MARKETING MANAGEMENT
Dealing with
Competition
10-1
Chapter Questions
• How can a firm choose and
communicate an effective
positioning in the market?
• What are the implications of market
evolution for marketing strategies?
10-2
Marketing Strategy
Segmentation
Targeting
Positioning
10-3
Positioning
Designing the company’s
offering and image for
a distinctive place in the mind of
the target market.
10-4
Cigarettes
Cigarettes
10-5
10-6
10-7
10-8
10-9
10-10
10-11
10-12
10-13
10-14
10-15
10-16
10-17
10-18
10-19
10-20
Positions?
• Pizza places?
• Bars?
• Grocery stores?
10-21
Positioning
10-22
10-23
A Positioning Statement
To young, active
soft-drink consumers
with little time for sleep,
Mountain Dew
is the soft drink that gives you energy
because it has the most caffeine.
10-24
Defining Associations
Points-of-parity (POPs)
Points-of-difference (PODs)
10-25
Consumer Desirability Criteria
Relevance
Distinctiveness
Believability
10-26
Image Differentiation
10-27
Competition isn’t always bad!
Bill Cade’s crickets
Furniture industry
Satellite radio
WHEN?
11-28
Five Forces Determining Segment
Structural Attractiveness
11-29
Identifying Competitors
11-30
Hypothetical Market Structure
10%
20%
Market Market
Nichers Follower
30%
Market
Challenger
40%
Market
Leader
11-31
Expanding the Total Market
New customers
More usage
11-32
Optimal Market Share
11-33
Question
Why can profits decrease
as market share expands?
11-34
Other Competitive Strategies
Market
Challengers
Market
Followers
Market
Nichers
11-35
Fast Food Study
• McDonald’s is the market leader
• The “lighting rod” of criticism
• 1986 Hardee’s tries lower fat, no one follows.
• April 1991 McDonald’s introduces McLean
• July KFC and Arbys’ low fat products
• 2000 Subway becomes niche player
(sandwiches)
11-36
Market Follower Strategies
Counterfeiter
Cloner
Imitator
Adapter
11-37
Market Niche Strategies
11-38
Balancing Orientations
CompetitorCentered
CustomerCentered
11-39