1. Dealing with Competition Marketing Management, 13 th ed 11

2. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 11-2 Chapter Questions (cont.) 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?

3. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 11-3 Chapter Questions (cont.) How should market challengers attack market leaders? How can market followers or nichers compete effectively?

4. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 11-4 Five Forces Determining Segment Structural Attractiveness Industry competitors Potential entrant Suppliers Buyers Substitutes

5. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 11-5 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

6. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 11-6 Strengths and Weaknesses Share of market Share of mind Share of heart

7. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 11-7 Steps in Benchmarking Determine which functions or processes to benchmark Identify the key performance variables to measure Identify the best-in-class companies Measure the performance of best-in- class companies

8. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 11-8 Steps in Benchmarking (cont.) Measure the company’s performance Specify programs and actions to close the gap Implement and monitor results

9. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 11-9 Expanding the Total Market New customers More usage

10. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 11-10 Six Types of Defense Strategies Defender Flank Preemptive Counteroffensive Mobile Contraction

11. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 11-11 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

12. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 11-12 Other Competitive Strategies Market challengers Market followers Market nichers

13. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 11-13 Market Challenger Strategies Define the strategic objective and opponents Choose a general attack strategy Choose a specific attack strategy

14. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 11-14 General Attack Strategies Frontal attack Flank attack Encirclement attack Bypass attack Guerilla warfare

15. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 11-15 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

16. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 11-16 Market Follower Strategies Counterfeiter Cloner Imitator Adapter

17. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 11-17 Niche Specialist Roles End-User Specialist Vertical-Level Specialist Customer-Size Specialist Specific-Customer Specialist Geographic Specialist Product-Line Specialist Job-Shop Specialist Quality-Price Specialist Service-Specialist Channel Specialist

18. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 11-18 Balancing Orientations Competitor-centered Customer-centered