MARKETING MANAGEMENT

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MARKETING MANAGEMENT

• Stephen J. Miller
• Oklahoma State University
• MKTG 5133-MG 720
• Lecture 7

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COMPETITIVE CLIMATE
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Competitors

• Those organizations that through direct and
  potential actions compete for market sales and/or
  restrict the strategic options of the business.

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Competitive Forces
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Industry Structure

• Monopoly
• Oligopoly
• Monopolistic competition
• Pure competition

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Industry Entry Barriers

• Patents/Intellectual capital
• Capital investment
• Economies of scale
• Distribution structure
• Trade barriers

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Industry Exit Barriers

• Business unit interdependence
• Distributor commitments
• Low asset recovery
• Governmental restrictions

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Barriers and Profitability
Low, risky returns
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Competitive Climate

• Strategic Groups
• Competitor objectives
• Competitor strengths/weaknesses
• Competitive intensity

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Competitive Position

• Market leader
• Market challenger
• Market follower
• Market nicher

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Market Strategies for Leader

• Expand the market
• Expand market share
• Defend the market

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Market Strategies for Challenger

• Frontal attack
• Flank attack
• Bypass/segment focus
• Guerrilla warfare

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Market Strategies for Follower

• Imitation at lower price
• Private brand provider

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Market Strategies for Nichers

• Small market targets

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Your Questions

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