MG 220 Market|ng Management

M8A 10
Ia|| 2010
Muhammad 1alha Salam AssL rofessor
Lalhasalam[nuedupk
Access |t on||ne wwws||desharenet]ta|hasa|am
Part :
8uilding Strong 8rands
> Competitive Strategies for Market Leaders
> Other Competitive Strategies
> 8alancing Customer & Competitive Orientations
> Case Study : A8N AMRO (Class Discussion)
> quiz : Part (Chap & ~ jed. OR Chap & ~
jed.)
Class Presentation | Session ) | Oct
Access |t on||ne wwws||desharenet]ta|hasa|am
Competitive Strategies for Market
Leaders
W Different roles firms can have in a target market:
Leader
Challenger
Iollower
Nicher
W ln most of lndustry, there ls un estubllshed murket leuder.
Moblllnk (Celcos), Clllette (Ruzors), 1CS (Courler) etc.
W Although they huve dlstlnct luce but unless they ure u legul monooly,
they fuce tough tlme ulwuys!
W Stuylng u leuder requlres cureful struteglc uctlon:
llndlng wuys to pand 1otal Market Size
Must Protect current Market Share
1ry to increase Market Share (even lf current murket slze ls not lncreuslng)
MG 220 Market|ng Management 2
Access |t on||ne wwws||desharenet]ta|hasa|am
Competitive Strategies for Market
Leaders
panding the 1otal Market
W lf overull murket slze lncreuses, blggest gulner ls Murket Leuder
W Llfferent wuys of dolng lt:
New Customers
W Murket Penetrutlon strutegy Users who mlght use lt but don't
W NewMurket segment strutegy Users who huve never used lt
W Ceogruhlculexunslon strutegy Users who llve elsewhere
More Usuge
W lncreuse leveljquuntlty of consumtlon
W lncreuse frequency of consumtlon
W ldentlfy other uses (food roducts flndlng new recles)
W Communlcutlng effectlvely us to when lt should be reluced
Product develoment cun ulso sur new uses
W Consider Maggi
MG 220 Market|ng Management 3
Access |t on||ne wwws||desharenet]ta|hasa|am
Competitive Strategies for Market
Leaders
ProtectingjDefending Current Market Share
W Leuder ls llke u lurge elehunt swurmed by bees
W vhlle lncreuslng shure und murket slze, lt must ulso contlnuously defend lts current
buslness
W Contlnuous lnnovutlon - to kee lncreuslng lts cometltlve strength und vulue to
consumers
W ln thls rocess of sutlsfylng customer needs, u flrm muy be enguged ln:
Resonslve murketlng - flndlng needs und fulfllllng them
Antlclutlve murketlng - looklng uheud lnto whut needs u customer muy huve ln future
Creutlve murketlng - Llscoverlng & creutlng solutlons not usked for!
Sony s a marketdrvng jrm not a marketdrven jrm.
Sony doesn't serve markets, Sony creates markets
MG 220 Market|ng Management 4
Access |t on||ne wwws||desharenet]ta|hasa|am
Competitive Strategies for Market
Leaders
ProtectingjDefending Current Market Share (.contd.)
W Lefendlng ls just llke mllltury defenslve strutegy. Any of these slx osltlons cun be tuken
W All of these olnts huve exumles ln brundlng strutegles by brunds. lf thelr strutegles ure
observed curefully, these utterns of defenslve strutegy cun be seen cleurly
Position defense - Cccuylng most deslruble osltlon ln murket & mlnds of consumers und muklng lt lmregnuble
Ilank defense - Creutlng outosts to rotect weuk fronts or even luunch counteruttucks
Preemptive defense - Attuck before enemy does
Counteroffensive defense - Resondlng to uttuck by luunchlng own strutegy ugulnst rlvul
Mobile defense - Leuder cun stretch lts domuln und move lnto new terrltorles
Contraction defense - Comunles ut tlmes reullze thut they cunnot defend ull of thelr terrltory und go for u
lunned contructlon (ulso known us strategc wtndrawal)
MG 220 Market|ng Management S
Access |t on||ne wwws||desharenet]ta|hasa|am
Competitive Strategies for Market
Leaders
Increasejpand Market Share
W Culnlng one shure olnt cun be worth mllllons ln revenue
W Leuder must ulwuys focus on curefully lncreuslng murket shure
W Murket shure lncreuse muy not ulwuys lmly lncreused rofltublllty und
hus lts own shure of roblems
W ley conslderutlons
Posslblllty of rovoklng untltrust
Lconomlc cost - Concet of otlmul murket shure. Aheud of thls vulue, rofltublllty
muy uctuully decllne
Pursulng wrong murketlngmlx strutegy
Lffect of lncreused murket shure on uctuul ercetlon und ercelved quullty
MG 220 Market|ng Management 6
Access |t on||ne wwws||desharenet]ta|hasa|am
Other Competitive Strategies
MarketChallenger Strategies
W Murket Chullengers set hlgh uslrutlons und leveruge thelr resources ut fullest
whlle murket leuder often runs buslness us usuul
W Strutegles used by MurketChullenger
Defining the strategic ob[ective & opponent(s)
W lt cun uttuck the murket leuder
W lt cun uttuck flrms of lts own slze
W lt cun uttuck smull locul und reglonul flrms
Choosing a general attack strategy
W lrontul uttuck
W llunk uttuck
W Lnclrclement uttuck
W 8yuss uttuck - technologlcul leufrogglng
W Cuerrlllu wurfure
Choosing a specific attack strategy
W Muny otlons uvulluble
MG 220 Market|ng Management 7
Lxamp|es of Spec|f|c attack strategy
rlce dlscounL
Lower prlced goods
valueprlced goods servlces
resLlge goods
roducL prollferaLlon
roducL lnnovaLlon
lmproved servlces
ulsLrlbuLlon lnnovaLlon
ManufacLurlngcosL reducLlon
lnLenslve adverLlslng promoLlon
Access |t on||ne wwws||desharenet]ta|hasa|am
Other Competitive Strategies
MarketIollower Strategies
W Muny flrms refer followlng murket leuder ruther thun chullenglng
W Strutegles used by Murketlollowers
Counterfeiter
Cloner
Imitator
Adapter
MG 220 Market|ng Management 8
Access |t on||ne wwws||desharenet]ta|hasa|am
Other Competitive Strategies
MarketNicher Strategies
W Conslder belng u leuder ln u smull murket
W Nlchers get to know thelr customers so well thut they ulso churge remlum
W Creutlngjldentlfylng nlches ls u contlnuous rocess
MG 220 Market|ng Management 9
Access |t on||ne wwws||desharenet]ta|hasa|am
8alancing Customer & Competitive
Orientations
W Competitive Orientation
Comunles ulwuys observe & focus on cometltors
llghter's orlentutlon
Alwuys observlng strutegles, strengths und weuknesses for cometltors
W Customer Orientation
locuslng mulnly on customers ruther thun cometltlon
8etter luced to ldentlfy new oortunltles
MG 220 Market|ng Management 10
MG 220 Market|ng Management
M8A 10
Ia|| 2010
Muhammad 1alha Salam AssL rofessor
Lalhasalam[nuedupk
Access |t on||ne wwws||desharenet]ta|hasa|am
Part :
Shaping the Marketing Offerings
> LLf1OvL8 1OPlC f8OM CNAP . Devising 8rand Strategy
> Product Characteristics
> Product & 8rand Relationships
> Differentiation
> Case Study : LO
Class Presentation | Session 8 | 8 Oct