Chapter

12
Addressing
Competition and
Driving Growth

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 Competitive Strategies
for Market Leaders
• Expanding total market
demand

• Protecting market share

• Increasing market share

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 Expanding total market demand

• New customers
• More usage

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 Protecting market share

• Proactive
marketing
– Responsive
anticipation
– Creative
anticipation

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 Protecting market share
• Defensive marketing

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 PRODUCT LIFE-CYCLE
MARKETING STRATEGIES
• A company’s
positioning and
differentiation
strategy must change
as its product,
market, and
competitors change
over the PLC

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 Figure 12.7
Style, Fashion, And Fad Life Cycles

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 Marketing Strategies: Introduction
Stage
• Pioneering advantages
– Recall of brand name
– Establishes product class attributes
– Captures more uses in middle of market
• Pioneering drawbacks
– Imitators can surpass innovators
– Once leadership is lost, it’s rarely regained

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 Marketing Strategies: Growth
Stage
• To sustain rapid market share growth now:
– Improve product quality and add new features
– Add new models and flanker products
– Enter new market segments
– Increase distribution coverage and enter new
distribution channels
– Shift from awareness and trial communications to
preference and loyalty communications
– Lower prices to attract the next layer of price-sensitive
buyers

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Marketing Strategies: Maturity
Stage

Market modification

Product modification

Marketing program
modification

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 Marketing Strategies: Decline
Stage
• Eliminating Weak
Products

• Harvesting and
Divesting

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NEW WAYS TO USE A BRAND

Copyright
Copyright © 2011 Pearson © 2016 Pearson
Education, Education, Inc.
Inc. Publishing as Prentice Hall 12-12