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11 Cards in this Set
- Front
- Back
1. Gaining Share is Easier
2. Share Gains are worth More 3. Price competition is likely to be less intense 4. Early entry is necessary to maintain technical expertice |
Opportunities and Risks in Growing Markets (4)
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1. Its easier for a new entrant to attract first-time users than to take business away from entrenched competitors.
2. It must develop a product offering that new customers perceive as more attractive than other alternatives. 3. It must have the marketing resources and competencies to effectively persuade them of that fact. |
How is gaining share easier in growing markets?
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1. The existence of positive network effects
2. Future changes in technology or other key success factors 3. Future competitive structure of the industry 4. Future fragmentation of the market |
That share gains are worth more in growing markets depends on... (4)
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Why price competition is likely to be less intense on growing markets?
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If the market grows fast demand might exceed supply and allow a price premium
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1. Retain its current customers
2. Stimulate selective demand among later adopters 3. Stimulating primary demand to help speed up overall market growth |
What are the marketing objectives for leading companies in growing markets? (3)
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1. Fortress, or Position Defense, Strategy
2. Flanker Strategy 3. Confrontation Strategy 4. Market Expansion Strategy 5. Contraction, or Strategic Withdrawal, Strategy |
Strategies for leading companies in growing markets
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1. Actions to improve customer satisfaction and loyalty
2. Actions to encourage and simplify repeat purchasing |
What are the actions available for a fortres, or position defense, strategy? (2)
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1. Build a small but profitable business within a specialized segment of the larger market
2. Displace the leader 3. Become powerful competitor 4. Attain major share growth |
Objectives for followers in growing markets (4)
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1. Steal away some of the repeat purchase or replacement demand from the competitor's current customers.
2. Attracting a larger share of potential new customers |
Marketing actions for followers on growing markets (2)
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1. Frontal Attack Strategy
2. Leapfrog Strategy 3. Flanking and Encirclement Strategies 4. Guerrilla Attack |
Strategies for followers in growing markets (5)
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1. The market-share leader within its primary target market (frontal assault or leapfrog)
2. Another follower who has an established position within a major market segment (frontal assault) 3. One or more smaller competitors who have only limited resources 4. Avoid direct attacks on any established competitor |
Whom to attack as a follower on a growing market.
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