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 Competitors
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% 30% 40%

Market Market Market Market
Nichers Follower Challenger 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 Market
Followers 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
Bypass Attack
Attack

Guerrilla Warfare
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 Specific Attack Strategies

Price discounts Improved services

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

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 Market Follower Strategies

Counterfeiter

Cloner

Imitator

Adapter

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 Niche Specialist Roles

End-User Specialist Product-Line

Vertical-Level Specialist
Specialist Job-Shop Specialist
Customer-Size Quality-Price
Specialist Specialist
Specific-Customer Service-Specialist
Specialist Channel Specialist
Geographic
Specialist

Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 11-19