Competitive Strategies

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Competitive Strategies

• Marketing Strategy (MKTG 6010)
• David Forlani, UCDHSC

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Presentation Overview

• Define Competitive Strategies
• Fit with other strategies
• Consider General Approaches
• Consider Approaches Specific to
• Growing Markets
• Leaders
• Challengers
• Mature Markets
• Declining Markets

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Competitive Strategies

• Adjust the focus from that used in developing the
  marketing strategy (segmenting, target, position)
  to take account of specific market conditions and
  anticipated competitor actions.
• Should guide implementation of the marketing mix
  to best achieve the marketing programs goals.

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Strategy as Sand Castles

• Most people just build what they want on the
  beach where they are (Firm-centric Reactive).
• Some look to see what others are building and
  copy that (Competitive Reactive).
• The good marketer should consider all of the
  following (Integrative Proactive).
• Corporate Strategy State (Oregon or Florida)
• BU Strategy City (Jacksonville or Miami)
• Marketing Strategy Section of Beach
• Competitive Strategy Considers the tides, time
  of day, weather forecast
• Mix / Implementation Strategies Type of edifice
  to build

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General ApproachesMaintain/Improve Satisfaction

• Deepen your positions uniqueness
• Continue product improvement lower costs /
  improve features
• Strengthen quality (e.g., functional performance,
  durability, serviceability)
• Strengthen key service attributes (e.g.,
  tangibles, reliability, responsiveness, assurance
  and empathy)
• Focus ads on building brand equity emphasize
  relative product benefits
• Review channels (e.g., reinforce key account
  coverage)
• Enhance post-sale service (e.g., Delivery,
  financing, parts availability, turnaround time)

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General Approaches Encourage/Simplify Repeat
Purchases

• Gain support from channel members to merchandise
  better and promote more often
• Plan for increased demand to avoid stockouts
• Consider automatic reorder systems

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General Approaches Reduce the Attractiveness of
Switching

• Meet price/features being offered by main
  competitors
• Expand current line to meet a segments wants as
  it diversifies
• Deploy a second brand that provides better meets
  alternative determinant attributes (e.g., price
  or level of benefits)
• Create loyalty programs that both reward current
  customers and discourage switching

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General Approaches Induce New Adoption

• Develop a new generation of products based on new
  technologies that offer superior performance
• Offer attractive price incentives, especially for
  recurring-fee services
• Promote directly to new potential users with
  appropriate (yet consistent) appeals
• Ensure differentiated distribution in places
  where new users shop

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Competitive Strategies Share Leaders in Growing
P-Ms

Flanker Proactive Reactive
Fortress or position defense strategy
COMPETITORORPOTENTIALCOMPETITOR
Contraction or strategic withdrawal
Confrontation Proactive Reactive
LEADER
Market expansion
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Competitive Strategies Challengers in Growing
P-Ms
Leapfrog strategy

Flanking attack
Frontal attack
TARGETCOMPETITOR
CHALLENGER

Encirclement strategy
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Competitive Strategiesin Mature Markets

• Increase penetration
• Convert non-users (you really need a Food Saver)
• Steal competitors customers (Shell gas is
  better)
• Extend usage
• Increase repeat purchase (dont wait till it
  dies)
• Demonstrate new product applications (it dices
  too)
• Lead market evolution (oval, crust-less pizza)
• Expand market focus
• Review segmentation scheme (after-school
  activities)
• Consider underserved segments (retirees)

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Competitive Strategiesin Declining Markets

• Harvesting staged withdrawal
• Maximize short-term cash flow
• Maintain or increase margins
• Optional withdrawal wait and see
• Increase share at expense of margins
• Profitable survivor dominate in the future
• Encourage others to leave
• Niche focused domination
• Strengthen position with selected customer groups