MARKETING MANAGEMENT
12th edition
11
Dealing with Competition
Kotler
Keller
Chapter Questions
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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
effectively?
11-2
Figure 1.1 Five Forces Determining
Segment Structural Attractiveness
Potential entrants
 Suppliers
 Buyers
 Industry competitors
 Substitutes
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11-3
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
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11-4
Industry Concept of Competition
Pure monopoly
 Oligopoly
 Monopolistic competition
 Pure competition
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11-5
Analyzing Competitors
Share of market
 Share of mind
 Share of heart
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11-6
Expanding the Total Market
New customers
 More usage
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11-7
Figure 11.6 Six Types of
Defense Strategies
Defender
 Flank
 Preemptive
 Counteroffensive
 Mobile
 Contraction
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11-8
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
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11-9
Other Competitive Strategies
Market challengers
 Market followers
 Market nichers
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11-10
Market Challenger Strategies
Define the strategic objective and
opponents
 Choose a general attack strategy
 Choose a specific attack strategy
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11-11
General Attack Strategies
Frontal attack
 Flank attack
 Encirclement attack
 Bypass attack
 Guerrilla warfare
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11-12
Specific Attack Strategies
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Price discounts
Lower-priced goods
Value-priced goods
Prestige goods
Product proliferation
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Product innovation
Improved services
Distribution innovation
Manufacturing-cost
reduction
Intensive advertising
promotion
11-13
Market Follower Strategies
Counterfeiter
 Cloner
 Imitator
 Adaptor
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11-14
Balancing Orientations
Competitor-centered
 Customer-centered
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11-15