Ceramics: Market Shares, Strategies, and Forecasts 2014 : Market Shares, Strategies, and Forecasts, Sanitary Pottery Market Shares, Strategies, and Forecasts, Worldwide, Market Penetration and Acquisition Strategies for .Market Penetration and Acquisition Strategies for Market Penetration and Acquisition Strategies for provides competitive, ESSENTIAL OPTIONS STRATEGIES FOR ANY MARKET ESSENTIAL OPTIONS STRATEGIES FOR ANY MARKET Explore Put, Identifying Strategies to Market Police in the News - .Identifying Strategies to Market the Police, market segmentation process with market strategies. stream 18 20 It offers goods or services for celebrating the events of target buyers. Figure 2 shows broad strategies for different competitors. Match the items of List I with the items of List II and choose the correct answer from the code given below. 0000025907 00000 n /F2 9 0 R They have to remain alert for all the time as they can be invaded any time by the large competitors. The success of the strategy depends on how far challenger can exhibit superiority over the leader. The firm has unsatisfactory performance. MARKET RELEASE - .Stuart Barton, General Manager of Marketing and Communications, Challenger Limited, How should market challenger attack market leader, FinTech Challenger Businesses Workshop for - FinTech Challenger crowdfunding and peer 2 peer platforms Creation of a secondary market for crowdfunding welcome thecurrentFCAthinking, A Strong Challenger in the Software Development Market, Eindhoven University of Technology MASTER 7 Market aspects 7.1 Throughput time . c. Winning competitors customers (aggressive strategy). These strategies consist of many specific attack strategies, some of them have been described as under: It consists of offering a comparable product at a lower price.

The entire portion of the article is based on Kotlers views. Continuous innovation, better customer service, distribution effectiveness, and cost-cutting can increase competitiveness. (a) Mobile defense More usage may be in forms of more quantity, numbers, time, amount, intensity, and so on. Market diversification calls upon moving quickly into unrelated industries to strengthen its position. Leader firm has to undertake frontal, i.e., head-on attack in case of rapid erosion of market share. A small finance company deals with only car loans or personal loans. Privacy Policy 8. g#$Z{1+(BVqS];%,U$#c$d.Rt|f]7XmgFso3 ` o{ shift into unrelated industries. The purpose of such attack is to confuse, harass and demoralize opponents, and finally make permanent place in the market. (D) Market Nicher endstream endobj 19 0 obj<> endobj 20 0 obj<> endobj 21 0 obj<>/Font<>/ProcSet[/PDF/Text]/ExtGState<>>> endobj 22 0 obj<> endobj 23 0 obj<> endobj 24 0 obj<> endobj 25 0 obj<> endobj 26 0 obj<> endobj 27 0 obj<>stream However, it is less expensive compared to other attacks. Sometimes, capable challengers can overtake the leader, too. A leader firm has to do everything possible to defend its current market share.

Niches (small groups of buyers) are fairly small and normally attract a few competing firms (nichers). On the basis of market position, market shares, brand image, resources capacities, and domination power (degree of control over others), there are broadly four types of competitors, such as: Every company must formulate different strategies to react with different competitors. Market leaders use this strategy to gain an advantage over competitors and upset industry balance. Naturally, flank attacks are more likely to be successful than the frontal attacks. viii.

The firm concentrates its efforts only on particular events or occasions like marriage, grand inauguration, birthday, anniversary, or some festivals. When a company treats each single customer as a separate segment, this is called : The G. E. Business Model is explained on which one of the following parameters ? It has less-than-average opportunities to improve its position. The strategies of flanking defense, preemptive defense, mobile defense, contractor defense and counter offensive defense is used by which market player? Other firms are constantly challenging leadership position. Choosing Specific Attack Strategies or Attacking Tools: The five main attack strategies frontal attack, flank attack, encirclement attack, bypass attack, and guerrilla attack are very broad. Likewise, customers can be convinced to brush the teeth thrice a day or every time after consuming sweets, instead of once in a day, normally, in the morning. A niche is a more narrowly defined small market (limited number of buyers) whose needs are not being well-served by existing sellers. %

