Competitive Dynamics

Take aways..
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?

Strategies for Market Leader

Expanding total Market
Protecting Market share

Expanding the Total Market

New customers
More usage
Additional Opportunities to use the
brand
When to replace the tooth brush
When to paint the house?
Chocolate after every meal

New ways to use the brand

Biscuits as base for variety of toppings

Protecting Market share

Proactive Marketing
Defensive Marketing

Six Types of
Defense Strategies

Position defense
Flank
Preemptive
Counteroffensive
Mobile
Contraction

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

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
Guerilla 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

PLC STRATEGIES
What marketing strategies are
appropriate at each stage of the
product life cycle?
What are the implications of market
evolution for marketing strategies?

Claims of Product Life

Cycles
Products have a limited life
Product sales pass through distinct
stages each with different challenges
and opportunities
Profits rise and fall at different stages
Products require different strategies
in each life cycle stage

Sales and
Product Life Cycle

Common
Product Life-Cycle Patterns

Style, Fashion, and Fad Life

Cycles

The Pioneer Advantage

Strategies for Sustaining

Rapid Market Growth
Improve product quality, add new features,
and improve styling
Add new models and flanker products
Enter new market segments
Increase distribution coverage
Shift from product-awareness advertising
to product-preference advertising
Lower prices to attract the next layer of
price-sensitive buyers

Stages in the Maturity Stage

Growth

Stable

Decaying
maturity

Marketing Product
Modifications
Quality
improvements
Feature
improvements
Style
improvements

Marketing Program
Modifications
Prices
Distribution
Advertising
Sales promotion
Services

Ways to Increase Sales

Volume

Convert nonusers
Enter new market segments
Attract competitors customers
Have consumers use the product on
more occasions
Have consumers use more of the
product on each occasion
Have consumers use the product in
new ways