MARKETING MANAGEMENT
12
thedition
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?
How can market followers or nichers compete
11-3
Figure 1.1 Five Forces Determining Segment Structural Attractiveness
Potential entrants Suppliers
Buyers
11-4
Industry Concept of Competition
Number of sellers and degree of
differentiation
Entry, mobility, and exit barriers Cost structure
11-5
Industry Concept of Competition
Pure monopoly Oligopoly
11-6
Analyzing Competitors
11-7
Expanding the Total Market
11-8
Figure 11.6 Six Types of
Defense Strategies
Defender Flank
Preemptive
Counteroffensive Mobile
11-9
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
11-10
Other Competitive Strategies
Market challengers Market followers
11-11
Market Challenger Strategies
Define the strategic objective and
opponents
11-12
General Attack Strategies
Frontal attack Flank attack
Encirclement attack Bypass attack
11-13
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
11-14
Market Follower Strategies
Counterfeiter Cloner
11-15
