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Notes: Ch 11 Dealing with Competition

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Marketing Management
Notes on Chapter 11 | DEALING WITH COMPETITION [Keller/Kotler]

Five Forces Determining Segment Structural Attractiveness
(Porter’s Model)
Figure 1.1

Industry Concept of Competition * Number of sellers and degree of differentiation * Entry, mobility, and exit barriers * Cost structure * Degree of vertical integration * Degree of globalization

* Pure monopoly – only one firm offers undifferentiated product or service in an area * Oligopoly – a few firms produce essentially identical commodities and little differentiation exists * Monopolistic competition – many firms differentiate items in whole or part

Pure competition – many competitors offer the same product
“Companies that make steady gains in mind share and heart share will inevitably make gains in market share and profitability.”
“Companies that make steady gains in mind share and heart share will inevitably make gains in market share and profitability.”
Analyzing Competitors * Share of market * Share of mind * Share of heart
Expanding the Total Market * New Customers – three groups: * Market-Penetration strategy – customers might use but do not * New-Market segment strategy – customers have never used it * Geographical-Expansion strategy – customers who live elsewhere

* More Usage * Additional Opportunities to Use the Brand – communicate the appropriateness and advantages of using the brand * New Ways to Use the Brand - increasing the frequency of consumption to identify new and different applications
Six Types of Defense Strategies * Position Defense/Defender – (most desirable) the simplest defensive strategy. It simply involves trying to hold your current position in the market. * Flank Defense – it defends its market share by diversifying into new markets and niche

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