Pertemuan Keduapuluhdua Marketing Strategies for Growth Markets 1 Opportunities and Risks in Growth Markets • Opportunities for future profits: – It is easier to gain share when market is growing – Share gains are worth more in a growth market than in a mature market – Price competition is likely to less intense – Early participation in a growth market is necessary to make sure that the firm keeps pace with the technology 2 Marketing Objectives for Share Leaders • • • • Maintaining/improving satisfaction and loyalty Encouraging/simplifying repeat purchase Reducing attractiveness of switching Stimulate selective demand among later adopters by: – Head-to-head positioning against competitive offerings – Differentiated positioning against competitive offerings 3 Strategic Choice for Share Leaders in Growth Markets • Confrontation strategy: – Proactive – Reactive • Contraction or strategic withdrawal • Market expansion • Flanker strategy: – Proactive – reactive 4 Deciding Whom To Attack? • Attack the market share leader within its primary target market • Attack another follower who has an established position within a major market segment • Attack one or more smaller competitors who have only limited resources • Avoid direct attacks on any established competition 5 Conclusions • If the market leader wants to maintain its number-one share position as the product category moves through rapid growth, it must focus on two important objectives: retaining its current customers and stimulating selective demand among later adopters. 6