Ch11 dealing with competition gianan

Top 10 Learning Questions for Chapter 11 DEALING WITH COMPETITION Oamar Nanaig Gianan December 29, 2011 V56 Marketing Class of Prof. Remigio Joseph De Ungria Chapter 11 Marketing Management, Kotler 14 th ed http://www.slideshare.net/maogianan

1. Which of the 5 forces determining market segment attractiveness is applicable where consumers have access to alternative products and services which would essentially satisfy the consumers' needs ? Threat of intense segment rivalry. Threat of new entrants. Threat of substitute products. Threat of buyers’ growing bargaining power. Threat of suppliers’ growing bargaining power. http://www.slideshare.net/maogianan

http://www.slideshare.net/maogianan 1. The Five Forces Determining Segment Structural Attractiveness according to Michael Porter. Industry Competitors (Segment rivalry) Potential Entrants (Threat of mobility) Buyers (Buyer power) Substitutes (Threat of substitutes) Suppliers (Supplier power)

http://www.slideshare.net/maogianan 1. The Five Forces Determining Segment Structural Attractiveness according to Michael Porter. Industry Competitors (Segment rivalry) Potential Entrants (Threat of mobility) Buyers (Buyer power) Substitutes (Threat of substitutes) Suppliers (Supplier power) A segment is unattractive when there are actual or potential substitutes for the product. Substitutes place a limit on prices and profits

http://www.slideshare.net/maogianan 1. The Five Forces Determining Segment Structural Attractiveness according to Michael Porter. Industry Competitors (Segment rivalry) Potential Entrants (Threat of mobility) Buyers (Buyer power) Substitutes (Threat of substitutes) Suppliers (Supplier power) Buyers posses strong bargaining power, which gives buyers more power to negotiate. Segment is attractive if competition cannot come in easily Suppliers can raise prices or reduce supplies for the segment’s raw materials. If the segment already has lots of strong or aggressive players, it is unattractive.

2. Which is a more attractive scenario for a new company to venture into a market segment? Segment has high entry barrier, and high exit barrier. Segment has high entry barrier, and low exit barrier. Segment has low entry barrier, and high exit barrier. Segment has low entry barrier, and low exit barrier. http://www.slideshare.net/maogianan

2. Entry and Exit barriers http://www.slideshare.net/maogianan Industries differ greatly in ease of entry. Major entry barriers include high capital requirements; economies of scale; patents & licensing; scarce locations; raw materials. Exit barriers also exist. Legal or moral obligations to customers, creditors and employees; government restrictions; low asset-salvage; lack of alternative opportunities; high vertical integration. High Entry barrier Low exit barrier The most attractive segment is when few new firms can enter the industry, and poor-performing firms can exit easily

2. Entry and Exit barriers http://www.slideshare.net/maogianan High Entry barrier High exit barrier Low Entry barrier Low exit barrier Low Entry barrier High exit barrier Profit potential is high, but firms face more risk because poorer-performing firms stay and fight it out Firms easily enter and leave industry; returns are stable and low The worst: Firms enter during good times but find it hard to leave during bad times.

3. What type of competition is exhibited by the local telco companies: PLDT, Globe, Digitel? http://www.slideshare.net/maogianan Pure monopoly Oligopoly Monopolistic competition Pure competition

3. Industry Concept of Competition http://www.slideshare.net/maogianan Pure Monopoly Oligopoly A small number of large firms offer relatively the same product/service. Such companies find it hard to charge higher than the going price. Gaining competitive advantage is by reducing internal costs. Monopolistic competition Pure competition

3. Industry Concept of Competition http://www.slideshare.net/maogianan Pure Monopoly Only one firm provides a certain product or service in a certail area. If monopolist is unregulated, it can charge higher prices for minimal cost of service/product A regulated monopolist is required to charge at lower margins as a matter of public interest. Oligopoly Monopolistic competition Many competitots are able to differentiate their offers in whole or in part (restaurants, beaty shops) Pure competition No basis for differentiation. (Commodities market)

http://www.slideshare.net/maogianan 4. In analyzing competitors, a competitor has "Share of ____" when consumers name the competitor as their preferred company to buy a product from ? Share of market Share of mind Share of heart

