MKT Leader, Follower, Challenger

Marketing Strategies for
Competitive Positions
Definition
• Competitive Analysis
– The process of identifying key

competitors; assessing their
objectives, strategies, strengths
and weaknesses, and reaction
patterns; and selecting which
competitors to attack or avoid.
Types of Competitive Positions
Market Leaders
Market Challengers
Market
Followers
Nichers
Market Leaders
Competitive Strategy
Competitive • Expanding the total demand
Positions – Finding new users
– Discovering and promoting new
product uses
• Market Leader – Encouraging greater product
usage
• Market Challenger • Protecting market share
– Many considerations
• Market Follower – Continuous innovation
• Market Nicher • Expanding market share

– Profitability rises with market
share
Marketing Strategy
Market Leader Strategies
• Increase Size of Total Market

• Product-Market Growth
Strategies Market Share
• Protect Market Share

• Fortification
• Assortment of brands, 100%
sizes
• Innovation
• Best defense is a good
Marketing Effort ($)
offense
• Counteroffensive
Designing Competitive
Strategies
• Expanding the Total Market:
– Targeting Product to New Users
• Market-penetration strategy
• New-market strategy
• Geographical-expansion strategy
– Promoting New Uses of Product
– Encouraging Greater Product Use
Strategies
Defending Market Share
• Position • Counteroffensive
defense defense
• Flank defense • Mobile defense
• Preemptive defense • Contraction defense
Expand
Expand Total
Total Market
Market
Kodak ----- New user, new uses, more uses
Arms and hammer’s baking soda, refrigerator demand and kitchen

grace fires
Michelin Tire (French) – French car owners to drive there car

more miles per year. More tire replacement
Defend
Defend market
market Share
Share
Coca vs. Peps, Gillette vs. Bick,

Hertz vs. Avis
Defense
Defense Strategy
Strategy
Vs.
Heinz ketchup market enjoy high market share Hunts

costly attack failed
Flank
Flank Defense
Defense
Heublein’s brand Smirnoff attack by Wolf Schmidt

vodka. Smirnoff price rise by one dollar for the
advertising
Market Leader Strategies
Position
Position Flanking
Flanking Preemptive
Preemptive
protect
fortification weakness guerrilla
create psychological
assault posts preventative
Market
Market Leader
Leader
Counteroffensive
Counteroffensive Mobile
Mobile Contraction
Contraction
fast, solid, broadening fronts strategic withdrawal
Strategies
• Before Attempting to Expand Market
Share, Consider:
– Probability of invoking antitrust action
– Economic costs involved
– Likelihood that marketing mix decisions will
increase profits
Competitive • Option 1: challenge the

market leader
Positions – High-risk but high-gain
– Sustainable competitive
advantage over the leader is
• Market Leader key to success
• Market Challenger • Option 2: challenge firms of
the same size, smaller size or
• Market Follower challenge regional or local
firms
• Market Nicher • Full frontal vs. indirect attacks
Strategies
• General Attack Strategies:
– Frontal attacks match competition
– Flank attacks serve unmet market needs or
underserved areas
– Encirclement “blitzes” opponent
– Bypassing opponent and attacking easier
markets is also an option
Market Challenger Strategies
Encirclement
Encirclement
Flanking
Flanking Bypass
Bypass
Frontal
Frontal Guerrilla
Guerrilla
Challenger
Challenger Strategies
Strategies
Competitive • Follow the market leader

Positions – Focus is on improving
profit instead of market
share
• Market Leader – Many advantages:
• Learn from the market
• Market Challenger leader’s experience
• Copy or improve on the
• Market Follower leader’s offerings
• Strong profitability
• Market Nicher
Market Follower Strategies
Cloner
Cloner
Imitator
Imitator
Adapter
Adapter
Strategies
Specific Attack Strategies Include:
• Price-discount • Product
• Lower-price goods innovation
• Prestige goods • Distribution
innovation
• Improved services
• Manufacturing
• Product proliferation cost reduction
Competitive
Positions • Serving market niches means
targeting sub segments
• • Good strategy for small firms
Market Leader with limited resources
• Market Challenger • Offers high margins
• Specialization is key
• Market Follower – By market, customer,
product, or marketing mix
• Market Nicher lines
Nicher Strategies for Advantage
End-Use Specialist Geographic Specialist
Vertical-Level Specialist Product/Feature Specialist
Customer-Size Specialist Quality-Price Specialist
Specific-Customer Specialist Service Specialist

What makes a Niche a Good Niche?
General Nicher - Rules

• Be satisfied being small.
• Stay stealthy, stay healthy.
• Don’t be myopic.
• The customer’s always right
but not always right for you.
• stick to niching but not
necessarily to your niche.

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Marketing Strategies for

– The process of identifying key

• Market Nicher • Expanding market share

Market Leader Strategies

• Increase Size of Total Market

• Protect Market Share

Arms and hammer’s baking soda, refrigerator demand and kitchen

Michelin Tire (French) – French car owners to drive there car

Coca vs. Peps, Gillette vs. Bick,

Heinz ketchup market enjoy high market share Hunts

Heublein’s brand Smirnoff attack by Wolf Schmidt

Competitive • Option 1: challenge the

Competitive • Follow the market leader

End-Use Specialist Geographic Specialist

Vertical-Level Specialist Product/Feature Specialist

Customer-Size Specialist Quality-Price Specialist

Specific-Customer Specialist Service Specialist

General Nicher - Rules

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