AMCA Lecture Three Competitive Marketing Strategy

MKTG 1265
Advanced Marketing Concepts and
Applications

Lecture Three
Competitive Marketing
Strategy

1
MKTG 1265 (AMCA)

Agenda
Competitor Analysis
Positioning Strategy
Application of Strategy Models in
Marketing
Porter’s Generic Strategies Model
Ansoff Matrix Model
Marketing Warfare Concepts
(for further reference): Blue Ocean
Strategy
3-2
MKTG 1265 (AMCA)

References:
Week 3 - Competetive Marketing Strategy

Kotler, P., Brown, L. Adam, S. and Armstrong, G., (2004) Marketing, 6th
Edition, Prentice Hall, Sydney, pp. 738-768. (Chapter 19, Sustainable
Competitive Advantage)

Porter, M.E. and Kramer, M.R. (2006). Strategy & Society: The Link
between Competitive Advantage and Corporate Social Responsibility,
Harvard Business Review, December, 78-92.

Cover the Kotler reading in detail; many concepts and
frameworks on competitive strategies are covered here.
The Porter article is also important.

5-3
MKTG 1265 (AMCA)

Competitor Analysis

Definition:
The process of identifying major
competitors, assessing their objectives,
strategies, strengths and weaknesses,
and selecting which competitors to
attack or avoid

3-4
MKTG 1265 (AMCA)

Evolving Company Orientations

3-5
MKTG 1265 (AMCA)

Competitor Oriented Company
A competitor-centered company is one that
spends most of its time tracking competitors’
moves and market shares and trying to find
strategies to counter them.

This approach has pluses and minuses.
On the positive side, the company develops a
fighter orientation.
On the negative side, the company becomes too
reactive.

3-6
MKTG 1265 (AMCA)

Customer Oriented Company

A customer-centered company focuses
more on customer developments in designing
its strategies.

Clearly, the customer-centered company is in
a better position to identify new opportunities
and set long-run strategies that make sense

3-7
MKTG 1265 (AMCA)

Market Oriented Company

In practice, today’s companies must be
market-centered companies, watching
both their customers and their
competitors.

But they must not let competitor
watching blind them to customer
focusing.

3-8
MKTG 1265 (AMCA)

Figure 19-7 of the Reading:

Figure 19-7 shows that companies have moved through
four orientations over the years.

In the first stage, they were product oriented, paying little
attention to either customers or competitors.
In the second stage, they became customer oriented and
started to pay attention to customers.
In the third stage, when they started to pay attention to
competitors, they became competitor oriented.
Today, companies need to be market oriented, paying
balanced attention to both customers and competitors.

3-9
MKTG 1265 (AMCA)

Competitor Analysis: the Six Stages Model
1. Who the competitors are
2. What the competitors’ objectives are
3. What their strategies are
4. What their strengths and
weaknesses are
5. What their reaction patterns are
6. Who to confront and how to avoid

3-10
MKTG 1265 (AMCA)

Steps in Analyzing Competitors

1 2 3

Identifying the Determining Identifying
company’s competitors’ competitors’
competitors objectives strategies

Assessing Selecting
Estimating
competitors’ competitors to
competitors’
strengths and attack and
reactions
weaknesses avoid
6 5 4

3-11 Source: Kotler
MKTG 1265 (AMCA)

1
Identifying Competitors
At the narrowest level, a company can define its
competitors as other companies offering similar
products and services to the same customers at
similar prices.
But companies actually face a much wider range
of competitors. The company might define
competitors as all firms making the same product
or class of products.
Finally, and still more broadly, competitors might
include all companies that compete for the same
consumer dollars

3-12
MKTG 1265 (AMCA)

Identifying the Competitors

Competitors could be
DIRECT (within the same industry
or market sector)
INDIRECT (competing for the
consumer dollar- substitutes)
LATENT (potential threats)

3-13
MKTG 1265 (AMCA)

Avoiding competitor myopia
Companies must avoid “competitor myopia.” A company is
more likely to be “buried” by its latent competitors than its current
ones.
Companies can identify their competitors from the industry point
of view. A company must understand the competitive patterns in
its industry if it hopes to be an effective “player” in that industry.
Companies can also identify competitors from a market point of
view. Here they define competitors as companies that are trying
to satisfy the same customer need or build relationships with the
same customer group.
In general, the market concept of competition opens the
company’s eyes to a broader set of actual and potential
competitors.

