MARKETING MANAGEMENT

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Dealing with Competition
 Figure 1.1 Five Forces Determining
Segment Structural Attractiveness
• Potential entrants
• Suppliers
• Buyers
• Industry competitors
• 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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 Industry Concept of Competition
• Pure monopoly
• Oligopoly
• Monopolistic competition
• Pure competition

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 Analyzing Competitors
• Share of market
• Share of mind
• Share of heart

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 Expanding the Total Market
• New customers
• More usage

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 Figure 11.6 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
• Guerrilla warfare

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 Specific Attack Strategies

• Price discounts • Product innovation

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

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 Market Follower Strategies
• Counterfeiter
• Cloner
• Imitator
• Adaptor

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