ch11 dealing with competition gianan
DESCRIPTION
MarkMaTRANSCRIPT
http://marikachavez.blogspot.com
Top 10 Learning Questions for
Chapter 11DEALING WITH COMPETITION
Oamar Nanaig GiananDecember 29, 2011
V56 Marketing Class ofProf. Remigio Joseph De Ungria
Chapter 11 Marketing Management, Kotler 14th ed
http://www.slideshare.net/maogianan
http://marikachavez.blogspot.com
1. Which of the 5 forces determining market segment attractiveness is applicable where consumers have access to alternative products and services which would essentially satisfy the consumers' needs?
A. Threat of intense segment rivalry.B. Threat of new entrants.C. Threat of substitute products.D. Threat of buyers’ growing bargaining power.E. Threat of suppliers’ growing bargaining power.
http://www.slideshare.net/maogianan
http://marikachavez.blogspot.com
http://www.slideshare.net/maogianan
1. The Five Forces Determining Segment Structural Attractiveness according to Michael Porter.
Industry Competitors(Segment rivalry)
Potential Entrants(Threat of mobility)
Buyers(Buyer power)
Substitutes(Threat of substitutes)
Suppliers(Supplier power)
http://marikachavez.blogspot.com
http://www.slideshare.net/maogianan
1. The Five Forces Determining Segment Structural Attractiveness according to Michael Porter.
Industry Competitors(Segment rivalry)
Potential Entrants(Threat of mobility)
Buyers(Buyer power)
Substitutes(Threat of substitutes)
Suppliers(Supplier power)
A segment is unattractive when there are actual or
potential substitutes for the
product. Substitutes place a limit on prices and
profits
A segment is unattractive when there are actual or
potential substitutes for the
product. Substitutes place a limit on prices and
profits
http://marikachavez.blogspot.com
http://www.slideshare.net/maogianan
1. The Five Forces Determining Segment Structural Attractiveness according to Michael Porter.
Industry Competitors(Segment rivalry)
Potential Entrants(Threat of mobility)
Buyers(Buyer power)
Substitutes(Threat of substitutes)
Suppliers(Supplier power)
Buyers posses strong bargaining
power, which gives buyers more
power to negotiate.
Buyers posses strong bargaining
power, which gives buyers more
power to negotiate.
Segment is attractive if competition cannot
come in easily
Segment is attractive if competition cannot
come in easily
Suppliers can raise prices or reduce supplies for the segment’s raw
materials.
Suppliers can raise prices or reduce supplies for the segment’s raw
materials.
If the segment already has lots of strong or aggressive players, it is unattractive.
If the segment already has lots of strong or aggressive players, it is unattractive.
http://marikachavez.blogspot.com
1. Which of the 5 forces determining market segment attractiveness is applicable where consumers have access to alternative products and services which would essentially satisfy the consumers' needs?
A. Threat of intense segment rivalry.B. Threat of new entrants.C. Threat of substitute products.D. Threat of buyers’ growing bargaining power.E. Threat of suppliers’ growing bargaining power.
http://www.slideshare.net/maogianan
http://marikachavez.blogspot.com
2. Which is a more attractive scenario for a new company to venture into a market segment?
A. Segment has high entry barrier, and high exit barrier.
B. Segment has high entry barrier, and low exit barrier.
C. Segment has low entry barrier, and high exit barrier.
D. Segment has low entry barrier, and low exit barrier.
http://www.slideshare.net/maogianan
http://marikachavez.blogspot.com
2. Entry and Exit barriers
http://www.slideshare.net/maogianan
Industries differ greatly in ease of entry. Major entry barriers include high capital requirements; economies of scale; patents & licensing; scarce locations; raw materials.
Exit barriers also exist.Legal or moral obligations to customers, creditors and employees; government restrictions; low asset-salvage; lack of alternative opportunities; high vertical integration.
High Entry barrier Low exit barrier
The most attractive segment is when few new firms can enter the
industry, and poor-performing firms can exit easily
http://marikachavez.blogspot.com
2. Entry and Exit barriers
http://www.slideshare.net/maogianan
High Entry barrier High exit barrier
Low Entry barrier Low exit barrier
Low Entry barrier High exit barrier
Profit potential is high, but firms face more risk because poorer-performing
firms stay and fight it out
Firms easily enter and leave industry; returns are stable and low
The worst: Firms enter during good times but find it hard to leave during
bad times.
http://marikachavez.blogspot.com
2. Which is a more attractive scenario for a new company to venture into a market segment?
A. Segment has high entry barrier, and high exit barrier.
B. Segment has high entry barrier, and low exit barrier.
C. Segment has low entry barrier, and high exit barrier.
D. Segment has low entry barrier, and low exit barrier.
http://www.slideshare.net/maogianan
http://marikachavez.blogspot.com
3. What type of competition is exhibited by the local telco companies: PLDT, Globe, Digitel?
http://www.slideshare.net/maogianan
A. Pure monopolyB. OligopolyC. Monopolistic competitionD. Pure competition
http://marikachavez.blogspot.com
3. Industry Concept of Competition
http://www.slideshare.net/maogianan
1. Pure Monopoly2. Oligopoly
• A small number of large firms offer relatively the same product/service.
