MKT: 601 Chapter 12: Addressing Competition and Driving Growth

1. MKT: 601Chapter 12: Addressing Competition and Driving Growth GROWTH STRATEGIES • Grow by Building Your Market Share • Grow through Developing Committed Customers and Stakeholders • Grow by Developing a Powerful Brand • Grow by Innovating New Products, Services, and Experiences • Grow by International Expansion • Grow by Mergers, Acquisitions, Alliances, and Joint Ventures • Grow by Building an Outstanding Reputation for Social Responsibility • Grow by Partnering with Government and NGOs

2. Competitive Strategies for Market Leader • EXPANDING TOTAL MARKET DEMAND • NEW CUSTOMERS • MORE USAGE • Additional Opportunities to Use the Brand • New Ways to Use the Brand • PROTECTING MARKET SHARE • PROACTIVE MARKETING • A responsive marketer finds a stated need and fills it. • An anticipative marketer looks ahead to needs customers may have in the near future. • A creative marketer discovers solutions customers did not ask for but to which they enthusiastically respond. Creative marketers are proactive market-driving firms, not just market driven ones

3. DEFENSIVE MARKETING Position defense: Get a big position in consumer mind, like UnileverFlank : Increase ad for current and can introduce lower price extensionPreemptive : Attack each and every competitors possibleCounteroffensive : Attack in competitors main groundMobile : Can move to other industry or focus on underlying general needsContraction :Move away from weak area and invest in strong area

4. INCREASING MARKET SHARE Factors to be considered before increasing share • The possibility of provoking antitrust action • Economic cost • Pursuing the wrong marketing-mix strategy • The effect of increased market share on actual and perceived quality

5. MARKET- CHALLENGER STRATEGIESDEFINING THE STRATEGIC OBJECTIVE AND OPPONENT(S) • It can attack the market leader. • It can attack firms of its own size that are not doing the job and are underfinanced. • It can attack small local and regional firms • It can attack the Status quo

6. CHOOSING A GENERAL ATTACK STRATEGIES • Frontal attack: Matching 4P same with leaders • Flank attack: Attack weak spots • Encirclement attack: In each level • Bypass attack: New geography or technology • Guerrilla attack: Small intermittent attack

7. MARKET-FOLLOWER’S STRATEGIES • Cloner (Slight variation) • Imitator (Some strategy) • Adapter(improve)

8. MARKETING STRATEGIES: INTRODUCTION STAGE AND THE PIONEER ADVANTAGE • PIONEERING ADVANTAGES • PIONEERING DRAWBACKS • GAINING A PIONEERING ADVANTAGE • MARKETING STRATEGIES: GROWTH STAGE • MARKETING STRATEGIES: MATURITY STAGE • MARKET MODIFICATION • A company might try to expand the market for its mature brand by working with the two factors that make up sales volume: Volume = number of brand users × usage rate per user

10. PRODUCT MODIFICATION • Quality improvement increases functional performance by launching a “new and improved” product. • Feature improvement adds size, weight, materials, supplements, and accessories that expand the product’s performance, versatility, safety, or convenience. • Style improvement increases the product’s esthetic appeal.

11. MARKETING PROGRAM MODIFICATION • MARKETING STRATEGIES: DECLINE STAGE • Eliminating weak products • Harvesting and divesting • EVIDENCE FOR THE PRODUCT LIFE-CYCLE CONCEPT • CRITIQUE OF THE PRODUCT LIFE-CYCLE CONCEPT • MARKET EVOLUTION