m mdealing withcompetition

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Dealing with Competition Marketing Management, 13 th ed 11

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Page 1: M mdealing withcompetition

Dealing with Competition

Marketing Management, 13th ed

11

Page 2: M mdealing withcompetition

Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 11-2

Chapter Questions

• How do marketers identify primary competitors?

• How should we analyze competitors’ strategies, objectives, strengths, and weaknesses?

• How can market leaders expand the total market and defend market share?

Page 3: M mdealing withcompetition

Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 11-3

Chapter Questions (cont.)

• How should market challengers attack market leaders?

• How can market followers or nichers compete effectively?

Page 4: M mdealing withcompetition

Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 11-4

Figure 1.1 Five Forces Determining Segment Structural Attractiveness

Page 5: M mdealing withcompetition

Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 11-5

Industry Concept of Competition

• Number of sellers and degree of differentiation

• Entry, mobility, and exit barriers

• Cost structure

• Degree of vertical integration

• Degree of globalization

Page 6: M mdealing withcompetition

Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 11-6

Figure 11.2 Strategic Groups

Page 7: M mdealing withcompetition

Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 11-7

Figure 11.4 A Competitor’s Expansion Plans

Page 8: M mdealing withcompetition

Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 11-8

Table 11.1 Customer Ratings of Competitors on Key Success Factors

Page 9: M mdealing withcompetition

Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 11-9

Strengths and Weaknesses

Share of marketShare of market

Share of mindShare of mind

Share of heartShare of heart

Page 10: M mdealing withcompetition

Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 11-10

Table 11.2 Market Share, Mind Share, and Heart Share

Page 11: M mdealing withcompetition

Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 11-11

Figure 11.5 Hypothetical Market Structure

10%

Market

Nichers

20%

Market

Follower

30%

Market

Challenger

40%

Market

Leader

Page 12: M mdealing withcompetition

Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 11-12

Figure 11.6 Six Types of Defense Strategies

Page 13: M mdealing withcompetition

Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 11-13

Figure 11.7 Optimal Market Share

Page 14: M mdealing withcompetition

Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 11-14

Other Competitive Strategies

Market

Challengers

Market

NichersMarket

Followers

Page 15: M mdealing withcompetition

Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 11-15

Market Challenger Strategies

• Define the strategic objective and opponents

• Choose a general attack strategy

• Choose a specific attack strategy

Page 16: M mdealing withcompetition

Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 11-16

General Attack Strategies

Frontal Attack

Encirclement

AttackBypass Attack

Flank Attack

Guerrilla Warfare

Page 17: M mdealing withcompetition

Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 11-17

Specific Attack Strategies

• Price discounts• Lower-priced goods• Value-priced goods• Prestige goods• Product proliferation• Product innovation

• Improved services• Distribution

innovation• Manufacturing-cost

reduction• Intensive advertising

promotion

Page 18: M mdealing withcompetition

Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 11-18

Market Follower Strategies

Counterfeiter

Cloner

Imitator

Adapter

Page 19: M mdealing withcompetition

Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall 11-19

Niche Specialist Roles

• End-User Specialist• Vertical-Level

Specialist• Customer-Size

Specialist• Specific-Customer

Specialist• Geographic

Specialist

• Product-Line Specialist

• Job-Shop Specialist• Quality-Price

Specialist• Service-Specialist• Channel Specialist