• Such companies find it hard to charge higher than the going price.
• Gaining competitive advantage is by reducing internal costs.3. Monopolistic competition4. Pure competition
http://marikachavez.blogspot.com
3. Industry Concept of Competition
http://www.slideshare.net/maogianan
1. Pure Monopoly• Only one firm provides a certain product or service in a certail area.• If monopolist is unregulated, it can charge higher prices for minimal cost
of service/product• A regulated monopolist is required to charge at lower margins as a
matter of public interest.2. Oligopoly3. Monopolistic competition
• Many competitots are able to differentiate their offers in whole or in part (restaurants, beaty shops)
4. Pure competition• No basis for differentiation. (Commodities market)
http://marikachavez.blogspot.com
3. What type of competition is exhibited by the local telco companies: PLDT, Globe, Digitel?
http://www.slideshare.net/maogianan
A. Pure monopolyB. OligopolyC. Monopolistic competitionD. Pure competition
http://marikachavez.blogspot.com
http://www.slideshare.net/maogianan
4. In analyzing competitors, a competitor has "Share of ____" when consumers name the competitor as their preferred company to buy a product from?
A. Share of marketB. Share of mindC. Share of heart
http://marikachavez.blogspot.com
4. Variables in analyzing competition
http://www.slideshare.net/maogianan
Share of market Share of mind Share of heart
The competitor’s share of the target market
The percentage of customers who named the competitor in responding to the statement: “Name the first company that comes to mind in this industry”
The percentage of customers who named the competitor in responding to the statement: “Name the company from which you would prefer to buy the product”
http://marikachavez.blogspot.com
http://www.slideshare.net/maogianan
4. In analyzing competitors, a competitor has "Share of ____" when consumers name the competitor as their preferred company to buy a product from?
A. Share of marketB. Share of mindC. Share of heart
http://marikachavez.blogspot.com
http://www.slideshare.net/maogianan
5. In expanding the total market, firms can devise this strategy to get customers who use the competitor’s products.
A. Market penetration strategyB. New-market segment strategyC. Geographical-expansion strategy
http://marikachavez.blogspot.com
http://www.slideshare.net/maogianan
5. Expanding the Total Market
NEW CUSTOMERS Companies can search for new users among 3 groups:•Those who might use it but do not (market penetration strategy)•Those who have never used it (new market strategy)•Those who live elsewhere (geographical expansion strategy)
http://marikachavez.blogspot.com
http://www.slideshare.net/maogianan
5. In expanding the total market, firms can devise this strategy to get customers who use the competitor’s products.
A. Market penetration strategyB. New-market segment strategyC. Geographical-expansion strategy
http://marikachavez.blogspot.com
http://www.slideshare.net/maogianan
6. In expanding the total market, what strategy is being used by these companies? Oral-B indicator; BRITA water purifiers.
A. New CustomersB. More Usage
http://marikachavez.blogspot.com
http://www.slideshare.net/maogianan
6. Expanding the Total Market
NEW CUSTOMERS
MORE USAGE
Companies can search for new users among 3 groups:•Those who might use it but do not (market penetration strategy)•Those who have never used it (new market strategy)•Those who live elsewhere (geographical expansion strategy)
Usage can be increased by:•Increasing the level or quantity of consumptions•Increasing the frequency of consumption
http://marikachavez.blogspot.com
http://www.slideshare.net/maogianan
6. Expanding the Total Market
MORE USAGEUsage can be increased by:•Increasing the level or quantity of consumptions•Increasing the frequency of consumption
Cartridge must be replaced when bars are empty
Brush must be replaced when blue strip has faded
http://marikachavez.blogspot.com
http://www.slideshare.net/maogianan
6. In expanding the total market, what strategy is being used by these companies? Oral-B indicator; BRITA water purifiers.