3-14
MKTG 1265 (AMCA)

2
Determining Competitors Objectives

Each competitor has a mix of objectives.
The company wants to know the relative importance
that a competitor places on current profitability,
market share growth, cash flow, technological
leadership, service leadership, and other goals.
Knowing a competitor’s mix of objectives reveals
whether the competitor is satisfied with its current
situation and how it might react to different
competitive actions.
A company must also monitor its competitors’
objectives for various segments.

3-15
MKTG 1265 (AMCA)

3
Identifying Competitors Strategies

The more that one firm’s strategy
resembles another firm’s strategy, the
more the two firms compete.
A strategic group is a group of firms in
an industry following the same or a
similar strategy in a given target market.

3-16
MKTG 1265 (AMCA)

Strategic Groups Model

A strategic group is a concept used in strategic
management that groups companies within an
industry that have similar business models or similar
combinations of strategies.
For example, the restaurant industry can be divided
into several strategic groups including fast-food and
fine-dining based on variables such as preparation
time, pricing, and presentation.
The number of groups within an industry and their
composition depends on the dimensions used to
define the groups.

3-17
MKTG 1265 (AMCA)

Some simplified versions of SGA
BANKS

AIRLINES

Extensive
International
Fleet Size Carriers

Budget
Limited

Carriers

Domestic Regional International
MKTG 1265 (AMCA)
Routes

Uses of the SG model

Helps identify who the most direct competitors
are and on what basis they compete.
Raises the question of how likely or possible it
is for another organization to move from one
strategic group to another.
Strategic Group mapping might also be used
to identify opportunities.
Can also help identify strategic problems

3-19
MKTG 1265 (AMCA)

Strategic Groups - Implications
Although competition is intense within a strategic
group, there is also rivalry between groups.
Some of the strategic groups may appeal to
overlapping customer segments.
Example budget versus full service airlines
The customers may not see much difference in
the offers of different groups.
Members of one strategic group might expand
into new strategy segments.
The company needs to look at all of the
dimensions that identify strategic groups within
the industry.
3-20
MKTG 1265 (AMCA)

Don’t confuse Strategic Groups Model with the
Market Positioning Model

May look the same
But SG model focuses more on the
scope of business operations and the
business model used (example think of
how Amazon.com operates versus
traditional book stores)
The Positioning Model (perceptual map)
is used in marketing to cluster different
competitors based on attributes
3-21
MKTG 1265 (AMCA)

4
Assessing Competitors Strengths and Weaknesses
Marketers need to assess each competitor’s
strengths and weaknesses carefully in order
to answer the critical question: What can our
competitors do?
As a first step, companies can gather data on
each competitor’s goals, strategies, and
performance over the last few years.
Companies normally learn about their
competitors’ strengths and weaknesses
through secondary data, personal experience,
and word of mouth.
3-22
MKTG 1265 (AMCA)

Assessing Competitors Strengths and Weaknesses

They can conduct primary marketing
research with customers, suppliers, and
dealers.
They can benchmark themselves
against other firms, comparing the
company’s products and processes to
those of competitors or leading firms in
other industries to find ways to improve
quality and performance.
3-23
MKTG 1265 (AMCA)

5
Estimating Competitors’ Reactions

What will our competitors do?
A competitor’s objectives, strategies, and strengths
and weaknesses go a long way toward explaining its
likely actions. They also suggest its likely reactions to
company moves such as price cuts, promotion
increases, or new-product introductions.
In addition, each competitor has a certain philosophy
of doing business, a certain internal culture and
guiding beliefs.
Each competitor reacts differently.

3-24
MKTG 1265 (AMCA)

6
Selecting Competitors To Attack and Avoid

Strong or Weak Competitors

Close or Distant Competitors

“Good” or “Bad” Competitors

3-25
MKTG 1265 (AMCA)

Strong or Weak Competitors

Most companies prefer to compete against
weak competitors. This requires fewer
resources and less time. But in the process,
the firm may gain little.
A useful tool for assessing competitor
strengths and weaknesses is customer value
analysis.
To analyze the profiles of different competitors
and compare it against the firm itself.

