1. Dealing with Competition
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2. Outline
• How do marketers identify primary
competitors?
• How should we analyze competitors’
strategies, objectives, strengths,
and weaknesses?
• How can market leaders expand the
total market and defent market
share?
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3. Outline
• How should market challengers
attack market leaders?
• How can market followers or
nichers compete effectively?
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4. 5 Competitive Forces
New entrant
Buyers Segment Rivalry Suppliers
Substitute
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5. Industry Concept of Competition
1. # of sellers and degree of differentiation
2. Entry, Mobility and Exit Barriers
3. Cost Structure
4. Degree of Vertical Integration
5. Degree of Globalization
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6. Strategic Groups
h
i
g
h
narrow line
moderate line
quality
l
full line
o broad line
w
Base on Vertical Integration
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7. Customer’s Rating of Competitor’s
on key Success factors
Product
Technical Availability
Assistance
Product
Selling Staff quality
Customer
awareness
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8. Strengths & Weaknesses
3 Variables
Share of market
Share of mind Share of heart
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9. Hypothetical Market Structure
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10. 6 types of Defense Strategies
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11. Optimal Market Share
Probability might fall
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12. Other Competitive Strategies
Market
challengers
Market
Followers
Market
Nichers
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13. Market Challengers
Strategeties
Choose a General Attack
Define
Strategic
Choose a Specific Attack
Objectives
and
Opponents
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14. General Attack Strategies
Frontal Attack
Flank Attack
Encirclement Attack
Bypass Attack
Guerrilla Attack
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15. Specific Attack Strategies
Product Product
Proliferation Innovation
Improved
Services
Value
Priced Distribution
Goods innovation
Value Prestige
Priced Goods Manufacturing
Goods cost reduction
advertising
Price
discount
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16. Market Follower Strategies
Counterfeiter
Cloner
Imitator
Adapter
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17. Niche Specialist Roles
End user Specialist
Vertical level
Customer Size
Specific Customer
Geographic
Product line
Job-shop
Quality Price
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18. Niche Specialist Roles
Service Specialist
Channel Specialist
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19. Balancing
Competitive Customer
Strategies for and
Market Competitor
Orientation
Competitive
Forces
Analyzing
competitors Other
Competitive
Strategies
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20. COMPETITIVE STRATEGIES PLAYER as COMPETITION
Mind as Share of mind
Shoot as Market Challenger
Heart as Share of heart
Pass as Market Nichers
Market as Share of Market
Set Play as Market Followers

21. Crafting the Brand
Positioning
Jerold I. Saddi
May 3, 2012
http://jeroldsaddi.blogspot.com/

22. Intro
a. What are the industry concepts of
competition?
b. How to analyze competitors?
c. How to expand, protect and
increase market share?
d. What are the other competitive
strategies?
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23. Industry Concept of
Competition
No. of sellers and degree of
differentiation
Entry, mobility, and exit barriers
Cost
Vertical integration
Globalization
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24. Analyzing Competitors
2 tools on how to analyze competitors
1. Swot Analysis
2. Competitor Matrix
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25. Strengths and Weaknesses
…maybe attributed in buying
a book.
Profit
Share of Market
Mine bomb
Share of Mind
Share of Heart
Shared
heart
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26. Expanding Total Market
Demand
a. Look for new customers
a. Increase product usage
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27. Protecting Market Share
Shield
Continuous Innovation
Proactive Marketing
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28. Defensive Marketing
…like playing a softball…
a. Position Defense
b. Flank Defense
c. Pre-emptive Defense
d. Counteroffensive Defense
e. Mobile Defense
f. Contraction Defense
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29. Increasing Market Share
..like buying a condom..
Factors that need to be considered:
1. The possibility of provoking antitrust
action
TRUST
Condom
2. Economic cost
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30. 3. The danger of pursuing the wrong
marketing activities
4. The effect of increased market
share on actual and perceived
quality
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31. Other Competitive
Strategies
a. Market Challenger
b. Market Followers
c. Market Nichers
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32. Market Challengers
Strategies:
a. Define the strategic objective and
opponent(s)
i. Market Leader
ii. Own size
iii. Small local and regional firms
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33. Choosing a General Attack Strategy
a. Frontal Attack
b. Flank Attack
c. Encirclement Attack
d. Bypass Attack
e. Guerrilla Attacks
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34. Market-Follower Strategies
a. Counterfeiter
b. Cloner
c. Imitator
d. Adapter
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35. Summary
COMPETITOR
SWOT
MATRIX
Profit
Mine bomb
Shared
heart
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36. Crafting the Brand
Positioning
Jerold I. Saddi
May 3, 2012
http://jeroldsaddi.blogspot.com/