10-1

MARKETING MANAGEMENT

Dealing with Competition

10-2

Chapter Questions

• How can a firm choose and

communicate an effective position in

the market?

• What are the implications of market

evolution for marketing strategies?

10-3

Marketing Strategy

SegmentationSegmentation

TargetingTargeting

PositioningPositioning

10-4

Positioning

Designing the company’s

offering and image for

a distinctive place in the mind of

the target market.

10-5

CigarettesCigarettes

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10-22

Positions?

• Pizza places?

• Bars?

• Grocery stores?

10-23

Positioning

10-24

A Positioning Statement

To young, activesoft-drink consumers

with little time for sleep, Mountain Dew

is the soft drink that gives you energybecause it has the most caffeine.

11-25

Ben & Jerry’s

After watching this video,

write a positioning statement

for Ben & Jerry’s

10-26

Defining Associations

Points-of-parity (POPs)

Points-of-difference (PODs)

11-27

Competition isn’t always bad!

Bill Cade’s cricketsBill Cade’s crickets

Furniture industryFurniture industry

Satellite radioSatellite radio

WHEN?WHEN?

11-28

Identifying Competitors

11-29

Hypothetical Market Structure

10%

Market

Nichers

20%

Market

Follower

30%

Market

Challenger

40%

Market

Leader

11-30

Best Market Leader Strategy

New customersNew customers

More usageMore usage

Expanding the Total Market

11-31

Other Competitive Strategies

Market

Challengers

Market

NichersMarket

Followers

11-32

Market Follower Strategies

Counterfeiter

Cloner

Imitator

Adapter

11-33

Market Niche Strategies

11-34

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)

11-35

Balancing Orientations

Competitor-

Centered

Customer-

Centered