4. Variables in analyzing competition http://www.slideshare.net/maogianan Share of market Share of mind Share of heart The competitor’s share of the target market The percentage of customers who named the competitor in responding to the statement: “Name the first company that comes to mind in this industry” The percentage of customers who named the competitor in responding to the statement: “Name the company from which you would prefer to buy the product”

http://www.slideshare.net/maogianan 5. In expanding the total market, firms can devise this strategy to get customers who use the competitor’s products. Market penetration strategy New-market segment strategy Geographical-expansion strategy

http://www.slideshare.net/maogianan 5. Expanding the Total Market NEW CUSTOMERS Companies can search for new users among 3 groups: Those who might use it but do not (market penetration strategy) Those who have never used it (new market strategy) Those who live elsewhere (geographical expansion strategy)

http://www.slideshare.net/maogianan 6. In expanding the total market, what strategy is being used by these companies? Oral-B indicator; BRITA water purifiers. New Customers More Usage

http://www.slideshare.net/maogianan 6. Expanding the Total Market NEW CUSTOMERS MORE USAGE Companies can search for new users among 3 groups: Those who might use it but do not (market penetration strategy) Those who have never used it (new market strategy) Those who live elsewhere (geographical expansion strategy) Usage can be increased by: Increasing the level or quantity of consumptions Increasing the frequency of consumption

http://www.slideshare.net/maogianan 6. Expanding the Total Market MORE USAGE Usage can be increased by: Increasing the level or quantity of consumptions Increasing the frequency of consumption Cartridge must be replaced when bars are empty Brush must be replaced when blue strip has faded

http://www.slideshare.net/maogianan 7. Which defense strategy did PAL use against Cebu Pacific in acquiring and restructuring Airphil Express? Position Defense Flank Defense Preemptive Defense Counter-offensive defense Mobile defense Contraction defense

http://www.slideshare.net/maogianan 7. Defending Market Share (2) Flank (5) Mobile (3) Pre-emptive (4) Counter-offensive ATTACKER DEFENDER (1) Position

http://www.slideshare.net/maogianan 7. Defending Market Share (2) Flank Market leader should erect outposts to protect a weak front.

Premium http://www.slideshare.net/maogianan 7. Defending Market Share Budget Note: Strategy was a little too late though as CEB already ate up PALs market dhare for domestic flights

http://www.slideshare.net/maogianan 8. What kind of attack are "Price Wars" ? Frontal attack Flank attack Encirclement attack Bypass attack Guerilla attack

http://www.slideshare.net/maogianan 8. Attack Strategies Frontal Attack Attacker matches opponent’s product, advertising, price and distribution . Flank Attack Targeted at enemy’s weak spots. Encirclement Attack “ Blitz”. Launching a grand offensive on all fronts. Bypass Attack Indirect strategy where attack is done on easier markets to broaden one’s resource base Guerilla Attack Small, intermittent attacks meat to harass, demoralize competitor.

http://www.slideshare.net/maogianan 9. The "Halo Effect" generated by Apple's mobile devices (iPod, iPhone, iPad) is a good example of which kind of attack on the PC industry? Frontal attack Flank attack Encirclement attack Bypass attack Guerilla attack

http://www.slideshare.net/maogianan 9. Attack Strategies Frontal Attack Attacker matches opponent’s product, advertising, price and distribution. Flank Attack Targeted at enemy’s weak spots. Encirclement Attack “ Blitz”. Launching a grand offensive on all fronts. Bypass Attack Indirect strategy where attack is done on easier markets to broaden one’s resource base Guerilla Attack Small, intermittent attacks meat to harass, demoralize competitor.

http://www.slideshare.net/maogianan 9. Halo Effect Customers buying iPods are also buying Macs ( http://www.macobserver.com/tmo/article/Analysts_Agree_Apples_Halo_Effect_Might_Be_the_Real_Deal/ )

http://www.slideshare.net/maogianan 10. Tokai, Guyatone, Photogenic, Greco are electric guitar manufacturers. Which Market-follower strategy? Counterfeiter Cloner Imitator Adapter

http://www.slideshare.net/maogianan 10 . Market-Follower strategy Counterfeiter Counterfeiter duplicates the leader’s product and packaging and sells it under the guise that it is an original product. Cloner Emulates products, name and packaging with slight variations. Imitator Copies things but maintains differentiation in terms of packaging, advertising, pricing or location Adapter Takes leader’s product and adapts or improves on them

http://www.slideshare.net/maogianan 10 . Market-Follower strategy Gibson SG Fender Stratocaster Gibson Les Paul Tokai SG Greco Strat Photogenic Les Paul

Ch11 dealing with competition gianan

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Ch11 dealing with competition gianan