Competitive Dynamics Marketing Management
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Transcript of Competitive Dynamics Marketing Management
HOW CAN MARKET LEADERS EXPAND THE TOTAL MARKET AND DEFEND MARKET SHARE
EXPANDING TOTAL MARKET DEMAND
New Customers
More Usage
Shivam Verma || IIT Delhi
NEW CUSTOMERS
Market Penetration Strategy
New Market Segment Strategy
Geographical Expansion Strategy
Shivam Verma || IIT Delhi
MORE USAGE
Additional Opportunities to Use the Brand
New Ways to Use the brand
Shivam Verma || IIT Delhi
PROTECTING THE MARKET SHARE
Proactive MarketingDefensive Marketing
Shivam Verma || IIT Delhi
Proactive Skills Responsive Anticipation Creative Anticipation
Proactive Firms are: Are ready to take risks and make mistakes Have a vision of the future and of investing in it Have the capabilities to innovate Are flexible and nonbureaucratic Have many managers who think proactively
PROACTIVE MARKETING
Shivam Verma || IIT Delhi
DEFENSIVE MARKETING
Six types of defense strategies
Shivam Verma || IIT Delhi
INCREASING MARKET SHARE
The possibility of attracting legal action for violating the competition Act or Antitrust law
Economic Cost
The danger of pursuing the wrong marketing activities
The effect of increased market share on actual and perceived quality
Shivam Verma || IIT Delhi
HOW SHOULD MARKET CHALLENGERS ATTACK MARKET LEADERS
MARKET-CHALLENGER STRATEGIES
Shivam Verma || IIT Delhi
MARKET-CHALLENGER STRATEGIES
Defining the Strategic Objective and Opponents
Choosing a General Attack Strategy
Choosing a Specific Attack Strategy
Shivam Verma || IIT Delhi
DEFINING THE STRATEGIC OBJECTVE AND OPPONENTS(S)
It can attack the Market Leader
It can attack firms its own size that are not doing the job and are underfinanced
It can attack small local and regional firms
Shivam Verma || IIT Delhi
CHOOSING A GENERAL ATTACK STRATEGY
Frontal Attack
Flank Attack
Encirclement Attack
Bypass Attack
Guerrilla Attack
Shivam Verma || IIT Delhi
CHOOSING A SPECIFIC ATTACK STRATEGY
Any aspect of marketing can serve as basis for attack Lower priced products Discounted products New or improved products and services Wide variety of offerings Innovative distribution strategies etc.
Shivam Verma || IIT Delhi
HOW CAN MARKET FOLLOWERS OR NICHERS COMPETE EFFECTIVELY
MARKET-FOLLOWER STRATEGIES
Mark
et
Lead
ersInnovator bears
the expense of developing a new product, getting distribution, educating the marketReward for work and risk- market leadership
Mark
et
Follo
wersCopy or improve
the new productAchieves high profit because no innovation cost
Shivam Verma || IIT Delhi
MARKET-FOLLOWER STRATEGIES
Counterfeiter
Cloner
Imitator
Adapter
Shivam Verma || IIT Delhi
MARKET-NICHER STRATEGIES
Leader in a small market
Large profitable firms also use niching strategies
ROI in smaller markets > larger markets
Nicher achieves high margin, mass marketer achieves high volume
Shivam Verma || IIT Delhi
MARKET-NICHER STRATEGIES
Protecting niches
Expanding
niches
Creating niches
• High risk of drying up• Can weaken the firm => continually create
new ones• Multiple niching • Entrants should focus at niches initially
Shivam Verma || IIT Delhi
MARKET- NICHER STRATEGIES
Nic
he S
peci
alis
t R
ole
s
End-User Specialist
Vertical-Level Specialist
Customer-Size Specialist
Specific-Customer Specialist
Geographic Specialist
Product Line Specialist
Product-Feature Specialist
Job-Shop Specialist
Quality-Price Specialist
Service Specialist
Channel Specialist
Shivam Verma || IIT Delhi
WHAT MARKETING STRATEGIES ARE APPROPRIATE AT EACH STAGE OF THE PRODUCT LIFE CYCLE
PRODUCT LIFE CYCLE
Introduction
Growth
Maturity
Decline
Shivam Verma || IIT Delhi
COMMON PLC PATTERNS
Growth Slump Maturity
Cycle-Recycle Pattern
Scalloped
Shivam Verma || IIT Delhi
STYLE, FASHION AND FAD LIFE CYCLES
Shivam Verma || IIT Delhi
MARKETING STRATEGIES- INTRODUCTION
Inform potential
Induce product trial
Secure distribution
Shivam Verma || IIT Delhi
MARKETING STRATEGIES- INTRODUCTION
Long term Market Leadership Vision of Mass Market Persistence Relentless Innovation Financial Commitment Asset Leaverage
Shivam Verma || IIT Delhi
MARKETING STRATEGIES- GROWTH
Men’s fairness creams such as Fair and Handsome use well known film and cricket stars and offers entertainment, information, and advice in a bid to capture customer attention in a market that is getting increasingly crowded.
Shivam Verma || IIT Delhi
MARKETING STRATEGIES- MATURITY
Market Modification• Expand Number of Users • Increase the Usage rate among Users
Product Modification• Quality Improvement• Feature Improvement
Marketing Program Modification• Price, Distribution• Communication
Shivam Verma || IIT Delhi
MARKETING STRATEGIES- DECLINE
Declining SalesLow Cost
per Customer
Declining Profits Laggards
Shivam Verma || IIT Delhi
HOW SHOULD MARKETERS ADJUST THEIR STRATEGIES AND TACTICS FOR AN ECONOMIC DOWNTURN OR RECESSION
MARKETING IN ECONOMIC DOWNTURN
EXPLORE THE UPSIDE OF INCREASING INVESTMENT
Shivam Verma || IIT Delhi
MARKETING IN ECONOMIC DOWNTURN
GET CLOSER TO CUSTOMERS
Shivam Verma || IIT Delhi
MARKETING IN ECONOMIC DOWNTURN
REVIEW BUDGET ALLOCATIONS
Shivam Verma || IIT Delhi
MARKETING IN ECONOMIC DOWNTURN
PUT FORTH THE MOST COMPELLING VALUE PROPOSITION
Shivam Verma || IIT Delhi
MARKETING IN ECONOMIC DOWNTURN
FINE TUNE BRAND AND PRODUCT OFFERING
Shivam Verma || IIT Delhi
CREDITSAll Photos are taken from google images and Book on ‘Marketing Management’ by Kotler
Shivam Verma || IIT Delhi
THANK YOU
Shivam Verma || IIT Delhi
DisclaimerCreated by Shivam Verma, IIT Delhi, during an internship with Prof. Sameer Mathur,
IIM Lucknow,www.IIMInternship.com ”