Market challengers are capable to attack the leader and other competitors. It is more applicable to edible-class products. Copyright 10. Specialization is the basic idea to serve niches. Which of the following is NOT an effective way to identify customer needs? In geographical attack, the challenger spots (locates) areas where the opponent is underperforming. They can achieve high margin while large companies can achieve high volume. << Market for automobiles needs to be segmented on the basis of: Every product class has potential to attract new buyers who are either not aware of the product or are resistant due to high price and lack of desired features. Due to improved production efficiency, a firm can sell better-quality products even at low price. /Parent 2 0 R The challenger concentrates on opponents less-secured, rear-side or weak spots to attack. Encirclement attack is a form of all-rounded and comprehensive attack. vF_9wO

/Length 324 a. (E) Start up Marketer (C) Geographics 0000000696 00000 n Playing the psychological games is very common to discourage competitors maneuver (movement). Customer satisfaction is the match between customer expectations of the product and the products actual ______. It involves launching a grand offensive attack on several fronts, so that the opponent must protect its fronts, sides, and rears simultaneously. To examine whether the company is pursuing its best opportunities with respect to markets, products, and channels is the purpose of which one of the following types of marketing control? However, to be follower of a leader is not always better option to pursue. ^tR8AP2+ ( mH&j\JKC?vNF' 1*f7/p'^*y_?9~zKkR5}BddN@_Snh/HUNLhFRW\ The leader may or may not be respected by other firms, but other firm has to acknowledge its dominance. List I Market share can be expanded via better distribution system. endstream Though the strategies are based on American economic and marketing systems, they are equally applicable to other countries including India. } ` )5 A Market leader is the one with the biggest market shares and strong market influence, Buffalo Broadway Market Evaluation Strategies and C Buffalo Broadway Market Strategies and Recommendations, Competitive Strategies for the Microprocessor Market Competitive Strategies for the Microprocessor Market. However, there exists opportunities to improve its position.

They can practice one or more of following marketing strategies: It is very popular and widely used option to serve niches. It involves producing and introducing unrelated product to avoid direct confrontation. Some followers prefer to imitate/copy some aspects from the leader, but maintain differentiation in terms of packaging, advertising, sales promotion, distribution, pricing, services, and so forth. They occupy second, third and lower ranks in an industry. 37 0 obj<>stream 0000005655 00000 n Normally, a firm occupies one of six positions in the target market: The firm has control over other competitors.

(iii) Large companies gave up weaker markets and reassign resources to stronger ones. For example, in case gift articles, it is very common to discover different events when gifts can be offered. Defending (Maintaining) Current Market Share: This strategy is based on the theme: Customer-retention is more profitable than customer- creation. At any cost, the current market share must not be endangered. /MediaBox [0 0 612 792] (A) Market challenger Frontal attack involves attacking opponents products, advertising and pricing, and lowering production costs with heavy investment, etc.

In the same way, they can conserve advertising and other promotional expenses. Quality improvement, introduction of low-price products, aggressive sales force, etc., can make sense.

Another option to expand the total market consists of discovering and promoting new uses of the existing products. Attacking the firms of its own size that are not doing the job well and are underfinanced. b.

/F2 9 0 R startxref

(D) Demographics It consists of adopting product innovation to attack leaders position. 19 0 obj /MediaBox [0 0 612 792] A leader will deploy its resources in such a way to avoid the future invasion and create an impression in mind of competitors that leader is capable to safeguard its territories. It is the most indirect attacking option to harm others. ]AynDe-%k:JW,lhV\uQ%yE8=>z$p*i\#g.gxr@}kRgK>r?TtYQ %wO('pN0=Z|tVUs`!5 3))mS@!XrPhr>TT#cmWGT)APaL#?GN!,%A5tC P`:'WzaO [/96wD5} BEdF5WfRWxb|G]M>a{4u+UkWim_BtH5!|3I|M(9'jyBh:i`$"Dq(^ST8ged* It must go for reasonable broadening. The challenger may offer the market everything the opponent offers. 0000002925 00000 n This option is particularly attractive to an aggressor with less resources than opponents.

*. It is also expensive and requires a good deal of resources. How many types of consumer clusters are defined in the VALS framework, which divides consumers according to their buying motivation behavior? While expanding total market, a market leader must continuously defend its current market share against rivals attacks. Success of price-discount strategy works successfully if (1) the challenger can convince that products and services are comparable to that of leaders, (2) buyers must be price- sensitive and feel comfortable to buy, and (3) market leader must not cut its price in spite of challengers attack. Choose the most appropriate answer from the options given below: Defensive marketing refers to the actions of a brand, especially a market leader, to protect its brand and maintain its position as a market leader.

