Chapter

12
Addressing
Competition and
Driving Growth

Copyright 2016 Pearson Education, Inc. 12-1

 Competitive Strategies
for Market Leaders
Expanding total market
demand

Protecting market share

Increasing market share

Copyright 2016 Pearson Education, Inc. 12-2

 Expanding total market demand

New customers
More usage

Copyright 2016 Pearson Education, Inc. 12-3

 Protecting market share

Proactive
marketing
Responsive
anticipation
Creative
anticipation

Copyright 2016 Pearson Education, Inc. 12-4

 Protecting market share
Defensive marketing

Copyright 2016 Pearson Education, Inc. 12-5

 PRODUCT LIFE-CYCLE
MARKETING STRATEGIES
A companys
positioning and
differentiation
strategy must change
as its product,
market, and
competitors change
over the PLC

Copyright 2016 Pearson Education, Inc. 12-6

 Figure 12.7
Style, Fashion, And Fad Life Cycles

Copyright 2016 Pearson Education, Inc. 12-7

 Marketing Strategies: Introduction
Stage
Pioneering advantages
Recall of brand name
Establishes product class attributes
Captures more uses in middle of market
Pioneering drawbacks
Imitators can surpass innovators
Once leadership is lost, its rarely regained

Copyright 2016 Pearson Education, Inc. 12-8

 Marketing Strategies: Growth
Stage
To sustain rapid market share growth now:
Improve product quality and add new features
Add new models and flanker products
Enter new market segments
Increase distribution coverage and enter new
distribution channels
Shift from awareness and trial communications to
preference and loyalty communications
Lower prices to attract the next layer of price-sensitive
buyers

Copyright 2016 Pearson Education, Inc. 12-9

Marketing Strategies: Maturity
Stage

Market modification

Product modification

Marketing program
modification

Copyright 2016 Pearson Education, Inc. 12-10

 Marketing Strategies: Decline
Stage
Eliminating Weak
Products

Harvesting and
Divesting

Copyright 2016 Pearson Education, Inc. 12-11

NEW WAYS TO USE A BRAND

Copyright
Copyright 2011 Pearson 2016 Pearson
Education, Education, Inc.
Inc. Publishing as Prentice Hall 12-12