MKT: 601

Chapter 12: Addressing Competition and Driving

Growth
 GROWTH STRATEGIES

• Grow by Building Your Market Share

• Grow through Developing Committed Customers and
Stakeholders
• Grow by Developing a Powerful Brand
• Grow by Innovating New Products, Services, and Experiences
• Grow by International Expansion
• Grow by Mergers, Acquisitions, Alliances, and Joint Ventures
• Grow by Building an Outstanding Reputation for Social
Responsibility
• Grow by Partnering with Government and NGOs
 Competitive Strategies for Market Leader

• EXPANDING TOTAL MARKET DEMAND

• NEW CUSTOMERS
• MORE USAGE
• Additional Opportunities to Use the Brand
• New Ways to Use the Brand

• PROTECTING MARKET SHARE

• PROACTIVE MARKETING
• A responsive marketer finds a stated need and fills it.
• An anticipative marketer looks ahead to needs customers may
have in the near future.
• A creative marketer discovers solutions customers did not ask for
but to which they enthusiastically respond. Creative marketers are
proactive market-driving firms, not just market driven ones
 DEFENSIVE MARKETING
• Position defense: Get a big position in consumer mind, like
Unilever
• Flank : Increase ad for current and can introduce lower price
extension
• Preemptive : Attack each and every competitors possible
• Counteroffensive : Attack in competitors main ground
• Mobile : Can move to other industry or focus on underlying
general needs
• Contraction :Move away from weak area and invest in strong area
Position defense: Get a big position in consumer mind, like Unilever
Flank : Increase ad for current and can introduce lower price extension
Preemptive : Attack each and every competitors possible
Counteroffensive : Attack in competitors main ground
Mobile : Can move to other industry or focus on underlying general needs
Contraction :Move away from weak area and invest in strong area
 INCREASING MARKET SHARE

Factors to be considered before increasing

share
• The possibility of provoking antitrust action
• Economic cost
• Pursuing the wrong marketing-mix strategy
• The effect of increased market share on
actual and perceived quality
 MARKET- CHALLENGER STRATEGIES
DEFINING THE STRATEGIC OBJECTIVE AND OPPONENT(S)

• It can attack the market leader.

• It can attack firms of its own size that are not
doing the job and are underfinanced.
• It can attack small local and regional firms
• It can attack the Status quo
 CHOOSING A GENERAL ATTACK STRATEGIES

• Frontal attack: Matching 4P same with leaders

• Flank attack: Attack weak spots
• Encirclement attack: In each level
• Bypass attack: New geography or technology
• Guerrilla attack: Small intermittent attack
 MARKET-FOLLOWER’S STRATEGIES

• Cloner (Slight variation)

• Imitator (Some strategy)
• Adapter(improve)
• MARKETING STRATEGIES: INTRODUCTION STAGE AND THE
PIONEER ADVANTAGE
• PIONEERING ADVANTAGES
• PIONEERING DRAWBACKS
• GAINING A PIONEERING ADVANTAGE
•
• MARKETING STRATEGIES: GROWTH STAGE
• MARKETING STRATEGIES: MATURITY STAGE
• MARKET MODIFICATION
• A company might try to expand the market for its mature brand
by working with the two factors that make up sales volume:
Volume = number of brand users × usage rate per user
 PRODUCT MODIFICATION

• Quality improvement increases functional

performance by launching a “new and
improved” product.
• Feature improvement adds size, weight,
materials, supplements, and accessories that
expand the product’s performance,
versatility, safety, or convenience.
• Style improvement increases the product’s
esthetic appeal.
 MARKETING PROGRAM MODIFICATION

• MARKETING STRATEGIES: DECLINE STAGE

• Eliminating weak products
• Harvesting and divesting

• EVIDENCE FOR THE PRODUCT LIFE-CYCLE CONCEPT

• CRITIQUE OF THE PRODUCT LIFE-CYCLE CONCEPT
• MARKET EVOLUTION