kotler_mm13e_im_11 - C H A P COMPETITION G WITH T E R...

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NG WITH COMPETITION 11 C H A P T E R LEARNING OBJECTIVES After reading this chapter, students should: Know how marketers identify primary competitors Know how we should analyze competitors’ strategies, objectives, strengths, and weaknesses Know how market leaders can expand the total market and defend market share Know how market challengers should attack market leaders Know how market followers or nichers can compete effectively CHAPTER SUMMARY To prepare an effective marketing strategy, a company must study competitors as well as actual and potential customers. Marketers need to identify competitors’ strategies, objectives, strengths, and weaknesses. A company’s closest competitors are those seeking to satisfy the same customers and needs and making similar offers. A company should also pay attention to latent competitors, who may offer new or other ways to satisfy the same needs. A company should identify competitors by using both industry and market-based analyses. A market leader has the largest market share in the relevant product market. To remain dominant, the leader looks for ways to expand total market demand, attempts to protect its current market share, and perhaps tries to increase its market share. A market challenger attacks the market leader and other competitors in an aggressive bid for more market share. Challengers can choose from five types of general attack; challengers must also choose specific attack strategies. A market follower is a runner-up firm willing to maintain its market share and not rock the boat. A follower can play the role of counterfeiter, cloner, imitator, or adapter. A market nicher serves small market segments not being served by larger firms. The key to nichemanship is specialization. Nichers develop offerings to fully meet a certain group of customers’ needs, commanding a premium price in the process. As important as a competitive orientation is in today’s global markets, companies should not overdo the emphasis on competitors. They should maintain a good balance of consumer and competitor monitoring. DETAILED CHAPTER OUTLINE 1
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Chapter-by-Chapter Instructional Material Building strong brands requires a keen understanding of competition, and competition grows more intense every year. New competition is coming from all directions—from global competitors eager to grow sales in new markets; from online competitors seeking cost- efficient ways to expand distribution; from private label and store brands designed to provide low-price alternatives; and from brand extensions from strong mega-brands leveraging their strengths to move into new categories. One good way to start to deal with competition is through creatively designed and well-executed marketing programs. To effectively, devise and implement the best possible brand positioning strategies, companies must pay keen attention to their competitors. Markets have become too competitive to focus on the consumer alone. COMPETITIVE FORCES
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kotler_mm13e_im_11 - C H A P COMPETITION G WITH T E R...

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