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Chapter 6 Dealing with the Competition by

Chapter 6 Dealing with the Competition by. Lecturer by Ung Veasna. Kotler on Marketing. Poor firms ignore their competitors; average firms copy their competitors; winning firms lead their competitors. Competitive Forces. Figure 6-1: Five Forces Determining Segment Structural Attractiveness.

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Chapter 6 Dealing with the Competition by

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  1. Chapter 6Dealing with the Competitionby Lecturer by Ung Veasna

  2. Kotler on Marketing Poor firms ignore their competitors; average firms copy their competitors; winning firms lead their competitors.

  3. Competitive Forces Figure 6-1: Five Forces Determining Segment Structural Attractiveness Threat of: • intense segment rivalry • new entrants • substitute products • buyers’ growing bargaining power • suppliers’ growing bargaining power

  4. Analyzing Competitors • Objectives Figure 6-2: A Competitor’s Expansion Plans

  5. Analyzing Competitors • Strengths and Weaknesses • Dominant • Strong • Favorable • Tenable • Weak • Nonviable

  6. Table 6-1: Customer’s Ratings of Competitors on Key Success Factors

  7. Analyzing Competitors • Three Variables to Monitor When Analyzing Competitors: • Share of market • Share of mind • Share of heart

  8. Designing The Competitive Intelligence System • Four Main Steps • Setting Up the System • Collecting the Data • Evaluating and Analyzing the Data • Disseminating Information and Responding

  9. Designing The Competitive Intelligence System • Selecting Competitors • Customer Value Analysis (CVA) • Customer Value = Customer Benefits – Customer Costs • Customer Benefits = product benefits, service benefits, personnel benefits, image benefits • Customer Costs = purchase price, acquisition costs, usage costs, maintenance costs, ownership costs, disposal costs

  10. Designing The Competitive Intelligence System • Major Steps in Customer Value Analysis: 1. Identify the major attributes customers value. 2. Assess the quantitative importance of the different attributes. 3. Assess the companies’ and competitors’ performances on the different customer values against their rated importance. 4. Examine how customers in a specific segment rate the company’s performance against a specific major competitor on an attribute-by-attribute basis. 5. Monitor customer values over time.

  11. Designing The Competitive Intelligence System • Classes of Competitors • Strong versus Weak • Close versus Distant • “Good” versus “Bad”

  12. Designing Competitive Strategies 1-Market-Leader Strategies • Expanding the Total Market • New Users • Market-penetration strategy • New-market segment strategy • Geographical-expansion strategy • New Uses • More Usage • Defending Market Share

  13. Designing Competitive Strategies Figure 6-1: Six Types of Defense Strategies

  14. Designing Competitive Strategies • Defense Strategies • Position Defense • Flank Defense • Preemptive Defense • Counteroffensive Defense • Mobile Defense • Market broadening • Principle of the objective • Principle of mass • Market diversification • Contraction Defense • Planned contraction (Strategic withdrawal)

  15. Designing Competitive Strategies 2- Market-Challenger Strategies • Defining 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

  16. Choosing a General Attack StrategyFigure 6-3: Attack Strategies

  17. Designing Competitive Strategies • Choosing a Specific Attack Strategy • Price-discount • Lower price goods • Prestige goods • Product proliferation • Product innovation • Improved services • Distribution innovation • Manufacturing cost reduction • Intensive advertising promotion

  18. Designing Competitive Strategies 3- Market-Follower Strategies • Innovative imitation (Product imitation) • Product innovation • Four Broad Strategies: • Counterfeiter • Cloner • Imitator • Adapter

  19. Designing Competitive Strategies 4- Market-Nicher Strategies • High margin versus high volume • Nicher Specialist Roles • End-user specialist • Value-added reseller • Vertical-level specialist • Customer-size specialist

  20. Product-feature specialist • Job-shop specialist • Quality-price specialist • Service specialist • Channel specialist • Specific-customer specialist • Geographic specialist • Product or product-line specialist

  21. Balancing Customer and Competitor Orientations • Competitor-centered company • Customer-centered company

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