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Dealing with Competition




         www.yourwebsite.com
Outline

• 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 defent market
  share?



            www.yourwebsite.com
Outline

• How should market challengers
  attack market leaders?
• How can market followers or
  nichers compete effectively?




            www.yourwebsite.com
5 Competitive Forces
                New entrant




   Buyers     Segment Rivalry   Suppliers




                Substitute




            www.yourwebsite.com
Industry Concept of Competition
    1.   # of sellers and degree of differentiation
    2.   Entry, Mobility and Exit Barriers
    3.   Cost Structure
    4.   Degree of Vertical Integration
    5.   Degree of Globalization




                  www.yourwebsite.com
Strategic Groups



h
i
g
h
                         narrow line
                         moderate line
quality
l
                                  full line
o                                        broad line
w


           Base on Vertical Integration

                       www.yourwebsite.com
Customer’s Rating of Competitor’s
on key Success factors
                                      Product
      Technical                       Availability
      Assistance
                                      Product
     Selling Staff                    quality

                                      Customer
                                      awareness




                www.yourwebsite.com
Strengths & Weaknesses

3 Variables
                 Share of market




 Share of mind                         Share of heart




                 www.yourwebsite.com
Hypothetical Market Structure




       www.yourwebsite.com
6 types of Defense Strategies




        www.yourwebsite.com
Optimal Market Share

Probability might fall




             www.yourwebsite.com
Other Competitive Strategies

     Market
     challengers

                    Market
                    Followers
                                Market
                                Nichers




         www.yourwebsite.com
Market Challengers
    Strategeties




             Choose a General Attack
Define
Strategic
                                Choose a Specific Attack
Objectives
and
Opponents


                   www.yourwebsite.com
General Attack Strategies
Frontal Attack

Flank Attack

Encirclement Attack

Bypass Attack

Guerrilla Attack


               www.yourwebsite.com
Specific Attack Strategies
                      Product             Product
                      Proliferation       Innovation


                                                          Improved
                                                          Services

Value
Priced                                                         Distribution
Goods                                                          innovation


  Value                     Prestige
  Priced                    Goods                                         Manufacturing
  Goods                                                                   cost reduction



                                                       advertising

           Price
           discount




                              www.yourwebsite.com
Market Follower Strategies

Counterfeiter

Cloner

Imitator

Adapter



            www.yourwebsite.com
Niche Specialist Roles

End user Specialist
Vertical level
Customer Size
Specific Customer
Geographic
Product line
Job-shop
Quality Price


            www.yourwebsite.com
Niche Specialist Roles

Service Specialist

Channel Specialist




            www.yourwebsite.com
Balancing
                      Competitive         Customer
                      Strategies for      and
                      Market              Competitor
                                          Orientation



Competitive
Forces


              Analyzing
              competitors        Other
                                 Competitive
                                 Strategies




                  www.yourwebsite.com
COMPETITIVE STRATEGIES        PLAYER as COMPETITION



                                                  Mind as Share of mind



Shoot as Market Challenger

                                             Heart as Share of heart




Pass as Market Nichers
                                                  Market as Share of Market




 Set Play as Market Followers
Crafting the Brand
Positioning
                     Jerold I. Saddi
                      May 3, 2012




   http://jeroldsaddi.blogspot.com/
Intro
a. What are the industry concepts of
   competition?
b. How to analyze competitors?
c. How to expand, protect and
   increase market share?
d. What are the other competitive
   strategies?




 http://jeroldsaddi.blogspot.com/
Industry Concept of
          Competition

No. of sellers and degree of
 differentiation
Entry, mobility, and exit barriers
Cost
Vertical integration
Globalization




   http://jeroldsaddi.blogspot.com/
Analyzing Competitors

2 tools on how to analyze competitors

1. Swot Analysis




2. Competitor Matrix



 http://jeroldsaddi.blogspot.com/
Strengths and Weaknesses

            …maybe attributed in buying
            a book.

                       Profit
Share of Market
                 Mine bomb
Share of Mind

Share of Heart
                         Shared
                         heart
      http://jeroldsaddi.blogspot.com/
Expanding Total Market
          Demand
a. Look for new customers




a. Increase product usage




 http://jeroldsaddi.blogspot.com/
Protecting Market Share

                           Shield


Continuous Innovation




Proactive Marketing



 http://jeroldsaddi.blogspot.com/
Defensive Marketing

                …like playing a softball…

a.   Position Defense
b.   Flank Defense
c.   Pre-emptive Defense
d.   Counteroffensive Defense
e.   Mobile Defense
f.   Contraction Defense




        http://jeroldsaddi.blogspot.com/
Increasing Market Share
             ..like buying a condom..
Factors that need to be considered:

1. The possibility of provoking antitrust
   action
                                        TRUST
                                        Condom
2. Economic cost




     http://jeroldsaddi.blogspot.com/
3. The danger of pursuing the wrong
   marketing activities



4. The effect of increased market
   share on actual and perceived
   quality




 http://jeroldsaddi.blogspot.com/
Other Competitive
         Strategies



a. Market Challenger
b. Market Followers
c. Market Nichers




 http://jeroldsaddi.blogspot.com/
Market Challengers
Strategies:

a. Define the strategic objective and
   opponent(s)
  i. Market Leader
  ii. Own size
  iii. Small local and regional firms




 http://jeroldsaddi.blogspot.com/
Choosing a General Attack Strategy

a.    Frontal Attack
b.    Flank Attack
c.    Encirclement Attack
d.    Bypass Attack
e.    Guerrilla Attacks




     http://jeroldsaddi.blogspot.com/
Market-Follower Strategies


a.    Counterfeiter
b.    Cloner
c.    Imitator
d.    Adapter




     http://jeroldsaddi.blogspot.com/
Summary

                      COMPETITOR
           SWOT
                        MATRIX


             Profit
           Mine bomb



                  Shared
                  heart
http://jeroldsaddi.blogspot.com/
Crafting the Brand
Positioning
                     Jerold I. Saddi
                      May 3, 2012




   http://jeroldsaddi.blogspot.com/

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Dealing with competition group 5 complete

