1
11
Competitive Dynamics
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?
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
11-2
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
Responsive anticipation
Creative anticipation
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
11-6
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
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
11-8
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
11-9
General Attack Strategies
Frontal attack
Flank attack
Encirclement attack
Bypass attack
Guerilla warfare
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
11-10
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
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
11-12
Market Nicher Strategies
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
11-13
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
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
11-15
Figure 11.4 Sales and
Profit Life Cycles
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
11-16
Figure 11.5a
Common PLC Patterns:
Growth-Slump-Maturity
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
11-17
Figure 11.5b
Common PLC Patterns:
Cycle-Recycle
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
11-18
Figure 11.5c
Common PLC Patterns:
Scalloped
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
11-19
Figure 11.6 Style, Fashion, and
Fad Life Cycles
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
11-20
Maintaining a Market Advantage:
Trivial Pursuit
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
11-21
Strategies for Developing a
Pioneer Advantage
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
11-22
Growth Stage Strategies
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
11-23
Electrolux
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
11-24
Changing Brand Course
Market Modification
Product Modification
Marketing Program
Modification
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
11-25