MARKETING MANAGEMENT
12th edition
11
Dealing with
Competition
11-2
Chapter Questions
• How do marketers identify primary competitors? • How should we 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?
11-3
11-4
11-5
11-6
Industry Concept of Competition
• Number of sellers and degree of
differentiation
• Entry, mobility, and exit barriers
• Cost structure
11-7
Industry Concept of Competition
11-8
11-9
11-10
Analyzing Competitors
Share of market
Share of market
Share of mind
Share of mind
11-11
11-12
Figure 11.5
Hypothetical Market Structure
11-13
Expanding the Total Market
New customers
New customers
11-14
11-15
Figure 11.7
11-16
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
11-17
Other Competitive Strategies
Market
Challengers
Market
Nichers
Market
11-18
Market Challenger Strategies
• Define the strategic objective and
opponents
11-19
General Attack Strategies
Frontal Attack
Encirclement
Attack
Bypass Attack
Flank Attack
11-20
11-21
Specific Attack Strategies
• Price discounts
• Lower-priced goods • Value-priced goods • Prestige goods
• Product proliferation
• Product innovation • Improved services
• Distribution innovation • Manufacturing-cost
reduction
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11-23
Market Follower Strategies
Counterfeiter
Cloner
Imitator
11-24
11-25
Balancing Orientations
Competitor-Centered
11-26
Marketing Debate
How do you attack a Category
Leader?
Take a position:
1. The best way to challenge a leader is to attack its strengths.
2. The best way to attack a leader is
11-27
Marketing Discussion
Pick an industry. Classify firms
according to the four different
roles they might play. How would
you characterize the nature of
competition? Do the firms follow
