phillip kevin lane kotler • keller - unibg competitive... · title: kotler_mm14_ch11_dppt.ppt...
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Kotler • Keller Phillip Kevin Lane
Marketing Management • 14e
Compe&&ve Dynamics
Copyright © 2012 Pearson Educa&on, Inc. Publishing as Pren&ce Hall Slide 3 of 31
Discussion Ques&ons 1. How can market leaders expand the total market
and defend market share?
2. How should market challengers aJack market leaders?
3. How can market followers or niche compete effec&vely?
4. What marke&ng strategies are appropriate at each stage of the PLC?
5. How should marketers adjust their strategies and tac&cs for an economic downturn or recession?
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Market Members
Market leader
Market challenger
Market follower Market nichers
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Hypothetical Market Structure
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Staying Number One
1. Expand total market demand
2. Protect current market share
3. Increase market share
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Expanding Total Market Demand
New Customers More Usage Replacement rate New product uses
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Protect Current Market Share
Proac&ve Marke&ng
Offensive Strategy Defensive Strategy
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Increase Market Share
An&trust ac&on
Pursue wrong marke&ng ac&vity
Lower overall quality
Decreased profitability
2012 2013
“Actual” quality
“Perceived” quality
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Optimal Market Share
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Other Compe&&ve Strategies
Market-‐challenger
Market-‐follower
Market-‐nicher
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Market-‐Challenger Strategies
Define objec&ves and opponent(s)
Choose general aJack strategy
Choose Specific aJack strategy
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Market-‐Challenger Strategies
A"ack: Market leader Weaker, similar size firms Smaller local or regional firms
Frontal aJack Flank aJack Encirclement aJack Bypass aJack Guerrilla aJack
Objec,ves and Opponents General a"ack strategies
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Market-‐Follower Strategies
Counterfeiter
Cloner Imitator
Adapter
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Market-‐Nicher Strategies
Target small, profitable segments Achieve higher margins
Nichers Task Create niches Expand niches Protect niches
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Product Life-‐Cycle Strategies
• Products have a limited life
• Sales pass through stages
• Profits rise, then fall
• Different strategies needed
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Sales and Profit Life Cycles
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Common Product Life-Cycle Patterns
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Style, Fashion, and Fad Life Cycles
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Product Life-‐Cycle Stages
Introduc,on
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Slow sales growth, nega&ve profits
PLC: Introduc&on Stage
Marke,ng Strategies: 1. Create awareness 2. Induce product trial 3. Secure retail distribu&on.
Which is more profitable over 5 years? • 6 months late, but on budget? • On &me, but 50% over budget?
Speed to Market
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Order of Market Entry
First Mover Advantage
• Brand name associa&on • Define product class • Customer iner&a • Producer advantages
Imitator Advantage
Inventor Product pioneer Market pioneer
Pioneer Advantage
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PLC: Growth Stage
Rapid sales growth; New compe&tors
Marke,ng Strategies: 1. Improve product quality; add new features
2. Add new models and flanker products
3. Enter new market segments
4. Focus adver&sing on preferences
5. Increase distribu&on coverage 6. Lower price; AJract price-‐sensi&ve buyers
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PLC: Maturity Stage
Growth slows; Weak compe&tors exit
Marke,ng Objec,ves: 1. Maximize profit 2. Defend market share
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PLC: Decline Stage
Slow sales growth, nega&ve profits
Product Op,ons: 1. Rejuvenate 2. Harvest 3. Divest
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Characteristics of the PLC Introduc,on Growth Maturity Decline
CHARACTERISTICS
Sales Low Rapidly rising Peak Declining
Costs/customer High Average Low Low
Profits Nega&ve Rising High Declining
Customers Innovators Early Adopters Middle majority Laggards
Compe&tors Few Increasing Stable number Declining
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PLC Objectives and Strategies Introduc,on Growth Maturity Decline
MARKETING OBJECTIVES
Awareness and trial
Maximize market share
Maximize profits; Defend share
Milk the brand
STRATEGIES
Product Basic Extend; Service, warranty
Diversify brands and models
Phase out the weak
Price Charge cost-‐plus
Price to penetrate Price to match Cut price
Distribu&on Selec&ve Intensive More intensive Go selec&ve
Communica&ons Awareness early adopters
Awareness w/ mass market
Stress brand benefits
Reduce to minimal
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Marke&ng in an Economic Downturn
Increasing Investments
Get Closer to Customers
Review Budget Alloca&ons
More Compelling Value Proposi&on