>> xref If a brand fails to maintain its position then it might lose some of its customers to the competitors. << After identifying the customer needs every sales representative has to respond accordingly.

>> This strategy is profitable only when the per cent of sales-rise is more than per cent of price-cut. This option is preferred by the firm with greater resources, otherwise it is proved as a suicide mission. 9V:wxX,a7Q8QDOy!-' Ly!QA&y}Ni6)jny. Ltd.: All rights reserved. However, there must be adequate demand for new product lines. This type of warfare contains making small and intermittent (sudden and irregular) attacks on enemys different territories. :B~Ud{-.[Cu[L9rj? >> <<92E4D4E368B3244E8E9968518ED51C38>]>> UGC Paper 2: Commerce_17th Oct 2020 Shift 1, OCT 1: Teaching Aptitude (Concepts of Teaching) - Beginner Level, Copyright 2014-2022 Testbook Edu Solutions Pvt. In some capital goods industries like steel, cement, chemical, fertilizer, etc., product differentiation is low, service qualities are similar, and price sensitivity is high. Convincing non-users to use the product (market penetration strategy). Other competitors actions do not have a notable impact on its position. 0000002346 00000 n 0000003261 00000 n 18 0 obj <> endobj /F1 6 0 R Attacking the small local and regional firms that are not doing the job well and are underfinanced. << The adapter may choose to sell the products in different markets (country or area) to avoid direct confrontation with the leader. A firm supplies its products only to distinct group of buyers. /F3 12 0 R It consists of offering the customers new and better services with same products. >>

A firm has a lot of promotional offers at its command to encourage more usage per occasion. It consists of offering average or low quality products at much lower price. Sometimes, even large companies can no longer defend all territories. This strategy succeeds if specific group of buyers are ready to pay high price for superior quality-prestigious products. In short, it must continuously monitor its operations to avoid weaknesses that can attract rival attacks. x^Zr6)x3KnfNNdKieQqd}bIo$.va\}~XdLrR7Y&%UPY|q5"{Z \lE" d48chcnKVb~/e1gz]ypG1'L:TZ \\?W-GBgXF)>V$4A./]Sz#)eRVmGYZr9nYI'4SoHK9AN,oFN'r:zb+2X&tb&8N,|:KN,bXu q.^}Oy7Bs> WkPx]-.;Aw``#upT1o0:lE{gk- Ultimately, the guerrilla attack must be backed by a stronger attack to beat the opponent. Prohibited Content 3. Market challengers are known as runner-up firms. Products are marketed secretly to avoid legal complications. The firm doesnt control behaviour of other competitors, but can take independent actions without endangering its long-term position. /ProcSet [/PDF /Text ] Which of the following is an appropriate response? Defining Strategic Objectives and Opponents: First of all, a market challenger firm must define its strategic objectives. For example, Coca-Cola guards its market share against Pepsi-Cola. Market followers prefer to follow the leader doesnt mean that they dont require specific market strategies. Which of the following statements represents marketing ? endstream endobj 28 0 obj<> endobj 29 0 obj<>stream They decide to provide similar offers by copying the market leader.

Choose the most appropriate answer from the options given below: EPRG framework in International Business refers to. 0000001021 00000 n Here, product and packaging may be identical that of leader, but brand name is slightly different, such as Colgete or Colege instead of Colgate and Coka-Cola instead of Coca-cola. This strategy is widely practiced in computer business also.

0000003337 00000 n It consists of attacking leaders by discovering new ways or channels of distribution. 0 The outcomes depend on who has more strengths and endurance. Sometimes, leading firm has to apply the military principle The best defense is a good offense.

/Font << Instead of expanding total market and defending current market shares, sometimes, the market leader prefers to improve profitability by increasing market share. Customer value can be shown as an equation.

(ii) The leader stretches its domain over new territories through market broadening and market diversification Like market leaders, the challengers cannot fight against all opponents. Bajaj Auto in two-wheelers, Tata Motors and Hyundai in cars, Reliance Petro and Essar Oils in refineries, Pepsi-Cola in soft-drink, Procter and Gamble in consumer packaged goods, Vodafone in cellular service providers, Sony and Samsung in cell-phone instruments, etc., are some of the market challengers in India. Mobile defense also called shifting defense is much more than simply protecting the territories. They cannot be simply passive or a carbon copy of leaders. He is the only expert and writer on this topic who provides sufficient insights into the competitive dynamics. It is a product line extension strategy.

