1588462959-ch-11-competitive-dynamics.ppt

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11-2
Chapter Questions
 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?
 What marketing strategies are appropriate at
each stage of the product life cycle?
 How should marketers adjust their strategies
and tactics for an economic downturn or
recession?

Figure 11.1
Hypothetical
Market Structure

Expanding the Total Market

New Ways to Use a Brand

Protecting Market Share
Responsive anticipation
Creative anticipation

Figure 11.2 Types of
Defense Strategies

Figure 11.3 The Concept of
Optimal Market Share

Market Challenger Strategies
 Define the strategic objective and opponents
 Choose a general attack strategy
 Choose a specific attack strategy

General Attack Strategies
 Frontal attack
 Flank attack
 Encirclement attack
 Bypass attack
 Guerilla warfare

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

Market Follower Strategies

Market Nicher Strategies

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

Product Life Cycles

Figure 11.4 Sales and
Profit Life Cycles

Figure 11.5a
Common PLC Patterns:
Growth-Slump-Maturity

Figure 11.5b
Cycle-Recycle

Figure 11.5c
Scalloped

Figure 11.6 Style, Fashion, and
Fad Life Cycles

Maintaining a Market Advantage:
Trivial Pursuit

Strategies for Developing a
Pioneer Advantage

Growth Stage Strategies

Electrolux

Changing Brand Course
Market Modification
Product Modification
Marketing Program
Modification

Decline
 Declining sales
 Low cost per customer
 Declining profits
 Laggards

Marketing in an
Economic Downturn
 Invest
 Get close to
customers
 Review budgets
 Use a compelling
value proposition
 Fine-tune offerings

A Compelling Value Proposition

For Review
 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?
 What marketing strategies are appropriate at
each stage of the product life cycle?
 How should marketers adjust their strategies
and tactics for an economic downturn or
recession?

1588462959-ch-11-competitive-dynamics.ppt

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