CH 12 Addressing Competitionand Driving Growth Dr. A. Haidar at FALL 17-18

1 8
17-
L
FAL
s @
n t
d e
Stu
r
a ida
. H
.r A
r D
fo
E D
CT
R I
S T
R E
© Dr A Haidar FALL 2017-2018
1 8
17-
L
FAL
s @
n t
d e
Stu
r
a ida
. H
.r A
r D
fo
E D
CT
R I
S T
R E
1 8
17-
L
FAL
s @
n t
d e
Stu
r
a ida
. H
.r A
r D
fo
E D
CT
R I
S T
R E
1 8
1 7-
L
FAL
s @
n t
Under d eArmour's fastest growing
t u
r S
business has been with women.
id a
H a
.
.r A
r D
fo
E D
CT
R I
S T
R E
Dealing with Competition 7-18
L 1
Poor firms ignore their FAL
s @
competitors; n t
d e
Stu
Average firms copy their ida r
competitors; H a
A .
r .
r D
Winning firms Dlead fo their
competitors. T E
I C
T R
E S
R
1 8
Ch 12 L 1 7-
FAL
s @
n t
d e
Addressing Competition t u
r S
and DrivingaidaGrowth
. H
.r A
r D
fo
E D
C T
R I
S T
R E Marketing Management, 15th ed
8
This chapter, addresses the following questions:
1
- 7
1
1. Why is it important for companies to growAthe LL core of
their business? F
s @
2. How can market leaders expand thentotal t market and
d e
defend market share? t u
r S
3. should market challengers dattack
i a market leaders?
H a
4. How can market followers . or nichers compete
effectively? .r A
r D
5. What marketing fstrategies o are appropriate at each stage
E D
of the product
C T life cycle?
6. How should I
R marketers adjust their strategies and tactics
T
Sslow economic growth?
during
R E
1 8
Chapter Questions 1 7-
L
FAL
s @
 How do marketers identify primary n t
d e competitors?
t u
 How should we analyze rcompetitors’ strategies,S
id a
objectives, strengths,a and weaknesses?
. H
 How can marketr.leaders A expand the total market
r D
and defend market f o share?
E D
C T
R I
S T
R E
1 8
Growth StrategiesL 1 7-
A L
F
s @
n t
d e
t u
• An important function of marketing r S is to drive
growth in sales and revenue id a for a company.
H a
A .
r .
r D
fo
E D
C T
R I
S T
R E
1 8
A L
1. Grow by building your market share F
s @ and stakeholders
2. Grow by developing committed customers
n t
3. Grow by building a powerful brandtude
r S
4. Grow by innovating new products,
id a services, and experiences
5. Grow by international expansion H a
A .
6. .
Grow by acquisitions, rmergers, and alliances
r D
7. Grow by building an o
f outstanding reputation for social
responsibility T E D
I C
TR
8. Grow by partnering
S
with government and NGOs
R E
1 8
A L
• Growing the Core F
@
• focusing on a firm’s most successful existingtsproducts and markets
en
• Avoid the trap of thinking the “grass is always ud greener” and
t that stretch the company into
overestimating the upside of new ventures r S
uncharted territory. id a
H a
• Growing the core can be a less . risky alternative than expansion into new
product categories. .r A
r D
fo credentials as a source of authority and
• It strengthens a brand’s
E D economies of scale.
credibility and can yield
T
C revenues and lower costs, growing the core can also
I
• Through improved
TR profits.
lead to greater
S
R E
1 8
A L
F
• Three main strategies: s @
n t
d e
t uexisting and new channels
1. Make the core of through both
r S
2. Offer the core product inaiedabrand as distinctive as
possible. . H
. A
3. Drive distributionDnew r formats or versions
f o r
E D
C T
R I
S T
R E
1 8
17-
L
FAL
s @
Q: How do marketers identify n t
d e
S tu
primary competitors?
ida
r
H a
.
.r A
Who are our competitors? r D
fo
E D
CT
R I
S T
R E
1 8
17-
L
FAL
• A company’s closest competitors s @ are those
n t
seeking to satisfy the same d ecustomers needs
t u
r S
and wants making similar
d a offers.
i
H a
A .
r.
r D
fo
E D
CT
R I
S T
R E
1 8
1 7-
L
F AL
s @
• Attention should be paid to latent n t competitors,
d e
who may offer new or other t u ways to satisfy the
r S
same needs. id a
H a
A .
r .
r D
fo
E D
C T
R I
S T
R E
1 8
1 7-
L
FAL
s @
• A company should identify n t competitors