x^OK09f3=xr"UuvRI($)wjD)v'G'4iXeM[`BCd_ The firm is in position to exploit opportunities to improve its position. 0000001781 00000 n Therefore, the strategies of flanking defense, preemptive defense, mobile defense, contractor defense, and counteroffensive defense are used by Market Leader. A wise firm can get idea regarding new uses of product from customers tactfully. 5&nayyf'n4$ N1Q^eIopwdUh|J#j _______ is a result of loyal customers who minimise the cost of running a business because the amount spent on getting new customers is far more than retaining the present customers. Companies with low market shares can be highly profitable through effective niching. 3. ), 3nd exercises (like cycling, running, jogging, waking, etc). Users are encouraged to suggest the new/innovative uses of the product. endobj It is a competitive strategy in which a market leader withdraws from a market segment in which it is not strong in order to concentrate on other market segments where it is strong. It consists of launching the high quality products and selling them at premium price. Which is the quadrant with the largest positive cash flow in the BCG matrix? 0000001299 00000 n The third strategy to expand the market consists of convincing the present users to use more of the product per use occasion. 7.2.4 Market, Challenger Brands - strategies to make market leaders sweat, STRATEGIES TO DEVELOP MARKET ACCESS THAT .examined the thesis entitled STRATEGIES TO DEVELOP MARKET. /Parent 2 0 R Company must maintain its strengths today to fight in the future.

/Resources << Sometimes, leader exercises economical or political clout (influence, blow, or power) to discourage the attackers. List II In a typical Funnel, which of these segments would be the largest segments? It must change or adjust constantly to exist. Guerrilla attacks include selective price cuts, intense promotional efforts, more attractive service offers, occasional legal actions, etc. It is also known as strategic withdrawal.

In the same way, niches can be created in hotels, cosmetics, cloths, airways, hospitals, and others. The firm can sell products only to small, medium, or large size customers.

Similarly, effective distribution system can bring down overall selling costs which can further improve profitability. Adding more users in user-class (new market strategy). (B) Psychographics Followers can earn more as they do not bear innovation expenses. A challenger can apply door-to-door selling, online selling, direct selling, opening stores at convenient places, etc., instead of tradition way of distribution. They may seek a special combination of benefits.

(i) Occupying the most desirable position in consumers minds, making the brand almost impregnable 0000006268 00000 n A nicher is the small firm serving only small specific groups of customers called as the niches. It has a a dominant position in the market. 0000000941 00000 n HWr8}Wh oV:$U}iZD"U$O3?4 $*3JUDD>[7`>[=/|q8'HO,Js.jl-(zY<87yUmro7Rt*{z,bUn2]!^.,./[v Economical clout includes applying further price- cut or may announce product up-gradation to delay customers buying the competitors products while political clout includes lobbing legislators to take political actions to hamper or slow down the enemy. Smaller firms normally avoid competing with larger firms by targeting small markets in which large firms have a little or no interest. His work is based on many research projects and studies carried out in the United States of America. sTf63^iR')k>G,t6%u7pzjG~#q%hqVISc| |z' I] tA|"V:PLCjp)vw6bk7&fR mJ#4 z@1C(hzkfBm\FrN#pPU(U~n%8lC[S'z|3E+z @mVwmD}1bN~:Y.1li@PH*{:&Kl8:[N'[|*QlPFj*h8u!g2! Nichers can apply specialization on various aspects. If the actual experience of a customer with goods is more than the _______, the customer will be satisfied. Other firms can challenge, follow or avoid the market leader. A few market leaders have monopoly in the market. The cloned products are openly sold in the market due to different brand names.

Sometimes, it has to incur excessive costs to maintain the number-one position. hfv #%7 94K{C=:E[:jx[ T|~6X{nQ3.z5

It has to adopt innovative practices in all the marketing areas.

Plagiarism Prevention 4. Hindustan Unilever protects its share against Procter and Gamble. 7.2 Company types 7.2.1 Market leader 7.2.2 Market challenger 7.2.3 Market follower .

Quite obviously, such products are sold at low price. Market share can be increased by improving qualities of current products so that customers expecting better qualities can be attracted. It consists of attacking leader by launching a large number of product varieties to give buyers more choice. The firm has unsatisfactory performance and has no opportunity to improve its performance and position.

This is the easiest way to face the leader. The firm desiring to maintain market- leader position has to adopt one or more of following three major strategies: The leader normally gains more when the total market expands.

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