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1、9-1,Chapter 9 Dealing with the Competition by,PowerPoint by Milton M. Pressley University of New Orleans,9-2,Kotler on Marketing,Poor firms ignore their competitors; average firms copy their competitors; winning firms lead their competitors.,9-3,In this chapter, we focus on five things companies nee
2、d to know about their competition: Who the primary competitors are How to ascertain their strategies, objectives, strengths and weaknesses, and reaction patterns How to design a competitive intelligence system Whether to position as market leader, challenger, follower, or nicher How to balance a cus
3、tomer versus competitor orientation,Chapter Objectives,9-4,Figure 9-1: Five Forces Determining Segment Structural Attractiveness,Competitive Forces,Threat of: intense segment rivalry new entrants substitute products buyers growing bargaining power suppliers growing bargaining power,9-5,Figure 9-2: B
4、arriers and Profitability,9-6,GetT, launched as the Internet Travel Network in 1995, was the first company to book trips over the Web,9-7,Identifying Competitors,Industry Concept of Competition Industry Number of Sellers and Degree of Differentiation Pure monopoly Oligopoly Pure oligopoly Differenti
5、ated oligopoly Monopolistic competition Pure competition,9-8,Identifying Competitors,Entry, Mobility, Exit Barriers Entry barriers Mobility barriers Exit barriers Cost Structure Degree of Vertical Integration Vertical integration Degree of Globalization Market Concept of Competition,9-9,Objectives,F
6、igure 9-5: A Competitors Expansion Plans,Analyzing Competitors,9-10,Analyzing Competitors,Strengths and Weaknesses Dominant Strong Favorable Tenable Weak Nonviable,9-11,Table 9-1: Customers Ratings of Competitors on Key Success Factors,9-12,Analyzing Competitors,Three Variables to Monitor When Analy
7、zing Competitors: Share of market Share of mind Share of heart,9-13,Table 9-2: Market Share, Mind Share, and Heart Share,9-14,Reaction Patterns 1. If competitors are nearly identical and make their living the same way, then their competitive equilibrium is unstable. 2. If a single major factor is th
8、e critical factor, then the competitive equilibrium is unstable. 3. If multiple factors may be critical factors, then it is possible for each competitor to have some advantage and be differentially attractive to some customers. The more factors that may provide an advantage, the more competitors who
9、 can coexist. Competitors all have their segment, defined by the preference for the factor trade-offs they offer. 4. The fewer the number of critical competitive variables, the fewer the number of competitors. 5. A ratio of 2 to 1 in market share between any two competitors seems to be the equilibri
10、um point at which it is neither practical nor advantageous for either competitor to increase or decrease share.,Analyzing Competitors,9-15,For many years, the major national broadcast television networks shared 100% of the market, and traded market share back and forth periodically. During the last
11、two decades, the emergence of nationally available cable programming, and the rise of rival broadcast networks like Fox, UPN, and WB have increasingly cut into the market share of the “big three.” What steps would you recommend that the “big three” networks take to stop or slow this loss of market s
12、hare?,Discussion Question,9-16,Designing The Competitive Intelligence System,Four Main Steps Setting Up the System Collecting the Data Evaluating and Analyzing the Data Disseminating Information and Responding,9-17,Designing The Competitive Intelligence System,Selecting Competitors Customer Value An
13、alysis (CVA) Customer Value = Customer Benefits Customer Costs Customer Benefits = product benefits, service benefits, personnel benefits, image benefits Customer Costs = purchase price, acquisition costs, usage costs, maintenance costs, ownership costs, disposal costs,9-18,What do you see as the po
14、tential impact of the availability of information via the Internet on the design of competitive intelligence systems? What problems could be caused by the inability of the average computer user to verify the accuracy of data from the web? What impact will emerging database technologies like text-bas
15、ed data mining have in competitive intelligence systems?,Discussion Question,9-19,Table 9-3: Customer Cost of Three Brands,9-20,Designing The Competitive Intelligence System,Major Steps in Customer Value Analysis:1. Identify the major attributes customers value.2. Assess the quantitative importance
16、of the different attributes.3. Assess the companies and competitors performances on the different customer values against their rated importance.4. Examine how customers in a specific segment rate the companys performance against a specific major competitor on an attribute-by-attribute basis.5. Monitor customer values over time.,9-21,Classes of Competitors Strong versus Weak Close versus Distant “Good” versus “Bad”,Designing The Competitive Intelligence System,
