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Competitive Dynamics Notes

This document discusses strategies for dealing with competition from marketing management notes. It covers analyzing competitors' market share, expanding the total market through new customers or more usage. Porter's five forces model and industry concepts of competition are explained. Six types of defense strategies are listed: position, flank, preemptive, counteroffensive, mobile, and contracting. Factors for pursuing increased market share and other competitive strategies like market challengers and followers are outlined. Balancing competitor-centered and customer-centered orientations is also mentioned.

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Rina Fordan Bilog
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297 views

Competitive Dynamics Notes

This document discusses strategies for dealing with competition from marketing management notes. It covers analyzing competitors' market share, expanding the total market through new customers or more usage. Porter's five forces model and industry concepts of competition are explained. Six types of defense strategies are listed: position, flank, preemptive, counteroffensive, mobile, and contracting. Factors for pursuing increased market share and other competitive strategies like market challengers and followers are outlined. Balancing competitor-centered and customer-centered orientations is also mentioned.

Uploaded by

Rina Fordan Bilog
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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University of the Philippines Extension Program in Olongapo (UPDEPO)

Marketing Management
Notes on Chapter 11 | DEALING WITH COMPETITION [Keller/Kotler]
Five Forces Determining Segment Structural Attractiveness (Porters
Model)

Analyzing Competitors
Share of market
Share of mind
Share of heart

Expanding the Total Market

o
o
o

New Customers three groups:


Market-Penetration strategy customers might use but do not
New-Market segment strategy customers have never used it
Geographical-Expansion strategy customers who live
elsewhere

More Usage
Additional Opportunities to Use the Brand communicate
the appropriateness and advantages of using the brand
o New Ways to Use the Brand - increasing the frequency of
consumption to identify new and different applications
o

Six Types of Defense Strategies

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

Pure monopoly only one firm offers undifferentiated product or


service in an area
Oligopoly a few firms produce essentially identical commodities
and little differentiation exists
Monopolistic competition many firms differentiate items in whole
or part
Pure competition many competitors offer the same product

Position Defense/Defender (most desirable) the simplest


defensive strategy. It simply involves trying to hold your current
position in the market.
Flank Defense it defends its market share by diversifying into
new markets and niche segments.
Preemptive Defense
Counteroffensive Defense a retaliatory strategy. When a
competitor attacks your business, you strike back with your own
attack.
Mobile Defense - involves making constant changes to your
business so that it is difficult for competitors to compete with you.
Contracting Defense (least desirable) it involves retreating
from markets.

Factors Relevant to Pursuing Increased Market Share

Possibility of provoking antitrust action


Economic cost
Pursuing the wrong marketing-mix strategy
The effect of increased market share on actual and perceived
quality

Other Competitive Strategies

Market challengers
o Strategic Objectives and Opponents:
It can attack the market leader
It can attack firms its own size that are not doing
the job and are underfinanced
It can attack small local and regional firms
o General Attack Strategy:
Frontal Attack
Flank Attack
Encirclement Attack
Bypass Attack
Guerilla Attack
o Specific Attack Strategy:
Price discounts
Lower-priced goods
Value-priced goods
Prestige goods
Product proliferation
Product innovation

Improved services
Distribution innovation
Manufacturing-cost reduction
Intensive advertising promotion
Market-followers
o Four Broad Strategies:
1. Counterfeiter duplicates the leaders product and packages
and sells it on the black market or disreputable leaders
2. Cloner emulates the leaders products, name, and
packaging with slight variations
3. Imitator copies some things from the leader but
differentiates on packaging, advertising, pricing, or location
4. Adapter takes the leaders products and adapts or improves
them
Balancing Orientations

Competitor-centered
Customer-centered

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