Kotler MM 13e Overheads 11

11
Dealing
with Competition

Marketing Management, 13th ed

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?

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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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Figure 1.1 Five Forces Determining
Segment Structural Attractiveness

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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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Figure 11.2 Strategic Groups

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Figure 11.4 A Competitor’s
Expansion Plans

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Table 11.1 Customer Ratings of
Competitors on Key Success Factors

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Strengths and Weaknesses
Share of market
Share of mind
Share of heart

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Table 11.2 Market Share,
Mind Share, and Heart Share

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Figure 11.5
Hypothetical Market Structure

10%
20%
Market Market
Nichers Follower

30%
Market
Challenger

40%
Market
Leader

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Figure 11.6 Six Types of
Defense Strategies

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Figure 11.7
Optimal Market Share

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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
Lower-priced goods
Value-priced goods
Prestige goods
Product proliferation

Product innovation

• Improved services
• Distribution
innovation
• Manufacturing-cost
reduction
• Intensive advertising
promotion

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Market Follower Strategies
Counterfeiter
Cloner
Imitator
Adapter
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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

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