COMPETITIVE DYNAMICS

CHAPTER 11

 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?

Figure 11.1
Hypothetical Market Structure

10%
20%
Market Market
Nichers Follower

30%
Market
Challenger

40%
Market
Leader

Expanding the Total Market

New customers
More usage

Protecting Market Share

Proactive Marketing
Defensive Marketing

Figure 11.6 Six Types of

Defense Strategies

Other Competitive
Strategies
Market
Challengers
Market
Followers

Market
Nichers

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

Guerrilla Warfare

Specific Attack Strategies

Price discounts
Lower-priced
goods
Value-priced
goods
Prestige goods
Product
proliferation
Product
innovation

Improved
services
Distribution
innovation
Manufacturingcost reduction
Intensive
advertising
promotion

Market Follower Strategies

Counterfeiter
Cloner
Imitator
Adapter

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 Cycle Marketing

Strategies
Product Life Cycle
Introduction
Growth
Maturity
Decline