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11Competitive Dynamics
1
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11-2
Chapter Questions 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? How should marketers adjust their strategies and
tactics for an economic downturn or recession?
Figure 11.1 Hypothetical Market Structure
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11-3
Expanding the Total Market
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11-4
New Ways to Use a Brand
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11-5
Protecting Market Share
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Responsive anticipation
Creative anticipation
Figure 11.2 Types of Defense Strategies
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11-7
Figure 11.3 The Concept of Optimal Market Share
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Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11-9
Market Challenger Strategies
Define the strategic objective and opponents Choose a general attack strategy Choose a specific attack strategy
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11-10
General Attack Strategies
Frontal attack Flank attack Encirclement attack Bypass attack Guerilla warfare
Specific Attack Strategies
Price discounts Lower-priced goods Value-priced goods Prestige goods Product
proliferation Product innovation
Improved services Distribution
innovation Manufacturing-cost
reduction Intensive
advertising promotion
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11-11
Market Follower Strategies
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Market Nicher Strategies
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Niche Specialist Roles
End-User Specialist Vertical-Level
Specialist Customer-Size
Specialist Specific-Customer
Specialist Geographic
Specialist
Product-Line Specialist
Job-Shop Specialist
Quality-Price Specialist
Service-Specialist Channel Specialist
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11-14
Product Life Cycles
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Figure 11.4 Sales and Profit Life Cycles
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Figure 11.5a Common PLC Patterns: Growth-Slump-Maturity
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Figure 11.5bCommon PLC Patterns: Cycle-Recycle
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Figure 11.5c Common PLC Patterns: Scalloped
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Figure 11.6 Style, Fashion, and Fad Life Cycles
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Maintaining a Market Advantage: Trivial Pursuit
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Strategies for Developing a Pioneer Advantage
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Growth Stage Strategies
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Electrolux
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Changing Brand Course
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Market Modification
Product Modification
Marketing Program Modification
Decline
Declining sales Low cost per customer Declining profits Laggards
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Marketing in an Economic Downturn
Invest Get close to
customers Review budgets Use a compelling
value proposition Fine-tune offerings
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A Compelling Value Proposition
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For Review 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? How should marketers adjust their strategies and
tactics for an economic downturn or recession?
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11-29
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