Marketing

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Chapter questions
1. 2.

Dealing with competition

3.

4.

5.

How do marketers identify primary competitors? How should be analyze competitors’ strategies, objectives, strengths and weaknesses? 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? Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009

Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009

Automobile manufacturers compete through large conglomerates

World demand for cars is increasing and competition in the car industry is intense Source : Lehtikuva Oy/Rex Features Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009

Figure 9.1

Five forces determining segment structural attractiveness
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009

Source: From M. E. Porter (1985) Competitive Advantage. Creating and Sustaining Superior Performance, New York: Free Press. Copyright © 1985 by Michael E. Porter. Reproduced with permission from The Free Press, a division of Simon & Schuster Adult Publishing Group

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

Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009

Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009

Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009

Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009

Strengths and weaknesses
Share of market

Share of mind

Share of heart
Figure 9.4

A competitor’s expansion plans
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009

Steps in benchmarking
Determine which functions or processes to benchmark Identify the key performance variables to measure Identify the best-in-class companies Measure the performance of best-in-class companies Measure the company’s performance Specify programs and actions to close the gap Implement and monitor results

Selecting competitors
‘Strong’ vs. ‘Weak’

‘Close’ vs. ‘Distant’

‘Good’ vs. ‘Bad’

Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009

Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009

Expanding the total market

New customers More usage

Figure 9.6

Six types of defence strategies
Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009

Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009

Other competitive strategies
Market challengers

Market challenger strategies

Market followers

Market nichers

Define the strategic objective and opponents Choose a general attack strategy Choose a specific attack strategy

Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009

Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1st Edition © Pearson Education Limited 2009

General attack strategies
Frontal attack Encirclement attack Flank attack

From the “Art of War” to Karmic Capitalism
What goes around comes around Zappos Amazon and Zappos

Bypass attack

Guerrilla...
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