3-26
MKTG 1265 (AMCA)

An example of Competitor Profile Analysis

Key success factor Our company Competitor 1 Competitor 2
Innovativeness 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5

Financial strength 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5
Technical assistance to
customers 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5

Product quality 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5

Well-qualified workforce 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5
Access to international
distribution channels 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5

3-27
MKTG 1265 (AMCA)

Customer Value Analysis

The aim of customer value analysis is to
determine the benefits that target customer
value and how customers rate the relative
value of various competitors’ offers.
The key to gaining competitive advantage is
to take each customer segment and examine
how the company’s offer compares to that of
its major competitor

3-28
MKTG 1265 (AMCA)

Close or Distant Competitors

Most companies will compete with close
competitors—those that resemble them the
most—rather than distant competitors.

At the same time, the company may want to
avoid trying to “destroy” a close competitor

3-29
MKTG 1265 (AMCA)

Good or Bad Competitors
Is competition always bad?
The existence of competitors results in
several strategic benefits.
Competitors may help increase total demand.
They may share the costs of market and product
development and help to legitimize new
technologies.
They may serve less-attractive segments or lead to
more product differentiation.
They lower the antitrust risk and improve bargaining
power versus labor or regulators.

3-30
MKTG 1265 (AMCA)

Good or Bad Competitors

An industry often contains “good” competitors and
“bad” competitors.
Good competitors play by the rules of the industry.
Bad competitors break the rules. They try to buy
share rather than earn it, take large risks, and in
general shake up the industry.

The implication is that “good” competitors would like
to shape an industry that consists of only well-
behaved competitors.

3-31
MKTG 1265 (AMCA)

Finding Uncontested Market Spaces

Rather than competing head to head with
established competitors, many companies
seek out unoccupied positions in uncontested
market spaces.

They try to create products and services for
which there are no direct competitors.

Later we look at ‘Blue Ocean Strategy.’

3-32
MKTG 1265 (AMCA)

Competitor Intelligence System
The competitive intelligence system:
Identifies the vital types of competitive information
and the best sources of this information;
Continuously collects information from the field
and from published data;
Checks the information for validity and reliability,
interprets it, and organizes it in an appropriate
way;
Sends key information to relevant decision
makers and responds to inquiries from managers
about competitors.
3-33
MKTG 1265 (AMCA)

Models in Competitive Marketing
Strategy
1. Ansoff Matrix
2. Porter Generic Strategies
3. Marketing Warfare
4. Blue Ocean Strategy (optional but it
is the latest model out there)

34
MKTG 1265 (AMCA)

Which direction
Refers to long term decisions that the company
must take with regards to where it should compete
and what its product/service offer should be
Referred to as “product-market” scope
Use the Ansoff Matrix
Should know the meaning of each cell in the
matrix and how it can be applied specifically to
marketing.

3-35

© Strategy in Marketing (Pearson Asia 2009)

Marketing Implications of a Market
Penetration Strategy
• Overall strategy: to increase volume sales in existing
markets with existing product offers. The full extent of
the market is untapped- need to gain greater
penetration
• Segmentation/Targeting: Current users
• Product: no changes; stick to existing product lines
• Price: could use penetration pricing in orde37r to
increase sales volume
• Promotions: mainly on sales promotions; generally a
“push” strategy
• Place: increase distribution channels/ intermediaries in
order to widen availability of the product

LEC3-37


Marketing Implications of a Market
Development Strategy
• Overall strategy: to take existing products into new
markets (geographic, customer segments)
• Segmentation/Targeting: New users
• Product: no major changes but adaptation for new
user segment
• Price: use differential pricing for different segments
• Promotions: targeting at new audiences; possibly
reaching with different media and messages
• Place: use new distribution channels to reach new
segments. International marketing for geographic
market expansion
LEC3-38


Marketing Implications of a Product
Development Strategy

• Overall strategy: to launch new products and
innovations. Establish market leadership position
• Segmentation/Targeting: Innovators/ Early
adopters
• Product: Innovation (“first-in-market”)
• Price: Skim pricing
• Promotions: Creating awareness, educating
customers about new products
• Place: Selective distribution initially

