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kotler11_im - 1 1 CHAPTER DEALING WITH COMPETITION LEARNING...

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LEARNING OBJECTIVESAfter reading this chapter, students should:Know how marketers identify primary competitorsKnow how we should analyze competitors’ strategies, objectives, strengths, andweaknessesKnow how market leaders can expand the total market and defend market shareKnow how market challengers should attack market leadersKnow how market followers or nichers can compete effectivelyCHAPTER SUMMARYTo prepare an effective marketing strategy, a company must study competitors aswell as actual and potential customers. Companies need to identify competitors’strategies, objectives, strengths, and weaknesses.A company’s closest competitors are those seeking to satisfy customers and needsand making similar offers. A company should also pay attention to latentcompetitors, who may offer new or other ways to satisfy the same needs. A companyshould identify competitors by using both industry and market-based analyses.A market leader has the largest market share in the relevant product market. Toremain dominant, the leader looks for ways to expand total market demand, attemptsto 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 aggressivebid 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 that is willing to maintain its market share andnot rock the boat. A follower can play the role of counterfeiter, cloner, imitator, oradapter.A market nicher serves small market segments not being served by larger firms. Thekey to nichemanship is specialization. Nichers develop offerings to fully meet acertain groups of customers’ needs, commanding a premium price in the process.As important as a competitive orientation is in today’s global markets, companiesshould not overdo the emphasis on competitors. They should maintain a goodbalance of consumer and competitor monitoring.330C H A P T E R11DEALING WITHCOMPETITION
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Principles of Information Systems
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Chapter-by-Chapter Instructional MaterialOPENING THOUGHTThis chapter adds an additional element to the complexity of marketing—competitiveanalysis. Students who are having difficulty just understanding consumers and potentialmarkets might begin to be overwhelmed when you add to their load the concept ofunderstanding and predicting competitive responses to marketing’s responsibility! Care shouldbe taken not to over dramatize the importance of monitoring competition, however, manyfirms do not give competitor reactions the attention it merits so some emphasis is needed inteaching marketing to students.A key concept introduced in this chapter is that of market nicher—a specialist in smallmarkets underserved by larger corporations. Many large firms today started out as “nichers”and many large firms of tomorrow are our “nichers” today. The concept of “nichers” and the

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Term
Summer
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Marketing, Nicher
We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
Principles of Information Systems
The document you are viewing contains questions related to this textbook.
Chapter 12 / Exercise 3
Principles of Information Systems
Reynolds/Stair
Expert Verified

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