Kotler11_media.ppt 2151KB Aug 31 2008 09:55:48 PM
MARKETING MANAGEMENT
12th edition
11
Dealing with
Competition
Kotler
Keller
Chapter Questions
• 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?
• How should market challengers attack market
leaders?
• How can market followers or nichers compete
effectively?
11-2
Competition in the Jeans Market
11-3
Figure 1.1 Five Forces Determining
Segment Structural Attractiveness
11-4
Identifying Competitors
11-5
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
11-6
Industry Concept of Competition
Pure
Pure Monopoly
Monopoly
Oligopoly
Oligopoly
Monopolistic
Monopolistic Competition
Competition
Pure
Pure Competition
Competition
11-7
Figure 11.2 Competitor Map
11-8
Figure 11.4 A Competitor’s
Expansion Plans
11-9
Analyzing Competitors
Share of market
Share of mind
Share of heart
11-10
Table 11.2
11-11
Figure 11.5
Hypothetical Market Structure
10%
20%
Market Market
Nichers Follower
30%
Market
Challenger
40%
Market
Leader
11-12
Expanding the Total Market
New customers
More usage
11-13
Figure 11.6 Six Types of
Defense Strategies
11-14
Figure 11.7
Optimal Market Share
11-15
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
11-16
Other Competitive Strategies
Market
Challengers
Market
Followers
Market
Nichers
11-17
Market Challenger Strategies
• Define the strategic objective and
opponents
• Choose a general attack strategy
• Choose a specific attack strategy
11-18
General Attack Strategies
Frontal Attack
Flank Attack
Encirclement
Attack
Bypass Attack
Guerrilla Warfare
11-19
Pepsi buys Gatorade in a Bypass
Strategy
11-20
Specific Attack Strategies
•
•
•
•
•
Price discounts
Lower-priced goods
Value-priced goods
Prestige goods
Product proliferation
•
•
•
•
Product innovation
Improved services
Distribution innovation
Manufacturing-cost
reduction
• Intensive advertising
promotion
11-21
Samsung Attacks Using
Innovation
11-22
Market Follower Strategies
Counterfeiter
Cloner
Imitator
Adapter
11-23
Market Nicher Strategies
11-24
Balancing Orientations
CompetitorCentered
CustomerCentered
11-25
Marketing Debate
How do you attack a Category
Leader?
Take a position:
1. The best way to challenge a leader is to
attack its strengths.
2. The best way to attack a leader is
to avoid a head-on assault and to adopt
a flanking strategy.
11-26
Marketing Discussion
Pick an industry. Classify firms
according to the four different
roles they might play. How would
you characterize the nature of
competition? Do the firms follow
the principles described in this
chapter?
11-27
12th edition
11
Dealing with
Competition
Kotler
Keller
Chapter Questions
• 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?
• How should market challengers attack market
leaders?
• How can market followers or nichers compete
effectively?
11-2
Competition in the Jeans Market
11-3
Figure 1.1 Five Forces Determining
Segment Structural Attractiveness
11-4
Identifying Competitors
11-5
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
11-6
Industry Concept of Competition
Pure
Pure Monopoly
Monopoly
Oligopoly
Oligopoly
Monopolistic
Monopolistic Competition
Competition
Pure
Pure Competition
Competition
11-7
Figure 11.2 Competitor Map
11-8
Figure 11.4 A Competitor’s
Expansion Plans
11-9
Analyzing Competitors
Share of market
Share of mind
Share of heart
11-10
Table 11.2
11-11
Figure 11.5
Hypothetical Market Structure
10%
20%
Market Market
Nichers Follower
30%
Market
Challenger
40%
Market
Leader
11-12
Expanding the Total Market
New customers
More usage
11-13
Figure 11.6 Six Types of
Defense Strategies
11-14
Figure 11.7
Optimal Market Share
11-15
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
11-16
Other Competitive Strategies
Market
Challengers
Market
Followers
Market
Nichers
11-17
Market Challenger Strategies
• Define the strategic objective and
opponents
• Choose a general attack strategy
• Choose a specific attack strategy
11-18
General Attack Strategies
Frontal Attack
Flank Attack
Encirclement
Attack
Bypass Attack
Guerrilla Warfare
11-19
Pepsi buys Gatorade in a Bypass
Strategy
11-20
Specific Attack Strategies
•
•
•
•
•
Price discounts
Lower-priced goods
Value-priced goods
Prestige goods
Product proliferation
•
•
•
•
Product innovation
Improved services
Distribution innovation
Manufacturing-cost
reduction
• Intensive advertising
promotion
11-21
Samsung Attacks Using
Innovation
11-22
Market Follower Strategies
Counterfeiter
Cloner
Imitator
Adapter
11-23
Market Nicher Strategies
11-24
Balancing Orientations
CompetitorCentered
CustomerCentered
11-25
Marketing Debate
How do you attack a Category
Leader?
Take a position:
1. The best way to challenge a leader is to
attack its strengths.
2. The best way to attack a leader is
to avoid a head-on assault and to adopt
a flanking strategy.
11-26
Marketing Discussion
Pick an industry. Classify firms
according to the four different
roles they might play. How would
you characterize the nature of
competition? Do the firms follow
the principles described in this
chapter?
11-27