d e
t u
by using both industry r S and market-based
id a
analyses. H a
A .
r .
r D
fo
E D
C T
R I
S T
R E
8
Competitive Strategies for Market Leaders
1
- 7
L 1
A L
classifying firms by roles played @
F
in the target market
n t s
d e
Maintain
t u
Figure 12.1 market
r S
ida
Hypothetical Market share
Structure and NOT
H a
.
rock boat
A
10% .r 20% 30% 40%
r D
fo Market
Market Market Market
ED
Nichers
T
Follower Challenger Leader
I C
R
MKT leaders leads other firms in price changes, NPD, distribution coverage, and promotional
T
S
intensity. Nescafe, McDonald, Cola, Microsoft
E
R
Competitive Strategies for Market 1 8
7 -
L 1
Leaders AL F
s @
• A market leader has the largestenmarket t share and
t ud
usually leads in: S
ar
• price changes, a id
. H
• new-product introductions, . A
D r
• distribution coverage, fo r and
E D
• promotional T intensity.
I C
T R
E S
R
7 -
L 1
Leaders AL F
s @
historical market leaders are: n t
d e
i. Microsoft (computer software), t u
ii. Gatorade (sports drinks),a r S
a id
iii. Best Buy (retail electronics),
. H
iv. McDonald s (fastr.food), A
r D
v. BlueCross BlueShield fo (health insurance),
vi. Visa (credit E Dcards).
C T
R I
S T
R E
Competitive Strategies for Market -1 8
1 7
Leaders LL
FA
s @
n t
• Although marketers assume well-known d e brands
t u
are distinctive in consumers’ r S minds, unless a
id a
dominant firm enjoys a alegal monopoly, it must
. H
maintain constant vigilance. .r A
r D
fo
E D
C T
R I
S T
R E
Competitive Strategies for Market -1 8
1 7
Leaders LL
FA
s @
• To sustain market leadership, marketers n t
d e must find
t u
ways to:
r S
id a
i. expand total market demand
H a
ii. Protect its current A .
share through good defensive and
r .
offensive actions r D
f o
iii. Increase market
E D share, even if market size remains
constant C T
R I
S T
R E
1 8
1 7-
L
F AL
s @
n t
d e
Stu
r
a ida
. H
.r A
r D
fo
E D
T
Zara?
C
Gap is losing it unique style
R I
S T
R E
7 -
Leaders L 1
L
FA
s @
• Market-Leader Strategies n t
d e
• Expanding the Total Market Demand t u
r S
id a
• If the consumption ofHthe a generic product increased
A .
in the market the share r . of the leader would be
r D
dominant fo
E D
C T
R I
S T
R E
Competitive Strategies for Market
1 8
Leaders 7 -
1 L
A L
• Market-Leader Strategies F
s @
• Expanding the Total Market n t
d e
• New Users tu S
ar
• Market-penetration strategy a id (those who might use it but
. H
they don't) . A
D r
• New-market segment fo r strategy (different occasions)
E D
C T
• Geographical-expansion strategy
R I
S T
R E
Competitive Strategies for Market
1 8
Leaders 7 -
1 L
A L
• Market-Leader Strategies F
s @
• Expanding the Total Market n t
d e
t u
1. New Users
r S
id a
2. More Usage
H a
• Amount of consumption A .
.r (package size)
r D
• Frequency fof o consumption
E D
C T
a. Identifying additional opportunities
I
RIdentifying completely new way of usage
S
b.T
R E
1 8
Competitive Strategies for Market Leaders 7 -
L 1
A L
F
• Protecting/Defending Market Share s @(offensive)
n t
d e
i. Continuous innovation Stu
ar
ii. New products a id
. H
iii. Developing products
. A
D r
iv. Distributionreffectiveness
fo
v. CuttingEcost D
C T
R I
S T
R E
1 8
Protecting Market Share1 7-
LL
F A
s @
n t
• Customer should be privileged d eand not trapped or
t u
taken advantage of r S
id a
i. Proactive marketing Ha
A .
ii.Defensive marketing r .
r D
fo
E D
C T
R I
S T
R E
Protecting Market Share 1 8
7 -
Proactive marketing L 1
L
FA
s @
• A company needs two proactive n t skills:
d e
t u to see the writing
i. Responsive anticipation
r S
on the wall id a
H a
ii. Creative anticipation A . to devise innovative
.r
solutions r D
fo
E D
C T
R I
S T
R E
Responsive marketing, anticipative marketing,
1 8 and
7 -
creative marketing. L1 L
F A
• A responsive marketer finds stated needs @
and fills it.