3-39

LEC3-39


Apply this to Apple (examples)
Market Penetration: Product Development:

• Apple uses extensive •Introduction of innovative
promotions and pricing to new products (i-pods/ i-
increase demand for its Phone/ Macbook Air)
current rang of products •Updates of product range
• Cross selling of Apple (ipods+ Macbooks)
products

Market Development: Diversification:

•Expand into new country • Bold move into digital music
markets (i-Tunes)
•Appoint more distributors •Movies?
and resellers

3-40

An example of applying the Product Market
Expansion Grid (Malaysian Airlines)

Source: Kotler and da Silva (2006) Pearson Asia LEC3-41

Competitive Advantage

How do companies achieve competitive
advantages and how do they
operationalize these advantages in
marketing?

1-42
MKTG 1265 (AMCA)

Competitive Advantage
Definition:
An advantage over competitors gained by offering
consumers greater value, either through lower prices
or by providing more benefits that justify higher prices
Organizations might deliver more customer value than
their competitors by:
Offering lower prices
Providing more benefits, justifying higher prices
Offering specialist products and services
(more later when we cover Porter generic
strategies)

3-43
MKTG 1265 (AMCA)

Competitive Advantages in Marketing
Can exist in any or all aspects of the marketing
mix
1. Product : quality, functions, design, branding
2. Pricing: levels versus the competitors; sources of
cost advantages
3. Place: location, convenience, store image
4. Promotions: creativity, use of media, execution
(integrated MC)
5. People: Customer Service
6. Processes: Service Delivery Systems
3-44
MKTG 1265 (AMCA)

Basic Competitive Strategies
More than two decades ago, Michael Porter suggested
four basic competitive positioning strategies that
companies can follow—three winning strategies and one
losing one.
The winning strategies are:

Overall cost leadership: The company works hard to
achieve the lowest production and distribution costs.
Differentiation: The company concentrates on
creating a highly differentiated product line and
marketing program.
Focus: The company focuses on serving a few market
segments well rather than going after the whole market.
3-45
MKTG 1265 (AMCA)

The meaning of each strategy:

3-46


Marketing Implications of a Differentiation
Strategy

Overall strategy: to achieve superiority in all aspects
of marketing and business operations
Segmentation/Targeting: Quality/ Value seeking
customers
Product: Premium product; excellent service. Strong
brand equity
Price: Value based pricing; higher than competitors
Promotions: Creating product differentiation and
brand image
Place: Selective distribution
3-47


Marketing Implications of a Cost
Leadership Strategy
Overall strategy: to be the lowest cost player ni
the market
Segmentation/Targeting: Mass market; value
seeking customers
Product: Basic, functional, no-frills
Price: Penetration pricing
Promotions: Mass media advertising; sales
promotions to create push effect
Place: Intensive distribution
3-48


Marketing Implications of a Focus Strategy

Overall strategy: Become a specialist in a given
product market sector
Segmentation/Targeting: Niche market segments
Product: Specialist product line; deep assortment
but limited range
Price: Skim pricing
Promotions: Focused media
Place: Exclusive or selective distribution

3-49

Gaining Leadership Positions Through Delivering
Superior Value

More recently, a new classification of
competitive marketing strategies has been
offered. It is suggested companies gain
leadership positions by delivering superior
value to their customers.

Companies can pursue any of three
strategies—called value disciplines—for
delivering superior customer value.

3-50
MKTG 1265 (AMCA)

Value Disciplines:

Operational excellence: The company provides
superior value by leading its industry in price and
convenience.
Customer intimacy: The company provides superior
value by precisely segmenting its markets and tailoring
its products or services to match exactly the needs of
targeted customers.
Product leadership: The company provides superior
value by offering a continuous stream of leading-edge
products or services.

3-51
MKTG 1265 (AMCA)

“How aggressovely do we
compete?”

3-52
MKTG 1265 (AMCA)

Marketing Wars (‘battles for market share
and dominance or a market position)
Another way of studying marketing strategy is
to observe and track major marketing wars
between key competitors
What turf (battle-ground= Market) are they
fighting for?
How are they fighting? What are the differences
in the ways the rivals are competing?

