1. D Jobber, Principles and Practice of Marketing, © 2004 McGraw-Hill Principles and Practice of Marketing fourth edition DAVID JOBBER Chapter 19 Competitive Marketing Strategy

2. D Jobber, Principles and Practice of Marketing, © 2004 McGraw-Hill The strategic triangle CompanyCustomersCompetitors

3. D Jobber, Principles and Practice of Marketing, © 2004 McGraw-Hill Strategic thrust: the generic options Market penetration or expansion Existing New/related Products Markets ExistingNew/related Market development Product development Enter new markets

4. D Jobber, Principles and Practice of Marketing, © 2004 McGraw-Hill Defender Attack strategies 1. Frontal attack 2. Flanking attack 4. Bypass attack 3. Encirclement 5. Guerrilla attack Attacker

5. D Jobber, Principles and Practice of Marketing, © 2004 McGraw-Hill Some key European strategic alliances Electrolux-AEGHousehold appliances Maerk-P&OShipping services to Middle East Rolls-Royce-Pratt&WhitneyAero-engines GEC-AlstholmPower engineering Hoechst-Mitsubishi Disperse dyes Lufthana-United AirlinesAirlines Nestle-Baxter HealthcareClinical nutrition Nestle-General MillsReady to eat breakfast cereals Unilever-PepsiCoDevelop & distribute tea based products in USA Glaxo-RochePharmaceuticals Ford-GMCars Seagram-BartelsmannSell disks on-line Microsoft-BTComputer & telecommunications products CompaniesCompetitive area

6. D Jobber, Principles and Practice of Marketing, © 2004 McGraw-Hill Build objectives Attractive conditions Growth markets Exploitable competitive weakness Exploitable corporate strengths Adequate corporate resources Strategic focus Market expansion  New users  New uses  Increased frequency of use Winning market share  Product innovation  Distribution innovation  Promotional innovation  Penetration pricing  Competitor confrontation Merger or acquisition Forming strategic alliances

7. D Jobber, Principles and Practice of Marketing, © 2004 McGraw-Hill Defender Attack strategies 1 Position defence 2 Flanking defence 4 counteroffensive defence 3 Pre-emptive defence Attacker 6 Strategic withdrawal 5 Mobile defence

8. D Jobber, Principles and Practice of Marketing, © 2004 McGraw-Hill Hold objectives Attractive conditions Market leader in a mature or declining market Costs exceed benefits of building Strategic focus Monitoring the competition Confronting the competition

9. D Jobber, Principles and Practice of Marketing, © 2004 McGraw-Hill Niche objectives Attractive conditions Small budget Strong competitors dominating major segments Pockets existing for profitable operations Creating a competitive advantage Strategic focus Market segmentation Focused R&D Differentiation Thinking small

10. D Jobber, Principles and Practice of Marketing, © 2004 McGraw-Hill Harvest objectives Attractive conditions Market is mature or declining (dog products) In growth markets where costs of building or holding exceed the benefits (selected problem children) Care of loyal customers Future breadwinners exist Strategic focus Eliminate R&D expenditure Product reformulation Rationalise product line Cut market support Consider increasing price

11. D Jobber, Principles and Practice of Marketing, © 2004 McGraw-Hill Divest objectives Attractive conditions Loss-making products or business drain on resources Often low share in declining markets Costs of turnaround exceed benefits Removal will not significantly affect sales of other products Strategic focus Get out quickly: Minimise the costs