n t
d e
• An anticipative marketer looks ahead t u into what needs
r S
customers may have in the near
id a future.
H a
.
• A creative- marketer is a Amarket-driving firm (discover and
r .
produces solutions)
r D
f o
• Market-driving firms D become market leaders through superior-value
E maybe even unknown consumer needs.
delivery of unmet,
C T
R I
S T
R E
Protecting Market Share -18
1 7
Proactive marketing LL
FA
s @
• Characteristics of proactive companies n t
d e
iii. Proactive firms are ready toStake tu risks and make
ar
mistakes,
a id
H
iv. have a vision of the .future and of investing in it,
. A
v. have the capabilities D r to innovate,
o r
f non-bureaucratic, and
vi. are flexibleDand
T E
vii. have many I C managers who think proactively
T R
E S
R
Protecting Market Share -18
1 7
Proactive marketing LL
FA
s @
n t
d e
• Characteristics of proactive t ucompanies
r S
i. Create new offers to serve id a unmet and even unknown
consumer needs. . H a
. A
ii. Proactive companies D r may redesign relationships
within an industry f o r
E D
C T
R I
S T
R E
1 8
7 -
Defensive Strategy L1 L
F A
s @
• The aim of defensive strategy is n t
to:
d e
t u
i. reduce the probability of attack, r S
id a
ii.divert attacks to less threatened
H a areas, and
.
iii.lessen their intensity. .r A
r D
fo
E D
C T
R I
S T
R E
1 8
7 -
Defensive Strategy L1 L
F A
s @
• Six defense strategies exist foremarket nt leader
t ud
r S
id a
• Decisions about which astrategy to adopt depend on:
. H
i. the company’s resources .r A and goals and
r D
ii.its expectations fo about how competitors will react.
E D
C T
R I
S T
R E
Figure 12.2 Six Types of 1 8
Defense Strategies 17-
L
F
The aim of defensive strategy is to reduce the probability AL
@
of attack, divert attacks to less threatening areas
s
n t
d e
t u
r S
a ida 1
H
position
.
.r A
r D
fo
E D
CT
R I
S T
R E
Competitive Strategies for Market Leaders8
-1
Defensive Strategy 1 7
LL
F A
 Defensive Strategies s @
n t
1. Position Defense d e
t u
r S
 Occupying most desirable id a place in consumers’
H a
mind A .
r .
 Make the brand r D name impregnable
fo
E D
 Pampers
C T
R I
S T
tide
R E
1 8
7 -
Defensive Strategy LL 1
FA
2. Flank strategy
s @
n t
Market leader erect to protect a weak d e front or counterattack
t u
• Smirnoff Vs wolfschmidt r S
id a
• repositioning
H a
• Relska A .
r .
• Popov r D
fo
E D
C T
R I
S T
R E
1 8
Defensive Strategy 7 -
1 L
A L
3. Preemptive Defense F
s @
 Aggressive maneuver across thenmarket t
d e
 Guerrilla attack t u
r S
id a
 Diversity of products with
H a
preannouncement A.
r .
r D
fo
 Microsoft announcement of a new
D
productEwindows 10
C T
R I
 Vaporware
S T
R E
Competitive Strategies for Market Leaders8
-1
Defensive Strategy 1 7
LL
F A
4. Counteroffensive Defensets @
en
(invade the competitors’ t udmain territory)
r S
• Frontally id a
H a
A .
• Pincer attack r .
r D
fo
• Flank ED
C T
R I
S T
R E
8
-1
Defensive Strategy L 1 7
A L
F
s @
n t
• Mobile Defense d e
t u
r S
Stretching domains to new
id a territories
• Market broadening (shift H a focus from product to generic
A .
need solutions from r . petrol to energy)
r D
fo
• Market diversification
E D
T
C industries
• Unrelated
R I
S T
R E
8
-1
Defensive Strategy L 1 7
A L
F
s @
n t
d e
• Contraction Defenser S tu
id a
• Planned contraction H a
A .
(Strategic withdrawal) r .
r D
fo
E D
C T
R I
S T
R E
1 8
INCREASING MARKET SHARE17-
LL
FA
• In many markets, one share point in s @
n t market share is
d e
worth tens of millions of dollars. t u
r S
id a
H a
• Gaining increased market A . share in the served market
.
r produce higher profits.
does not automatically
r D
f o
E D
C T
R I
S T
R E
1 8
INCREASING MARKET SHARE17-
L L
• A company should consider four factors FA before
pursuing increased market share:nt s @
d e
t u
1. The possibility of provoking antitrust r S action.
