McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved.

McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. Chapter Ten Strategies for Growth Markets

McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. Why Are Growing Markets Attractive? n Gaining share is easier n Share gains are worth more n Price competition is likely to be less intense n Early entry may be necessary to keep pace with technology

McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. Exhibit 10.3 Marketing Actions Vary for Different Share- Maintenance Objectives n Retain current customers by: n Maintaining or improving satisfaction and loyalty n Encouraging or simplifying repeat purchase n Reducing the attractiveness of switching n Stimulate selective demand among later adopters by: n Head-to-head positioning against competitors

McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. Exhibit 10.4 Strategic Choices for Share Leaders in Growth Markets COMPETITOR OR POTENTIAL COMPETITOR Contraction or strategic withdrawal Market expansion Flanker strategy - Proactive Flanker strategy - Reactive LEADER Fortress or position defense strategy Confrontation strategy Proactive Reactive Source: Adapted from P. Kotler and R. Singh Achrol, “Marketing Warfare in the 1980’s” Reprinted with permission from Journal of Business Strategy, Winter 1981, pp Copyright © 1981 by Warren, Gorham & Lambert, Inc., 210 South Street, Boston MA All rights reserved.

McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. Exhibit 10.6 Marketing Actions to Achieve Share Growth Vary for Different Marketing Objectives n Capture competitors’ customers by n Head-to-head positioning in competitor’s primary target market n Technological differentiation in primary target market n Stimulate selective demand among later adopters by n Head-to-head positioning in competitor’s primary target market (as above) n Differentiated positioning focused on untapped or underdeveloped segments

McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. Exhibit 10.7 Strategic Choices for Challengers in Growth Markets TARGET COMPETITOR Flanking attack Frontal attack Encirclement strategy Leapfrog strategy Source: Adapted from P. Kotler and R. Singh Achrol, “Marketing Warfare in the 1980’s” Reprinted with permission from Journal of Business Strategy, Winter 1981, pp Copyright © 1981 by Warren, Gorham & Lambert, Inc., 210 South Street, Boston MA All rights reserved. CHALLENGER