Competitive Dynamics Marketing Management

1. HOW CAN MARKET FOLLOWERS OR
NICHERS COMPETE EFFECTIVELY

2. MARKET-
FOLLOWER
STRATEGIES
MarketLeaders
Innovator bears the
expense of
developing a new
product, getting
distribution,
educating the market
Reward for work and
risk- market
leadership
MarketFollowers
Copy or improve the
new product
Achieves high profit
because no
innovation cost
ShivamVerma || IIT Delhi

3. MARKET-
FOLLOWER
STRATEGIES
ShivamVerma || IIT Delhi

4. MARKET-
NICHER
STRATEGIES
 Leader in a small market
 Large profitable firms also use niching strategies
 ROI in smaller markets > larger markets
 Nicher achieves high margin, mass marketer achieves high volume
ShivamVerma || IIT Delhi

5. MARKET-
NICHER
STRATEGIES
Protecting
niches
Expanding
niches
Creating
niches
• High risk of drying up
• Can weaken the firm => continually create new ones
• Multiple niching
• Entrants should focus at niches initially
ShivamVerma || IIT Delhi

6. MARKET-
NICHER
STRATEGIES
ShivamVerma || IIT Delhi

7. CREDITS
All Photos are taken from google images and Book on ‘Marketing
Management’ by Kotler
ShivamVerma || IIT Delhi

8. THANKYOU
ShivamVerma || IIT Delhi