id a
2. Economic cost. H a
A .
r .
3. Pursuing the wrongD marketing-mix strategy.
f o r
D
4. The effect of Eincreased market share on actual and
perceivedIC T
quality.
T R
E S
R
1 8
Mobile phone market share 1 7-
L L
F A
s @
n t
d e
Stu
r
a ida
. H
.r A
r D
fo
E D
CT
R I
S T
R E
1 8
OTHER COMPETITORS STRATEGY 7 -
L 1
A L
F
s @
n t
Market ude
S t
Challengers ar
a id
. H
. A
D r
Market f o r Market
E D Nichers
T
Followers
C
R I
S T
R E
OTHER COMPETITORS STRATEGY 1 8
7 -
Market Challenger StrategiesL 1
A L
F
s @
• Define the strategic objective and n t opponents
d e
• It can attack the market leader t u
r S
• It can attack firms of its own size
id a that are not doing the job and
are underfinanced H a
• It can attack small local. A
.
D r and regional firms
• Choose a general o r
f attack strategy
E D
• Choose a specific T attack strategy
I C
T R
E S
R
Market Challenger Strategies -18
General Attack Strategies L 1 7
A L
F
s @
n t
Frontal Attack d
Flank e Attack
t u
r S
ida a
EncirclementA. H
r . Bypass Attack
Attack r D
fo
E D
C T
R I Guerrilla Warfare 1. Conventional or
S T unconventional
RE
2. Expensive
Market Challenger Strategies -18
General Attack Strategies L 1 7
A L
• Bypass F
s @
n t
• Diversifying into unrelated products.
d e
t u
• Diversifying into new geographical
r S markets.
id a
H a
• Technological leapfrogging A . into new technologies
.r
r D
fo
E D
C T
R I
S T
R E
General Attack Strategies
1 8
17-
L
FAL
s @
n t
d e
Stu
r
a ida
. H
.r A
r D
fo
E D
CT
R I
S T
R E
1 8
Specific Attack Strategies 1 7-
L L
F A
• Price discounts • Improved s @services
n t
• Lower-priced d e
• Distribution
t u
goods r S
innovation
id a
• Value-priced
H a • Manufacturing-
goods A . cost reduction
r .
• Prestige goods r D • Intensive
fo
• Product E D advertising
C T promotion
I
proliferation
R
T
• SProduct innovation
R E
1 8
Market Follower Strategies 1 7-
L L
F A
s @
Counterfeiter
n t
d e
Stu
r
ida
Cloner
H a
A.
Imitator Dr .
f o r
E D
C T
Adapter
I
S TR
R E
1 8
Designing Competitive Strategies 7 -
L 1
A L
• Market-Follower Strategies F
s @
• Innovative imitation (Producteimitation) nt
t ud
• Product innovation
r S
• Four Broad Strategies: id a
H a
• Counterfeiter A.
r .
• Cloner r D
fo
• Imitator E D
C T
R I
• Adapter
S T
R E
1 8
Niche Specialist Roles 1 7-
L
F AL
s @
n t
• End-User Specialist
d e
• Product-Line Specialist
t u
• Vertical-Level Specialist S
• r Job-Shop Specialist
• ida
Customer-Size Specialist a • Quality-Price Specialist
. H
• Specific-Customer . A • Service-Specialist
D r
Specialist
f o r • Channel Specialist
D
• Geographic Specialist
E
C T
R I
S T
R E
Balancing Customer and Competitor 1 8
7 -
Orientations L 1
L
FA
 Competitor-centered companys @
nt e
 Marketers are on constant alert t ud
r S
 Reactive rather than proactive
id a
H a
 Customer-centered A . company
r .
 Identify ongoingr D arising needs of consumers
f o
 Try to differentiate
E D your market offer
C T
R I
 Watch competitors and learn from them
S T
R E
1 8
Product Life Cycles 1 7-
L
F AL
 Products have a limited life @
n t s
 Product sales pass through distinct d e stages each
t u
with different challenges and r S opportunities
id a
 Profits rise and fall atHdifferent a stages
A .
 Products require different r . strategies in each life
r D
cycle stage fo
E D
C T
R I
S T
R E
Figure 10.1 Sales and 1 8
Product Life Cycle 17-
L
FAL
s @
n t
The PLC
d e
concept can
Stu
be used to r
analyze a
a ida
product
. H
category, a
.r A
product
r D
form, a fo
product, or a ED
C T
brand.
R I
S T
R E
1 8
Product Life Cycle 7- 1
L
L the
Product category or classes (soft drinks) have F A
longest life cycles, with sales of many @ product classes
in the mature stage for a long timeen t s
ud
Product forms (diet colas) haver the St standard PLC—
shape, introduction, rapid growth, id a maturity, and
