11-1 chapter questions how do marketers identify primary competitors? how should we analyze...
Post on 21-Dec-2015
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TRANSCRIPT
11-1
Chapter Questions
• How do marketers identify primary competitors?
• How should we analyze competition?
– 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 compete effectively?
11-2
Economic View of Competition
Pure MonopolyPure Monopoly
OligopolyOligopoly
Monopolistic CompetitionMonopolistic Competition
Pure CompetitionPure Competition
11-3
Competition isn’t always bad!
Bill Cade’s cricketsBill Cade’s crickets
Furniture industryFurniture industry
Satellite radioSatellite radio
WHEN?WHEN?
11-4
Forces Determining Segment Attractiveness
11-5
Identifying Competitors
11-6
Analyzing Competitors
Share of marketShare of market
Share of mindShare of mind
Share of heartShare of heart
11-7
Hypothetical Market Structure
10%
Market
Nichers
20%
Market
Follower
30%
Market
Challenger
40%
Market
Leader
11-8
Two ways to expand:
New customersNew customers
More usageMore usage
11-9
Optimal Market Share
11-10
Question
Why do profits often decrease
as market share expands?
11-11
Competitive Players
Market
Challengers
Market
NichersMarket
Followers
11-12
Market Follower
11-13
Market Niche
11-14
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)
11-15
Balancing Orientations
Competitor-
Centered
Customer-
Centered
11-16
Group Discussion
How do you attack a Category Leader?
Take a position:
1. The best way to challenge a leader is to
attack its strengths.
2. The best way to attack a leader is
to adopt a flanking strategy.