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MARKETING MANAGEMENT. Dealing with Competition. Chapter Questions. How can a firm choose and communicate an effective positioning in the market? What are the implications of market evolution for marketing strategies?. Marketing Strategy. Segmentation. Targeting. Positioning. Positioning.
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MARKETING MANAGEMENT Dealing with Competition
Chapter Questions • How can a firm choose and communicate an effective positioning in the market? • What are the implications of market evolution for marketing strategies?
Marketing Strategy Segmentation Targeting Positioning
Positioning Designing the company’s offering and image for a distinctive place in the mind of the target market.
Cigarettes Cigarettes
Positions? • Pizza places? • Bars? • Grocery stores?
A Positioning Statement To young, active soft-drink consumers with little time for sleep, Mountain Dew is the soft drink that gives you energy because it has the most caffeine.
Points-of-parity (POPs) Points-of-difference (PODs) Defining Associations
Consumer Desirability Criteria Relevance Distinctiveness Believability
Competition isn’t always bad! Bill Cade’s crickets Furniture industry Satellite radio WHEN?
Hypothetical Market Structure 10% Market Nichers 20% Market Follower 30% Market Challenger 40% Market Leader
Expanding the Total Market New customers More usage
Question Why can profits decrease as market share expands?
Other Competitive Strategies Market Challengers Market Nichers Market Followers
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)
Market Follower Strategies Counterfeiter Cloner Imitator Adapter
Balancing Orientations Competitor- Centered Customer- Centered