11

Dealing
with Competition

Marketing Management, 13th ed

 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?

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 Chapter Questions (cont.)

• How should market challengers attack

market leaders?
• How can market followers or nichers
compete effectively?

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 Five Forces Determining Segment
Structural Attractiveness
• Industry competitors
• Potential entrant
• Suppliers
• Buyers
• Substitutes

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 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

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 Strengths and Weaknesses

• Share of market
• Share of mind
• Share of heart

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 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

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 Steps in Benchmarking (cont.)

• Measure the company’s performance

• Specify programs and actions to close
the gap
• Implement and monitor results

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 Expanding the Total Market

• New customers
• More usage

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 Six Types of
Defense Strategies
• Defender
• Flank
• Preemptive
• Counteroffensive
• Mobile
• Contraction

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 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

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 Other Competitive Strategies

• Market challengers
• Market followers
• Market nichers

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 Market Challenger Strategies

• Define the strategic objective and

opponents
• Choose a general attack strategy
• Choose a specific attack strategy

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 General Attack Strategies

• Frontal attack
• Flank attack
• Encirclement attack
• Bypass attack
• Guerilla warfare

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 Specific Attack Strategies

• Price discounts • Improved services

• Lower-priced goods • Distribution
• Value-priced goods innovation
• Prestige goods • Manufacturing-cost
• reduction
Product proliferation
• Intensive advertising
• Product innovation
promotion

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 Market Follower Strategies

• Counterfeiter
• Cloner
• Imitator
• Adapter

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 Niche Specialist Roles

• End-User Specialist • Product-Line

• Vertical-Level Specialist
Specialist • Job-Shop Specialist
• Customer-Size • Quality-Price
Specialist Specialist
• Specific-Customer • Service-Specialist
Specialist • Channel Specialist
• Geographic
Specialist

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 Balancing Orientations

• Competitor-centered
• Customer-centered

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