MARKETING MANAGEMENT 12 th edition 11 Dealing with Competition KotlerKeller

11-2 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?

11-3 Competition in the Jeans Market

11-4 Figure 1.1 Five Forces Determining Segment Structural Attractiveness

11-5 Identifying Competitors

11-6 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

11-7 Industry Concept of Competition Pure Monopoly Oligopoly Monopolistic Competition Pure Competition

11-8 Figure 11.2 Competitor Map

11-9 Figure 11.4 A Competitor’s Expansion Plans

11-10 Analyzing Competitors Share of market Share of mind Share of heart

11-11 Table 11.2

11-12 Figure 11.5 Hypothetical Market Structure 10% Market Nichers 20% Market Follower 30% Market Challenger 40% Market Leader

11-13 Expanding the Total Market New customers More usage

11-14 Figure 11.6 Six Types of Defense Strategies

11-15 Figure 11.7 Optimal Market Share

11-16 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

11-17 Other Competitive Strategies Market Challengers Market Nichers Market Followers

11-18 Market Challenger Strategies Define the strategic objective and opponents Choose a general attack strategy Choose a specific attack strategy

11-19 General Attack Strategies Frontal Attack Encirclement Attack Bypass Attack Flank Attack Guerrilla Warfare

11-20 Pepsi buys Gatorade in a Bypass Strategy

11-21 Specific Attack Strategies Price discounts Lower-priced goods Value-priced goods Prestige goods Product proliferation Product innovation Improved services Distribution innovation Manufacturing-cost reduction Intensive advertising promotion

11-22 Samsung Attacks Using Innovation

11-23 Market Follower Strategies Counterfeiter Cloner Imitator Adapter

11-24 Market Nicher Strategies

11-25 Balancing Orientations Competitor- Centered Customer- Centered

11-26 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. 2. The best way to attack a leader is to avoid a head-on assault and to adopt a flanking strategy.

11-27 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?