3-53

Marketing is dynamic
Competitors will react against each other
The marketing mix becomes the weapons of
warfare
Battle terrain= Market Segments
Targeting and Positioning
Attack and Counter-Attack (“for every action
there opposite reaction”- physics law)
Competitive Posturing: adopt a stance-
leader, challenger, follower, nicher
3-54
MKTG 1265 (AMCA)

Competitive Positions

Firms competing in a given target market,
at any point in time, differ in their
objectives and resources.

1-55
MKTG 1265 (AMCA)

Strategic Positioning
Market Leaders
Focus on expanding total demand
Defending market share is important
May not wish to aggressively take more market share from rivals
Market Challengers
Concentrate on a single target. Attacking the leader
Market Followers
Compete with modest strategic objective
Often use innovative imitation
Compete in selective few segments
Market Nichers
Focus on narrow slice of the market

3-56
MKTG 1265 (AMCA)

Market Leader Strategies

Most industries contain an acknowledged market
leader. Competitors focus on the leader as a
company to challenge, imitate, or avoid.

To remain number one, leading firms can take any of
three actions.
1. They can find ways to expand total demand.
2. They can protect their current market share through
good defensive and offensive actions.
3. They can try to expand their market share further,
even if market size remains constant.

3-57
MKTG 1265 (AMCA)

Market Leaders
Strategies: Examples of marketing
strategies:
Superior customer knowledge
1.Expand total demand Long-term outlook
Product innovation
- New Users Total quality
- New uses Product flanking, multiple
brands, brand extension
- More usage Heavy advertising
Aggressive sales force
Effective Promotion
2.Defend market share Quick, effective competitive
response
Manufacturing efficiency
3.Expand market share Brand management system

3-58

Market Leader Strategy #1: Expanding Total
Demand

The leading firm normally gains the most when
the total market expands.
Market leaders can expand the market by
developing new users, new uses, and more
usage of its products.

MKTG 1265 (AMCA)

Market Leader Strategy#2: Protecting Market
Share
While trying to expand total market size, the leading firm also
must protect its current business against competitors’ attacks.

What can the market leader do to protect its position?
1. It must prevent or fix weaknesses that provide
opportunities for competitors.
2. It must always fulfill its value promise.
3. Its prices must remain consistent with the value that
customers see in the brand.
4. It must work to keep strong relationships with valued
customers.
5. It should “plug holes” so that competitors do not jump in.
The best defense is a good offense, and the best response is
continuous innovation.

MKTG 1265 (AMCA)

Market Leader Strategy#3:Expanding Market
Share
Studies have shown that, on average, profitability rises
with increasing market share.

Some studies have found that many industries contain one
or a few highly profitable large firms, several profitable and
more focused firms, and a large number of medium-sized
firms with poorer profit performance. It appears that
profitability increases as a business gains share relative to
competitors in its served market.

Companies must not think that gaining increased market
share will improve profitability automatically. Much
depends on their strategy for gaining increased share

MKTG 1265 (AMCA)

Defense Strategies

2
3 Pre-emptive Flanking
defence defence
1
Attacker Position 6
defence Strategic
withdrawal
4 counteroffensive
Defender
defence

5 Mobile defence

3-62
MKTG 1265 (AMCA)

Market Challenger Strategies
Firms that are second, third, or lower in an
industry are sometimes quite large.
These runner-up firms can adopt one of two
competitive strategies:
They can challenge the leader and other
competitors in an aggressive bid for more market
share (market challengers).
They can play along with competitors and not rock
the boat (market followers).
A market challenger must first define which
competitors to challenge and its strategic
objective.
3-63
MKTG 1265 (AMCA)

Market Challenger Strategies

The challenger can attack the market leader, a high-risk
but potentially high-gain strategy. Its goal might be to take
over market leadership. Or the challenger’s objective may
simply be to wrest more market share.
The challenger observes what has made the leader
successful and then improves up it. This is known as the
“second-mover advantage.”
Alternatively, the challenger can avoid the leader and
instead challenge firms its own size, or smaller local and
regional firms. These smaller firms may be underfinanced
and not serving their customers well. The challenger must
choose its opponents carefully and have

3-64
MKTG 1265 (AMCA)

How can the market challenger best attack the chosen
competitor and achieve its strategic objectives?

