MKT: 601 Chapter 12: Addressing Competition and Driving Growth

GROWTH STRATEGIES Grow by Building Your Market Share Grow through Developing Committed Customers and Stakeholders Grow by Developing a Powerful Brand Grow by Innovating New Products, Services, and Experiences Grow by International Expansion Grow by Mergers, Acquisitions, Alliances, and Joint Ventures Grow by Building an Outstanding Reputation for Social Responsibility Grow by Partnering with Government and NGOs

Competitive Strategies for Market Leader EXPANDING TOTAL MARKET DEMAND NEW CUSTOMERS MORE USAGE Additional Opportunities to Use the Brand New Ways to Use the Brand PROTECTING MARKET SHARE PROACTIVE MARKETING A responsive marketer finds a stated need and fills it. An anticipative marketer looks ahead to needs customers may have in the near future. A creative marketer discovers solutions customers did not ask for but to which they enthusiastically respond. Creative marketers are proactive market-driving firms, not just market driven ones

DEFENSIVE MARKETING Position defense: Get a big position in consumer mind, like Unilever Flank : Increase ad for current and can introduce lower price extension Preemptive : Attack each and every competitors possible Counteroffensive : Attack in competitors main ground Mobile : Can move to other industry or focus on underlying general needs Contraction :Move away from weak area and invest in strong area

Position defense: Get a big position in consumer mind, like Unilever Flank : Increase ad for current and can introduce lower price extension Preemptive : Attack each and every competitors possible Counteroffensive : Attack in competitors main ground Mobile : Can move to other industry or focus on underlying general needs Contraction :Move away from weak area and invest in strong area

INCREASING MARKET SHARE Factors to be considered before increasing share The possibility of provoking antitrust action Economic cost Pursuing the wrong marketing-mix strategy The effect of increased market share on actual and perceived quality

It can attack the market leader. MARKET- CHALLENGER STRATEGIES DEFINING THE STRATEGIC OBJECTIVE AND OPPONENT(S) It can attack the market leader. It can attack firms of its own size that are not doing the job and are underfinanced. It can attack small local and regional firms It can attack the Status quo

CHOOSING A GENERAL ATTACK STRATEGIES Frontal attack: Matching 4P same with leaders Flank attack: Attack weak spots Encirclement attack: In each level Bypass attack: New geography or technology Guerrilla attack: Small intermittent attack

MARKET-FOLLOWER’S STRATEGIES Cloner (Slight variation) Imitator (Some strategy) Adapter(improve)

MARKETING STRATEGIES: INTRODUCTION STAGE AND THE PIONEER ADVANTAGE PIONEERING ADVANTAGES PIONEERING DRAWBACKS GAINING A PIONEERING ADVANTAGE   MARKETING STRATEGIES: GROWTH STAGE MARKETING STRATEGIES: MATURITY STAGE MARKET MODIFICATION A company might try to expand the market for its mature brand by working with the two factors that make up sales volume: Volume = number of brand users × usage rate per user

PRODUCT MODIFICATION Quality improvement increases functional performance by launching a “new and improved” product. Feature improvement adds size, weight, materials, supplements, and accessories that expand the product’s performance, versatility, safety, or convenience. Style improvement increases the product’s esthetic appeal.

MARKETING PROGRAM MODIFICATION MARKETING STRATEGIES: DECLINE STAGE Eliminating weak products Harvesting and divesting EVIDENCE FOR THE PRODUCT LIFE-CYCLE CONCEPT CRITIQUE OF THE PRODUCT LIFE-CYCLE CONCEPT MARKET EVOLUTION