This document discusses competitive dynamics and marketing strategies used by different types of market players. It outlines four main types: 1) Market leaders who focus on expanding the market, protecting market share, and increasing market share. 2) Market challengers who define strategic objectives and opponents, then choose general or specific attack strategies. 3) Market followers who emulate leaders through counterfeiting, cloning, imitation, or adaptation. 4) Market nichers who specialize in areas like end-users, vertical levels, customer sizes, locations, products, or channels. The document provides examples for each type of market player and strategy.

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COMPETETIVE DYNAMICS
( Strategies and Attacks )
Yamami B. Chan, MD, FPOGS, FPSUOG
Ateneo Graduate School of Business
CLDH
Building Strong Brands

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Who are the market players?
LEADER CHALLENGER
FOLLOWERNICHERS

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1. Market Leaders
2. Market Challengers
3. Market Followers
4. Market Nichers
Questions and Objectives:
Marketing strategies used by:

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1. Market Leaders: Expanding total market demand,
Protecting market share, Increasing market share
Outline:
Marketing strategies used by:

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2. Market Challengers: Defining strategic objective and
opponents, Choosing a general attack strategy, Choosing a
specific attack strategy
Outline:
Marketing strategies used by:

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3. Market Followers: Counterfeiter, Cloner, Imitator,
Adapter
Outline:
Marketing strategies used by:

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4. Market Nichers (Specialist): End-user, Vertical-level,
Customer-size, Specific-customer, Geographic, Product or
product line, Product-feature, Job-shop, Quality-price,
Service , Channel
Outline:
Marketing strategies used by:
CHEMOTHERAPY INFERTILITY OPHTHALMIC

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1a. Market leaders?
Expanding total market
demand
 New customers
 More usage
 Additional opportunities to use the brand
 New ways to use the brand

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1b. Market leaders?
Protecting Market Share
a. Proactive Marketing
 Responsive
 Anticipative
 Creative

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1b. Market leaders?
Protecting Market Share
b. Defensive Marketing
 Position
 Flank
 Preemptive
 Counteroffensive
 Mobile
 Contraction

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6 types of Defense Strategies

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1c. Market leaders?
Increasing Market Share
 The possibility of provoking anti-trust actions
 Economic cost
 The danger of pursuing the wrong marketing
activities
 The effect of increased market share on actual
and perceived quality

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1c. Market Leaders?
Increasing Market Share

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2a. Market Challengers?
Defining the Strategic Objective and
Opponent(s)
Whom to attack
 The market leader
 Firms its own size that are not doing the job and are
underfinanced
 Small, local, and regional firms

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2b. Market Challengers?
Choosing a General Attack Strategy
FRONTAL
GUERILLA
FLANK
ENCIRCLEMENT
BYPASS

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2c. Market Challengers?
Choosing a Specific Attack Strategy
Basis for attack:
Lower-priced or discounted products

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2c. Market Challengers?
Choosing a Specific Attack Strategy
Basis for attack:
Lower-priced or discounted products New or improved products and services

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2c. Market Challengers?
Choosing a Specific Attack Strategy
Basis for attack:
Lower-priced or discounted products New or improved products and services
A wider variety of offerings, and innovative distribution strategies

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3a. Market Follower?
Counterfeiter
 Counterfeiter - duplicates the leader’s product +
packages sells it on the black market through
disreputable dealers

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3b. Market Follower?
Cloner
 Cloner emulates the leader’s products, name, and
packing with slight variation

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3c. Market Follower?
Imitator
 Imitator copies some things from the leader but
differentiates on packaging, advertising, pricing, or
location

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3d. Market Follower?
Adapter
 Adapter takes leaders product and adapts or
improves them

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4a. Market Nicher
End-user specialist
 Specializes in one type of end user customer
Example:
INFERTILITY

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4b. Market Nicher
Vertical-level specialist
 Specializes at some vertical level of the production-
distribution value chain
Example:
ULTRASOUND MACHINE (2D, 3D, 4D)

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4c. Market Nicher
Customer-size specialist
 Concentrates on either small, medium-sized, or
large customers
Example:

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4d. Market Nicher
Specific-customer specialist
 Firm limits its selling to one or a few customers
Example:

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4e. Market Nicher
Geographic specialist
 Firm sells only in a certain locality, region, or area
of the world
Example:

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4f. Market Nicher
Product or product line
specialist
 Firms carries or produces only one product line or
product
Example:
OPHTHALMIC

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4g. Market Nicher
Product-feature specialist
 Firms specializes in producing a certain type of
product or product feature
Example:
ULTRASOUND MACHINE

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4h. Market Nicher
Job-shop specialist
 Firms customizes its products for individual
customers.
Example:

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4i. Market Nicher
Quality-price specialist
 The firm operates at low or high-quality ends of the
market.
Example:

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4j. Market Nicher
Service specialist
 The firm offers one or more services not available
at other firms.
Example:
IN VITRO FERTILIZATION

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4k. Market Nicher
Channel specialist
 The firm specializes in serving only one channel of
distribution.
Example:
ANESTHESIA MACHINE

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1. Market Leaders
2. Market Challengers
3. Market Followers
4. Market Nichers
Questions and Objectives:
Marketing strategies used by:

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1. Market leaders Expanding the market, Protecting
and increasing the market share
2. Market Challengers Define strategic objective and
opponents, Choose a specific or general attack
strategy
3. Market Followers Counterfeiter, Cloner, Imitator,
Adapter
4. Market Nichers End-user, Vertical-level, Customer-
size, Specific-customer, Geographical, Product or
product line, Product-feature, Job-shop, Quality-
price, Service, Channel
Summary
Marketing strategies used by:

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36
COMPETETIVE DYNAMICS
(Strategies and Attacks)
Yamami B. Chan, MD, FPOGS, FPSUOG
Ateneo Graduate School of Business
CLDH
Building Strong Brands