It may launch a full frontal attack, matching the
competitor’s product, advertising, price, and
distribution efforts. It attacks the competitor’s
strengths rather than its weaknesses.
Rather than challenging head-on, the challenger
can make an indirect attack on the competitor’s
weaknesses or on gaps in the competitor’s
market coverage

3-65
MKTG 1265 (AMCA)

Attack strategies

4. Bypass attack

2. Flanking attack 5.
Guerrilla
attack

Attacker 1. Frontal
Defender
attack

3. Encirclement

3-66
MKTG 1265 (AMCA)

Types of attack strategies
Types of attack strategy Marketing Examples
1. Frontal Attack Head on competition usually undertaken by
largest competitors who have the muscle
(resources) to engage in prolonged
promotion or price wars.
2. Flank Attack Attack the competition on its weakest spots
(example distribution) and take advantage of
this weakness to grab market share.
3. Encirclement Attack Attack the competition on multiple fronts
(using more than one aspect of the
marketing mix strategy).
4. Bypass Attack Plan to enter markets not currently
considered by competition; create “blue
ocean opportunities” – fight the next war.
6. Guerilla Attack Used by smaller competitors to attack by
surprise to upset strategies of larger rivals;
smaller competitor then withdraws to attack
3-67 another day.


Apple versus Samsung Phones
How do they compete?
Design?
Functionality (Apple has its own OS;
Samsung uses Windows Mobile)
Pricing: both are comparatively high
Promotions: Apple is stronger on WOM
and OL; Samsung uses media might
Place: Apple appointed Telcos;
Samsung uses wider distribution
network
3-68

Market Follower Strategies
Not all runner-up companies want to challenge the
market leader. Challenges are never taken lightly by
the leader.
A follower can gain many advantages.
The market leader often bears the huge expenses of
developing new products and markets, expanding
distribution, and educating the market.
By contrast, the market follower can learn from the
leader’s experience. It can copy or improve on the
leader’s products and programs, usually with much
less investment. Although the follower will probably
not overtake the leader, it often can be as profitable.

3-69
MKTG 1265 (AMCA)

Market Follower Strategies

Following is not the same as being passive or a
carbon copy of the leader.
Each follower tries to bring distinctive advantages
to its target market.
The follower is often a major target of attack by
challengers. Therefore, the market follower must
keep its manufacturing costs low and its product
quality and services high. It must also enter new
markets as they open up.

3-70
MKTG 1265 (AMCA)

Market Nicher Strategies
Almost every industry includes firms that specialize in serving
market niches. Instead of pursuing the whole market, or even
large segments, these firms target subsegments.
Nichers are often smaller firms with limited resources. But
smaller divisions of larger firms also may pursue niching
strategies.
Why is niching profitable? The main reason is that the market
nicher ends up knowing the target customer group so well that it
meets their needs better than other firms that casually sell to this
niche.
As a result, the nicher can charge a substantial markup over
costs because of the added value.
Whereas the mass marketer achieves high volume, the nicher
achieves high margins.

3-71
MKTG 1265 (AMCA)

Market Nicher Strategies

Nichers try to find one or more market niches that
are safe and profitable.
An ideal market niche is big enough to be
profitable and has growth potential.
Perhaps most important, the niche is of little
interest to major competitors.
The key idea in niching is specialization. A market
nicher can specialize along any of several market,
customer, product, or marketing mix lines.

3-72
MKTG 1265 (AMCA)

Risks of Market Nichers

Niching carries some major risks.
For example, the market niche may dry up, or it
might grow to the point that it attracts larger
competitors.

That is why many companies practice multiple
niching. By developing two or more niches, a
company increases its chances for survival.

