defending by attacking:
2. DEFENSIVE MARKETING
• Contraction – Tropical Hut

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2. How should market challengers attack market leaders?
The bigger they are…
1. Frontal
2. Flank
3. Encirclement
4. Bypass
5. Guerilla

17. Ateneo Graduate School of Business
2. How should market challengers attack market leaders?
The bigger they are…
1. Frontal
-match opponent
(Chicken McDo
vs
Chicken Joy)

18. Ateneo Graduate School of Business
2. How should market challengers attack market leaders?
The bigger they are…
2. Flank
-go for gaps,
Weak points
(Mang Inasal’s
Unli-rice vs
Jollibee/other
fastfood)

19. Ateneo Graduate School of Business
2. How should market challengers attack market leaders?
The bigger they are…
3. Encirclement
-offensive on several fonts (Samsung vs Sony)

20. Ateneo Graduate School of Business
2. How should market challengers attack market leaders?
The bigger they are…
4. Bypass
-attack easier markets
(Smart vs Globe)
(prepaid vs postpaid)

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

22. 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

23. 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

24. 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

25. 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

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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

27. 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.

28. 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

29. 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

30. 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

31. 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

32. 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

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

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

35. Building Strong Brands
COMPETITIVE DYNAMICS
(Outwit, Outplay, Outlast)
Arvin Toledo
Group 3
TS MARKMA R17
Ateneo Graduate School of Business