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Chapter Questions

Chapter Questions. How do marketers identify primary competitors? How should we analyze competition? strategies, objectives, strengths, and weaknesses How can market leaders expand the total market and defend market share? How should market challengers attack market leaders?

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Chapter Questions

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  1. Chapter Questions • How do marketers identify primary competitors? • How should we analyze competition? • strategies, objectives, strengths, and weaknesses • How can market leaders expand the total market and defend market share? • How should market challengers attack market leaders? • How can market followers compete effectively?

  2. Economic View of Competition Pure Monopoly Oligopoly Monopolistic Competition Pure Competition

  3. Competition isn’t always bad! Bill Cade’s crickets Furniture industry Satellite radio WHEN?

  4. Forces Determining Segment Attractiveness

  5. Identifying Competitors

  6. Analyzing Competitors Share of market Share of mind Share of heart

  7. Hypothetical Market Structure 10% Market Nichers 20% Market Follower 30% Market Challenger 40% Market Leader

  8. Two ways to expand: New customers More usage

  9. Optimal Market Share

  10. Question Why do profits often decrease as market share expands?

  11. Competitive Players Market Challengers Market Nichers Market Followers

  12. Market Follower

  13. Market Niche

  14. 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)

  15. Balancing Orientations Competitor- Centered Customer- Centered

  16. Group Discussion How do you attack a Category Leader? Take a position: • The best way to challenge a leader is to attack its strengths. 2. The best way to attack a leader is to adopt a flanking strategy.

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