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Dealing With Competition: Marketing Management

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1K views32 pages

Dealing With Competition: Marketing Management

Uploaded by

abhishekarkediya1
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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9

Dealing
with Competition

Marketing Management
A South Asian Perspective, 13th ed
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?

Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 9-2


Chapter Questions (cont.)

• How should market challengers attack


market leaders?
• How can market followers or nichers
compete effectively?

Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 9-3


Mobile service
providers
compete with
each other
through
innovative
marketing ideas

Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 9-4


Figure 9.1 Five Forces Determining
Segment Structural Attractiveness

Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 9-5


Identifying Competitors

Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 9-6


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

Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 9-7


Figure 9.2 Strategic Groups

Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 9-8


Figure 9.4 A Competitor’s
Expansion Plans

Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 9-9


Table 9.1 Customer Ratings of
Competitors on Key Success Factors

Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 9-10


Strengths and Weaknesses

Share of market

Share of mind

Share of heart

Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 9-11


Steps in Benchmarking

• Determine which functions or


processes to benchmark
• Identify the key performance variables
to measure
• Identify the best-in-class companies
• Measure the performance of best-in-
class companies

Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 9-12


Steps in Benchmarking (cont.)

• Measure the company’s performance


• Specify programs and actions to close
the gap
• Implement and monitor results

Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 9-13


Fake brands in Rural Markets

• Look-alike
• Spell-alike
• Duplicates

Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 9-14


Figure 9.5
Hypothetical Market Structure

10% 20% 30% 40%


Market Market Market Market
Nichers Follower Challenger Leader

Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 9-15


Gap Tried to Appeal to
Too Broad a Market

Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 9-16


Expanding the Total Market

New customers

More usage

Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 9-17


Figure 9.6 Six Types of
Defense Strategies

Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 9-18


Figure 9.7
Optimal Market Share

Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 9-19


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

Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 9-20


Other Competitive Strategies

Market
Challengers

Market Market
Followers Nichers

Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 9-21


Market Challenger Strategies

• Define the strategic objective and


opponents
• Choose a general attack strategy
• Choose a specific attack strategy

Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 9-22


In Sri Lanka, Tapal has challenged
Unilever to emerge as a serious
competitor

Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 9-23


General Attack Strategies

Frontal Attack Flank Attack

Encirclement
Bypass Attack
Attack

Guerrilla Warfare
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 9-24
Pepsi buys Gatorade in a
Bypass Strategy

Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 9-25


Specific Attack Strategies

• Price discounts • Improved services


• Lower-priced goods • Distribution
• Value-priced goods innovation
• Prestige goods • Manufacturing-cost
• reduction
Product proliferation
• Intensive advertising
• Product innovation
promotion

Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 9-26


Market Follower Strategies

Counterfeiter

Cloner

Imitator

Adapter

Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 9-27


Market Nicher Strategies

Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 9-28


Niche Specialist Roles

• End-User Specialist • Product-Line


• Vertical-Level Specialist
Specialist • Job-Shop Specialist
• Customer-Size • Quality-Price
Specialist Specialist
• Specific-Customer • Service-Specialist
Specialist • Channel Specialist
• Geographic
Specialist

Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 9-29


Balancing Orientations

Competitor- Customer-
Centered Centered

Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 9-30


Marketing Debate

 How do you attack a category leader?


Take a position:
1. The best way to challenge a leader is to
attack its strengths.
or
2. The best way to attack a leader is
to avoid a head-on assault and to adopt
a flanking strategy.

Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 9-31


Marketing Discussion

 Pick an industry.
 Classify firms according to the
four different roles they might play.
 How would you characterize the
nature of competition?
 Do the firms follow the principles
described in this chapter?

Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 9-32

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