HOW CAN MARKET LEADERS EXPAND THE TOTAL MARKET AND DEFEND MARKET SHARE

EXPANDING TOTAL MARKET DEMAND

New Customers

More Usage

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NEW CUSTOMERS

Market Penetration Strategy

New Market Segment Strategy

Geographical Expansion Strategy

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MORE USAGE

Additional Opportunities to Use the Brand

New Ways to Use the brand

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PROTECTING THE MARKET SHARE

Proactive MarketingDefensive Marketing

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Proactive Skills Responsive Anticipation Creative Anticipation

Proactive Firms are: Are ready to take risks and make mistakes Have a vision of the future and of investing in it Have the capabilities to innovate Are flexible and nonbureaucratic Have many managers who think proactively

PROACTIVE MARKETING

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DEFENSIVE MARKETING

Six types of defense strategies

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INCREASING MARKET SHARE

The possibility of attracting legal action for violating the competition Act or Antitrust law

Economic Cost

The danger of pursuing the wrong marketing activities

The effect of increased market share on actual and perceived quality

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HOW SHOULD MARKET CHALLENGERS ATTACK MARKET LEADERS

MARKET-CHALLENGER STRATEGIES

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MARKET-CHALLENGER STRATEGIES

Defining the Strategic Objective and Opponents

Choosing a General Attack Strategy

Choosing a Specific Attack Strategy

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DEFINING THE STRATEGIC OBJECTVE AND OPPONENTS(S)

It can attack the Market Leader

It can attack firms its own size that are not doing the job and are underfinanced

It can attack small local and regional firms

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CHOOSING A GENERAL ATTACK STRATEGY

Frontal Attack

Flank Attack

Encirclement Attack

Bypass Attack

Guerrilla Attack

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CHOOSING A SPECIFIC ATTACK STRATEGY

Any aspect of marketing can serve as basis for attack Lower priced products Discounted products New or improved products and services Wide variety of offerings Innovative distribution strategies etc.

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HOW CAN MARKET FOLLOWERS OR NICHERS COMPETE EFFECTIVELY

MARKET-FOLLOWER STRATEGIES

Mark

et

Lead

ersInnovator bears

the expense of developing a new product, getting distribution, educating the marketReward for work and risk- market leadership

Mark

et

Follo

wersCopy or improve

the new productAchieves high profit because no innovation cost

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MARKET-FOLLOWER STRATEGIES

Counterfeiter

Cloner

Imitator

Adapter

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MARKET-NICHER STRATEGIES

Leader in a small market

Large profitable firms also use niching strategies

ROI in smaller markets > larger markets

Nicher achieves high margin, mass marketer achieves high volume

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MARKET-NICHER STRATEGIES

Protecting niches

Expanding

niches

Creating niches

• High risk of drying up• Can weaken the firm => continually create

new ones• Multiple niching • Entrants should focus at niches initially

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MARKET- NICHER STRATEGIES

Nic

he S

peci

alis

t R

ole

s

End-User Specialist

Vertical-Level Specialist

Customer-Size Specialist

Specific-Customer Specialist

Geographic Specialist

Product Line Specialist

Product-Feature Specialist

Job-Shop Specialist

Quality-Price Specialist

Service Specialist

Channel Specialist

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WHAT MARKETING STRATEGIES ARE APPROPRIATE AT EACH STAGE OF THE PRODUCT LIFE CYCLE

PRODUCT LIFE CYCLE

Introduction

Growth

Maturity

Decline

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COMMON PLC PATTERNS

Growth Slump Maturity

Cycle-Recycle Pattern

Scalloped

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STYLE, FASHION AND FAD LIFE CYCLES

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MARKETING STRATEGIES- INTRODUCTION

Inform potential

Induce product trial

Secure distribution

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MARKETING STRATEGIES- INTRODUCTION

Long term Market Leadership Vision of Mass Market Persistence Relentless Innovation Financial Commitment Asset Leaverage

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MARKETING STRATEGIES- GROWTH

Men’s fairness creams such as Fair and Handsome use well known film and cricket stars and offers entertainment, information, and advice in a bid to capture customer attention in a market that is getting increasingly crowded.

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MARKETING STRATEGIES- MATURITY

Market Modification• Expand Number of Users • Increase the Usage rate among Users

Product Modification• Quality Improvement• Feature Improvement

Marketing Program Modification• Price, Distribution• Communication

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MARKETING STRATEGIES- DECLINE

Declining SalesLow Cost

per Customer

Declining Profits Laggards

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HOW SHOULD MARKETERS ADJUST THEIR STRATEGIES AND TACTICS FOR AN ECONOMIC DOWNTURN OR RECESSION

MARKETING IN ECONOMIC DOWNTURN

EXPLORE THE UPSIDE OF INCREASING INVESTMENT

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MARKETING IN ECONOMIC DOWNTURN

GET CLOSER TO CUSTOMERS

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MARKETING IN ECONOMIC DOWNTURN

REVIEW BUDGET ALLOCATIONS

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MARKETING IN ECONOMIC DOWNTURN

PUT FORTH THE MOST COMPELLING VALUE PROPOSITION

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MARKETING IN ECONOMIC DOWNTURN

FINE TUNE BRAND AND PRODUCT OFFERING

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CREDITSAll Photos are taken from google images and Book on ‘Marketing Management’ by Kotler

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THANK YOU

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DisclaimerCreated by Shivam Verma, IIT Delhi, during an internship with Prof. Sameer Mathur,

IIM Lucknow,www.IIMInternship.com ”