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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)
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?
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)
Why price competition is likely to be less intense on growing markets?
If the market grows fast demand might exceed supply and allow a price premium
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)
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
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)
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)
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)
1. Frontal Attack Strategy
2. Leapfrog Strategy
3. Flanking and Encirclement Strategies
4. Guerrilla Attack
Strategies for followers in growing markets (5)
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.