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Marketing Management, 12/e
   A South Asian Perspective
                                 9
          Dealing with Competition




 Kotler                       Koshy
 Keller                       Jha
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?
   How should market challengers attack market
    leaders?
   How can market followers or nichers compete
    effectively?

                                       9-2
Figure 1.1 Five Forces Determining
Segment Structural Attractiveness

 Potential entrants
 Suppliers
 Buyers
 Industry competitors
 Substitutes




                                9-3
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



                                   9-4
Industry Concept of Competition

 Pure monopoly
 Oligopoly
 Monopolistic competition
 Pure competition




                             9-5
Analyzing Competitors
 Share of market
 Share of mind
 Share of heart




                        9-6
Expanding the Total Market
 New customers
 More usage




                       9-7
Figure 11.6 Six Types of
Defense Strategies
 Defender
 Flank
 Preemptive
 Counteroffensive
 Mobile
 Contraction



                           9-8
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

                                  9-9
Other Competitive Strategies
 Market challengers
 Market followers
 Market nichers




                       9-10
Market Challenger Strategies
 Define the strategic objective and
  opponents
 Choose a general attack strategy
 Choose a specific attack strategy




                                  9-11
General Attack Strategies
 Frontal attack
 Flank attack
 Encirclement attack
 Bypass attack
 Guerrilla warfare




                        9-12
Specific Attack Strategies

   Price discounts            Product innovation
   Lower-priced goods         Improved services
   Value-priced goods         Distribution innovation
   Prestige goods             Manufacturing-cost
   Product proliferation       reduction
                               Intensive advertising
                                promotion


                                          9-13
Market Follower Strategies
 Counterfeiter
 Cloner
 Imitator
 Adaptor




                       9-14
Balancing Orientations
 Competitor-centered
 Customer-centered




                         9-15

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Dealing with compitition

  • 1. Marketing Management, 12/e A South Asian Perspective 9 Dealing with Competition Kotler Koshy Keller Jha
  • 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?  How should market challengers attack market leaders?  How can market followers or nichers compete effectively? 9-2
  • 3. Figure 1.1 Five Forces Determining Segment Structural Attractiveness  Potential entrants  Suppliers  Buyers  Industry competitors  Substitutes 9-3
  • 4. 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 9-4
  • 5. Industry Concept of Competition  Pure monopoly  Oligopoly  Monopolistic competition  Pure competition 9-5
  • 6. Analyzing Competitors  Share of market  Share of mind  Share of heart 9-6
  • 7. Expanding the Total Market  New customers  More usage 9-7
  • 8. Figure 11.6 Six Types of Defense Strategies  Defender  Flank  Preemptive  Counteroffensive  Mobile  Contraction 9-8
  • 9. 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 9-9
  • 10. Other Competitive Strategies  Market challengers  Market followers  Market nichers 9-10
  • 11. Market Challenger Strategies  Define the strategic objective and opponents  Choose a general attack strategy  Choose a specific attack strategy 9-11
  • 12. General Attack Strategies  Frontal attack  Flank attack  Encirclement attack  Bypass attack  Guerrilla warfare 9-12
  • 13. Specific Attack Strategies  Price discounts  Product innovation  Lower-priced goods  Improved services  Value-priced goods  Distribution innovation  Prestige goods  Manufacturing-cost  Product proliferation reduction  Intensive advertising promotion 9-13
  • 14. Market Follower Strategies  Counterfeiter  Cloner  Imitator  Adaptor 9-14