H a
decline
A .
r .
Brands (Diet Dr. Pepper) r D have changing PLCs due to
competitive threats fo
E D
Using the PLC
C T to forecast brand performance or to
R
develop marketing I strategies is problematic
S T
R E
Figure 10.2 Common 1 8
7 -
Product Life-Cycle PatternsL 1
A L
F
s @
n t
d e
Stu
r
a ida
. H
.r A
r D
fo
E D
CT
R I
S T
R E
Figure 10.3 Style, Fashion, and Fad Life
1 8
7 -
Cycles L1 L
F A
s @
n t
d e
Stu
r
a ida
. H
.r A
r D
fo
E D
CT
R I
S T
R E
1 8
Style, Fashion, and Fad Life Cycles 7 -
L 1
A L
• A style is a basic and distinctive mode of expression F appearing
s @
in a field of human endeavor.
n t
d e
• A fashion is a currently accepted or popular t u
r S style in a given
field.
id a
• The length of a fashion cycle H a is hard to predict.
A .
r . quickly into public view, are
• Fads are fashions that come
r D
adopted with great zeal, fo peak early, and decline very fast.
• Fads do not E Dsurvive because they do not normally satisfy
T
Cneed.
a strong
R I
S T
R E
1 8
Style, Fashion, and Fad Life Cycles 7 -
L 1
A L
F
s @
Fashions pass through four stages: n t
d e
 Distinctiveness. t u
r S
 Emulation. id a
H a
 Mass-fashion. . A.
D r
 Decline. for
E D
C T
R I
S T
R E
Figure 10.4 Long-Range Product Market Expansion 1 8
7 -
Strategy L 1
A L
F
s @
n t
d e
t u
r S
id a
H a
A .
r .
r D
fo
E D
C T
R I
S T
R E
Strategies for Sustaining 1 8
7 -
Rapid Market Growth L 1
A L
 Improve product quality, add new features, F and
s @
improve styling n t
d e
 Add new models and flanker products t u
r S
 Enter new market segments id a
H a
 Increase distribution coverage
A .
r .
 Shift from product-awareness
r D advertising to product-
preference advertisingf o
E D
 Lower prices
C T to attract the next layer of price-sensitive
buyersTR I
E S
R
1 8
Stages in the Maturity Stage 17-
LL
FA
s @
Growth Stable n t
Decaying
d e maturity
t u
r S
id a
H a
A .
r .
r D
fo
E D
C T
R I
T
R ES
1 8
PLC Decline Stage 1 7-
L
AL
• Sales and profits decline for a number of reasons: F technological
s @
advances, shifts in consumer tastes, and increased domestic
n t
and foreign competition.
d e
tu
• All lead to overcapacity, increasedSprice-cutting, and profit
ar
erosion. id
a
. H
.r Athe market.
• Some firms withdraw from
D
• Those remaining mayr reduce the number of products they offer.
fo
E D
• In handling aging
C T products, a company faces a number of tasks
and decisions.R I
S T
R E
Strategic Options 1 8
Decline Stage 1 7-
L
AL
F five strategies
In a study of company strategies in declining industries,
are available to the firm:
s @
nt
• Establish a system for identifying weak products.
e
t d
u industry’s relative
• The appropriate strategy depends on
r S the
attractiveness and the company’s
id a competitive strength in that
industry.
H a
A .
r .
• Companies that successfully restage or rejuvenate a mature
D adding value to the original product.
product often do sor by
fo
• Harvesting ED
C T
• Divesting R I
S T
R E
1 8
Marketing Program Modifications 7 -
L 1
A L
F
Prices
s @
n t
d e
Distribution t u
r S
id a
H a
Advertising
A .
r .
r D
Sales promotion
fo
E D
C T Services
R I
S T
R E
1 8
Ways to Increase Sales Volume17-
LL
F A
 Convert nonusers @
 Enter new market segments ent s
t ud
 Attract competitors’ customers S
ar
 Have consumers use the a id product on more
occasions . H
.r A
 Have consumers r Duse more of the product on
f o
each occasion
E D
 Have consumers C T
R I use the product in new ways
S T
R E

CH 12 Addressing Competitionand Driving Growth Dr. A. Haidar at FALL 17-18

Загружено:

Сведения о документе

Оригинальное название

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

CH 12 Addressing Competitionand Driving Growth Dr. A. Haidar at FALL 17-18

Загружено:

Авторское право:

Доступные форматы

1 8

Вам также может понравиться