3-73
MKTG 1265 (AMCA)

Blue Ocean Strategy

How to create uncontested
market space and make the
competition irrelevant……

3-74


Blue Ocean Strategy Implications
Don’t get stuck in markets
that are crowded (‘red
oceans’)
Redefine your market
Create new solutions and
business models for
meeting customer needs
See ahead to unmet needs
and make the competition
irrelevant

3-75
MKTG 1265 (AMCA)


Uses the concept of the “Strategy
Canvas”
High
Attribute Strength

The combination of attributes gives
an idea of the strategic profile of
the firm and its competitors
Low
#1 #2 #3 #4 #5 #6 #7 #8 #9 #10

Attributes
5-77
MKTG 1265 (AMCA)


Through competitive intelligence and marketing
research you profile the strategy of your main
competitor/s

Competitor A
Attribute Strength

Competitor B

Competitor C

#1 #2 #3 #4 #5 #6 #7 #8 #9 #10

Attributes
5-78
MKTG 1265 (AMCA)


There is a bunching and a very clear “Red Ocean”
Scenario
“What should you do now?
“What should you do now?
Seek opportunities in
Seek opportunities in
Competitor A market areas not tapped
market areas not tapped
by the rivals
by the rivals
Sometimes you need to
Attribute Strength

Competitor B Sometimes you need to
reinvent the product offer
reinvent the product offer
and service delivery
and service delivery
system
system

Competitor C

#1 #2 #3 #4 #5 #6 #7 #8 #9 #10

Attributes
5-79
MKTG 1265 (AMCA)


Blue Ocean Strategy: Create a New Value Curve

Competitor A
Attribute Strength

Competitor B

Competitor C

#1 #2 #3 #4 #5 #6 #7 #8 #9 #10

Attributes
5-80
MKTG 1265 (AMCA)

The budget airline market

Blue Ocean market space for budget airlines
3-81
MKTG 1265 (AMCA)


BO Strategy: Marketing Implications
PRODUCT
Innovate products and services
that redefine the market
Create new categories not
thought of before
Apple i-Pod is a good example
Even marketing real estate-
DUBAI
Palm
The World

3-83


BO Strategy: Marketing Implications
PLACE
Create a new system for delivering product or
services to customers

Dell

Amazon.com

Zuji.com (travel portal)

3-84

Past Year Examination Questions

Competitive Marketing
Strategy

3-85
MKTG 1265 (AMCA)

Specimen Question # 1

Industry figures suggest that XYZ company is
the market leader in its industry. Describe
the main objectives or focus of a market
leader,
leader in terms of their competitive strategy,
and the activities they may undertake to
achieve those objectives. Please provide
specific examples that relate to the industry
to illustrate your answer.

3-86
MKTG 1265 (AMCA)


Describe the quadrants in the Ansoff
product/market expansion grid, using
examples relevant to company. (Just give
one example per quadrant.) What is the
main strength and weakness of each of
your examples? What is the purpose of
this grid?

3-87
MKTG 1265 (AMCA)


examples relevant to a given company in
order to illustrate your answer. (Just give
one example per quadrant.) What is the
main strength and weakness of each of
your examples? What is the purpose of
this grid?

3-88
MKTG 1265 (AMCA)


A firm's position in the market influences its
competitive strategy. Briefly describe the main
strategies for each of the market positions.
Which position does the “case company” occupy
(be sure to identify the market/industry in which
they compete) and why do you say that?

Note: the “case company” referred to here
is dependent on the actual case you are
given in the exam

3-89
MKTG 1265 (AMCA)


Briefly describe Porter’s generic
competitive strategies. Which one is most
appropriate to a company and why?

3-90
MKTG 1265 (AMCA)


examples relevant to the case company to
illustrate your answer. (Just give one
example per quadrant.) What is the
purpose of this grid?

given in the exam
3-91
MKTG 1265 (AMCA)


Based on a company’s position in a target
company’
market,
market describe the four competitive
positions a firm might occupy. What
position does the “case study company”
occupy in the market and what
competitive strategies would they be likely
to pursue?
given in the exam
3-92
MKTG 1265 (AMCA)


Briefly explain to your marketing
manager in a brief report on the
purpose of the Ansoff
Product/Market Expansion Grid.

3-93
MKTG 1265 (AMCA)


examples relevant to the (case company).
Just give one example per quadrant. What
are the main strength and weakness of
each of your examples? What is the
purpose of this grid?

MKTG 1265 (AMCA)

AMCA Lecture Three Competitive Marketing Strategy

More Related Content

What's hot (20)

Similar to AMCA Lecture Three Competitive Marketing Strategy (20)

Recently uploaded (20)

AMCA Lecture Three Competitive Marketing Strategy