marketing competition

8/14/2019 Marketing Competition

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PARAMJIT SHARMA 1

Marketing Competition


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PARAMJIT SHARMA 2


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PARAMJIT SHARMA 3


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PARAMJIT SHARMA 4

Market Competition is a Contest between individuals, groups,or Organizations for territory, a niche, or a location ofresources. It arises whenever at least two parties strive for agoal which cannot be shared.


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PARAMJIT SHARMA 5

Business is often associated with competition as mostcompanies are in competition with at least one other firmover the same group of customers


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PARAMJIT SHARMA 6


Poor firms ignore their competitors


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PARAMJIT SHARMA 7


Average firms copy their competitors


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PARAMJIT SHARMA 8


Winning Firms lead their competitors


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9

Marketing Competition- issues

Primary Competitors

Ascertaining their Strategies, Strengths.

Designing Competitive Intelligence

Positioning as LeaderFollower

Balancing Customer- Competitor Orientation


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PARAMJIT SHARMA 10

Competitive Forces

1. Threat of Intense Segment Rivalry

2. Threat of New Entrants

3 Threat of Substitutes

4 Threat of Buyers Growing Bargaining power

5 Threat of Supplier's Growing Bargaining Power
http://blog.badgeville.com/wp-content/uploads/2011/12/Ram-Flight.jpg


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PARAMJIT SHARMA 11

Segment Attractiveness- five forces

Industry CompSegment Rivalry

BuyersSuppliers

PotentialEntrants

Substitutes


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PARAMJIT SHARMA 12

Identifying Competitors

Industry Concept Market Concept


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PARAMJIT SHARMA 13

Identifying Competitors

Industry Concept


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PARAMJIT SHARMA 14

Industry Concept

Infosys TCS

Cognizant WIPRO

Product Differentiation

Cost

Vertical Integration

Degree of Globalization


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PARAMJIT SHARMA 15

Market Competition

Market Concept


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PARAMJIT SHARMA 16

Market Conceptmeeting needs of same Customer

MultiplexSingleScreen


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PARAMJIT SHARMA 17

ANALYSING

COMPETITORS

StrategiesObjectives

Strengths & Weaknesses

Reactions Patterns


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Strategic Groups in the Major Appliance Industry

VerticalIntegrationHigh Low

LowQuality

HighQuality Group A------1Narrow Line

Low CostHigh ServiceHigh Price

Group C------4Moderate Line

Medium Mfg. CostMedium ServiceMedium Price

ServiceMedium PriceGroup B------3

Full LineLow Mfg. CostMedium Price

Good Service

Group D------2Broad LineMedium Mfg. CostLow PriceLow Service


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PARAMJIT SHARMA 19

Objectives- Competitors Plan

Individual Commercial EducationaUsersl

PC

HardWare

Software

Dell


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PARAMJIT SHARMA 20

Customer Product Product Technical Selling Awareness Quality Availability Assistance Staff

Competitor A E E P P G

Competitor B G G E G E

Competitor C F P G F F

WHERE E=Excellent G is Good F is fair and P is poor

Customers Rating of Competitors


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Analyzing Competitors- SW

Share of MarketShare of MindShare of Heart

07 08 09 07 08 09 07 08 09

50%

%

47% 44% 60% 58% 54% 45% 42% 39%

30 34 37 30 31 35 44 47 53

20 19 19 10 11 11 11 11 8

Comp A

Comp B

Comp C

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Market Share Share of Mind Share of Heart


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PARAMJIT SHARMA 22

Selecting Competitors

Strong VS Weak

Close vs Distant

Good vs Bad


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PARAMJIT SHARMA 23

Reactions Patterns- competitors centered

A is going all out to crush us inthe North Zone

With draw from North Zone toavoid Messy Battle

B is improving its distributioncoverage in South Zone andhurting our Sales

Increasing Trade PromotionBudget in South Zone

C has introduced new servicefeature in the west Zoneaffecting our sales

Increase our advertisingexpenditure in the west Zone


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PARAMJIT SHARMA 24

Reactions Patterns- Customer centered

Market Growing at 5% annually

Improve components, qualitycontrol Satisfaction level ofCustomers

Quality Segment Growing at 8%annually.

Avoid cutting prices, improvingquality every where

Customers desired 24/7 serviceline which is offered by none

Install 24/7 service line if lookspromising


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PARAMJIT SHARMA 25

Competitive Strategiesfor Market Leaders


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PARAMJIT SHARMA 26

designing market Strategies

40%

30%

20%

10%

Market Leader

Market Challenger

Market Follower

Market Nicher


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PARAMJIT SHARMA27


Expanding the Total MarketNew usersNew UsesMore Usages

Defending Market Sharedefensive strategies

flank defensepreemptive defense

counter offensivemobile defensecontraction defense

LeadersStrategy


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PARAMJIT SHARMA28

LeadersStrategy

designing market Strategies -expanding market share

Attacker

3 Preemptive

4Counteroffensive

Defender

2Flank

5Mobile

6Contraction

1Position


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PARAMJIT SHARMA29

Expanding Market Share

Customer knowledgeLong term outlookProduct innovationAdvertisingAggressive sales forceCompetitive toughnessManufacturing EfficiencyBrand MgtPremium PerformanceSuperior Service

LeadersStrategy



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PARAMJIT SHARMA30


Defining Stg. Objectives & Opponents

Choosing General Attack Strategies

Choosing Specific Attack Strategies

ChallengersStrategies


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PARAMJIT SHARMA31


Defining Stg. Objectives & Opponents

It can attack the market Leader -xerox on 3m

It can attack firms with ageing products, high price

It can attack small, regional or local firms---merger of small banks



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PARAMJIT SHARMA32


Choosing General Attack Strategies

Frontal AttackFlank AttackEncirclement AttackBypass AttackGuerrilla Warfare



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PARAMJIT SHARMA33


Choosing Specific Attack Strategies

Discounting ProductLower PricingImproved ProductMore ServicesInnovative Distribution



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PARAMJIT SHARMA34


CounterfeitersCloners

ImitatorsAdapters

Follower

Strategies


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PARAMJIT SHARMA35

designing market strategies

End user Specialists

Vertical Level Specialists

Customer Size Specialists

Specific Customer Specialists

Product line Specialists

Product feature SpecialistsJob-shop Specialists

Quality price Specialists

Service Specialists

Channel Specialists

NichersStrategies


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Thanks and Questions

marketing competition

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