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MARKETING MANAGEMENT 12th edition
11 Dealing with Competition Kotler Keller
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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?
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Competition in the Jeans Market
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Figure 1.1 Five Forces Determining Segment Structural Attractiveness
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Identifying Competitors
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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
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Industry Concept of Competition
Pure Monopoly Oligopoly Monopolistic Competition Pure Competition
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Figure 11.2 Competitor Map
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Figure 11.4 A Competitor’s Expansion Plans
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Analyzing Competitors
Share of market Share of mind Share of heart
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Table 11.2
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Figure 11.5 Hypothetical Market Structure
10% Market Nichers 20% Market Follower 30% Market Challenger 40% Market Leader
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Expanding the Total Market
New customers More usage
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Figure 11.6 Six Types of Defense Strategies
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Figure 11.7 Optimal Market Share
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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
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Other Competitive Strategies
Market Challengers Market Nichers Market Followers
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Market Challenger Strategies
Define the strategic objective and opponents Choose a general attack strategy Choose a specific attack strategy
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General Attack Strategies
Frontal Attack Flank Attack Encirclement Attack Bypass Attack Guerrilla Warfare
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Pepsi buys Gatorade in a Bypass Strategy
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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
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Samsung Attacks Using Innovation
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Market Follower Strategies
Counterfeiter Cloner Imitator Adapter
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Market Nicher Strategies
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Balancing Orientations
Competitor- Centered Customer- Centered
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Marketing Debate How do you attack a Category Leader? Take a position:
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.
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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?
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