  • 1. Dealing with Competition www.yourwebsite.com
  • 2. Outline • 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 defent market share? www.yourwebsite.com
  • 3. Outline • How should market challengers attack market leaders? • How can market followers or nichers compete effectively? www.yourwebsite.com
  • 4. 5 Competitive Forces New entrant Buyers Segment Rivalry Suppliers Substitute www.yourwebsite.com
  • 5. Industry Concept of Competition 1. # of sellers and degree of differentiation 2. Entry, Mobility and Exit Barriers 3. Cost Structure 4. Degree of Vertical Integration 5. Degree of Globalization www.yourwebsite.com
  • 6. Strategic Groups h i g h narrow line moderate line quality l full line o broad line w Base on Vertical Integration www.yourwebsite.com
  • 7. Customer’s Rating of Competitor’s on key Success factors Product Technical Availability Assistance Product Selling Staff quality Customer awareness www.yourwebsite.com
  • 8. Strengths & Weaknesses 3 Variables Share of market Share of mind Share of heart www.yourwebsite.com
  • 9. Hypothetical Market Structure www.yourwebsite.com
  • 10. 6 types of Defense Strategies www.yourwebsite.com
  • 11. Optimal Market Share Probability might fall www.yourwebsite.com
  • 12. Other Competitive Strategies Market challengers Market Followers Market Nichers www.yourwebsite.com
  • 13. Market Challengers Strategeties Choose a General Attack Define Strategic Choose a Specific Attack Objectives and Opponents www.yourwebsite.com
  • 14. General Attack Strategies Frontal Attack Flank Attack Encirclement Attack Bypass Attack Guerrilla Attack www.yourwebsite.com
  • 15. Specific Attack Strategies Product Product Proliferation Innovation Improved Services Value Priced Distribution Goods innovation Value Prestige Priced Goods Manufacturing Goods cost reduction advertising Price discount www.yourwebsite.com
  • 17. Niche Specialist Roles End user Specialist Vertical level Customer Size Specific Customer Geographic Product line Job-shop Quality Price www.yourwebsite.com
  • 18. Niche Specialist Roles Service Specialist Channel Specialist www.yourwebsite.com
  • 19. Balancing Competitive Customer Strategies for and Market Competitor Orientation Competitive Forces Analyzing competitors Other Competitive Strategies www.yourwebsite.com
  • 20. COMPETITIVE STRATEGIES PLAYER as COMPETITION Mind as Share of mind Shoot as Market Challenger Heart as Share of heart Pass as Market Nichers Market as Share of Market Set Play as Market Followers
  • 21. Crafting the Brand Positioning Jerold I. Saddi May 3, 2012 http://jeroldsaddi.blogspot.com/
  • 22. Intro a. What are the industry concepts of competition? b. How to analyze competitors? c. How to expand, protect and increase market share? d. What are the other competitive strategies? http://jeroldsaddi.blogspot.com/
  • 23. Industry Concept of Competition No. of sellers and degree of differentiation Entry, mobility, and exit barriers Cost Vertical integration Globalization http://jeroldsaddi.blogspot.com/
  • 24. Analyzing Competitors 2 tools on how to analyze competitors 1. Swot Analysis 2. Competitor Matrix http://jeroldsaddi.blogspot.com/
  • 25. Strengths and Weaknesses …maybe attributed in buying a book. Profit Share of Market Mine bomb Share of Mind Share of Heart Shared heart http://jeroldsaddi.blogspot.com/
  • 26. Expanding Total Market Demand a. Look for new customers a. Increase product usage http://jeroldsaddi.blogspot.com/
  • 27. Protecting Market Share Shield Continuous Innovation Proactive Marketing http://jeroldsaddi.blogspot.com/
  • 28. Defensive Marketing …like playing a softball… a. Position Defense b. Flank Defense c. Pre-emptive Defense d. Counteroffensive Defense e. Mobile Defense f. Contraction Defense http://jeroldsaddi.blogspot.com/
  • 29. Increasing Market Share ..like buying a condom.. Factors that need to be considered: 1. The possibility of provoking antitrust action TRUST Condom 2. Economic cost http://jeroldsaddi.blogspot.com/
  • 30. 3. The danger of pursuing the wrong marketing activities 4. The effect of increased market share on actual and perceived quality http://jeroldsaddi.blogspot.com/
  • 31. Other Competitive Strategies a. Market Challenger b. Market Followers c. Market Nichers http://jeroldsaddi.blogspot.com/
  • 32. Market Challengers Strategies: a. Define the strategic objective and opponent(s) i. Market Leader ii. Own size iii. Small local and regional firms http://jeroldsaddi.blogspot.com/
  • 33. Choosing a General Attack Strategy a. Frontal Attack b. Flank Attack c. Encirclement Attack d. Bypass Attack e. Guerrilla Attacks http://jeroldsaddi.blogspot.com/
  • 34. Market-Follower Strategies a. Counterfeiter b. Cloner c. Imitator d. Adapter http://jeroldsaddi.blogspot.com/
  • 35. Summary COMPETITOR SWOT MATRIX Profit Mine bomb Shared heart http://jeroldsaddi.blogspot.com/
  • 36. Crafting the Brand Positioning Jerold I. Saddi May 3, 2012 http://jeroldsaddi.blogspot.com/