COMPETITIVE DYNAMICS

CHAPTER 11
 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?
What marketing strategies are appropriate at
each stage of the product life cycle?
 Figure 11.1
Hypothetical Market Structure

10% 20% 30% 40%

Market Market Market Market
Nichers Follower Challenger Leader
Expanding the Total Market

New customers

More usage
 Protecting Market Share
Proactive Marketing
Defensive Marketing
Figure 11.6 Six Types of
Defense Strategies
Other Competitive Strategies

Market
Challengers

Market Market
Followers 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
Bypass Attack
Attack

Guerrilla Warfare
 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
 Market Follower Strategies

Counterfeiter

Cloner

Imitator

Adapter
 Niche Specialist Roles
End-User Specialist Product-Line Specialist
Vertical-Level Specialist Job-Shop Specialist
Customer-Size Specialist Quality-Price Specialist
Specific-Customer Service-Specialist
Specialist Channel Specialist
Geographic Specialist
Product Life Cycle Marketing Strategies
Product Life Cycle
Introduction
Growth
Maturity
Decline