A. New CustomersB. More Usage
http://marikachavez.blogspot.com
http://www.slideshare.net/maogianan
7. Which defense strategy did PAL use against Cebu Pacific in acquiring and restructuring Airphil Express?
A. Position DefenseB. Flank DefenseC. Preemptive DefenseD. Counter-offensive defenseE. Mobile defenseF. Contraction defense
http://marikachavez.blogspot.com
http://www.slideshare.net/maogianan
7. Defending Market Share
DEFENDER
(1)Position
(2) Flank
(5) Mobile
(3) Pre-emptive
(4) Counter-offensive
ATTACKER
http://marikachavez.blogspot.com
http://www.slideshare.net/maogianan
7. Defending Market Share
(2) Flank
Market leader should erect outposts to protect a weak front.
http://marikachavez.blogspot.com
Premium
http://www.slideshare.net/maogianan
7. Defending Market Share
Budget
Note: Strategy was a little too late though as CEB already ate up PALs market dhare for domestic flights
http://marikachavez.blogspot.com
http://www.slideshare.net/maogianan
7. Which defense strategy did PAL use against Cebu Pacific in acquiring and restructuring Airphil Express?
A. Position DefenseB. Flank DefenseC. Preemptive DefenseD. Counter-offensive defenseE. Mobile defenseF. Contraction defense
http://marikachavez.blogspot.com
http://www.slideshare.net/maogianan
8. What kind of attack are "Price Wars"?
A. Frontal attackB. Flank attackC. Encirclement attackD. Bypass attackE. Guerilla attack
http://marikachavez.blogspot.com
http://www.slideshare.net/maogianan
8. Attack Strategies
1. Frontal Attack• Attacker matches opponent’s product, advertising, price and distribution.
2. Flank Attack• Targeted at enemy’s weak spots.
3. Encirclement Attack • “Blitz”. Launching a grand offensive on all fronts.
4. Bypass Attack• Indirect strategy where attack is done on easier markets to broaden one’s
resource base5. Guerilla Attack
• Small, intermittent attacks meat to harass, demoralize competitor.
http://marikachavez.blogspot.com
http://www.slideshare.net/maogianan
8. What kind of attack are "Price Wars"?
A. Frontal attackB. Flank attackC. Encirclement attackD. Bypass attackE. Guerilla attack
http://marikachavez.blogspot.com
http://www.slideshare.net/maogianan
9. The "Halo Effect" generated by Apple's mobile devices (iPod, iPhone, iPad) is a good example of which kind of attack on the PC industry?A. Frontal attackB. Flank attackC. Encirclement attackD. Bypass attackE. Guerilla attack
http://marikachavez.blogspot.com
http://www.slideshare.net/maogianan
9. Attack Strategies
1. Frontal Attack• Attacker matches opponent’s product, advertising, price and distribution.
2. Flank Attack• Targeted at enemy’s weak spots.
3. Encirclement Attack • “Blitz”. Launching a grand offensive on all fronts.
4. Bypass Attack• Indirect strategy where attack is done on easier markets to broaden one’s
resource base5. Guerilla Attack
• Small, intermittent attacks meat to harass, demoralize competitor.
http://marikachavez.blogspot.com
http://www.slideshare.net/maogianan
9. Halo Effect
Customers buying iPods are also buying Macs(http://www.macobserver.com/tmo/article/Analysts_Agree_Apples_Halo_Effect_Might_Be_the_Real_Deal/)
http://marikachavez.blogspot.com
http://www.slideshare.net/maogianan
9. The "Halo Effect" generated by Apple's mobile devices (iPod, iPhone, iPad) is a good example of which kind of attack on the PC industry?A. Frontal attackB. Flank attackC. Encirclement attackD. Bypass attackE. Guerilla attack
http://marikachavez.blogspot.com
http://www.slideshare.net/maogianan
10. Tokai, Guyatone, Photogenic, Greco are electric guitar manufacturers. Which Market-follower strategy?
A. CounterfeiterB. ClonerC. ImitatorD. Adapter
http://marikachavez.blogspot.com
http://www.slideshare.net/maogianan
10. Market-Follower strategy
1. Counterfeiter• Counterfeiter duplicates the leader’s product and packaging and sells it
under the guise that it is an original product.2. Cloner
• Emulates products, name and packaging with slight variations.3. Imitator
• Copies things but maintains differentiation in terms of packaging, advertising, pricing or location
4. Adapter• Takes leader’s product and adapts or improves on them
http://marikachavez.blogspot.com
http://www.slideshare.net/maogianan
10. Market-Follower strategy
Gibson SG
Fender Stratocaster
Gibson Les Paul
Tokai SG
GrecoStrat
PhotogenicLes Paul
http://marikachavez.blogspot.com
http://www.slideshare.net/maogianan
10. Tokai, Guyatone, Photogenic, Greco are electric guitar manufacturers. Which Market-follower strategy?
A. CounterfeiterB. ClonerC. ImitatorD. Adapter
http://marikachavez.blogspot.com
Top 10 Learning Questions for
Chapter 11DEALING WITH COMPETITION
Oamar Nanaig GiananDecember 29, 2011
V56 Marketing Class ofProf. Remigio Joseph De Ungria
Chapter 11 Marketing Management, Kotler 14th ed
http://www.slideshare.net/maogianan