Chapter 11 - Competitive Strategies

1. A market leader has the largest market share in the relevant product market. To remain dominant, the leader looks for ways to expand total market demand and attempts to protect and perhaps increase its current share. 

2. A market challenger attacks the market leader and other competitors in an aggressive bid for more market share. There are five types of general attack; challengers must also choose specific attack strategies. 

3. A market follower is a runner-up firm willing to maintain its market share and not rock the boat. It can play the role of counterfeiter, cloner, imitator, or adapter. 

4. A market nicher serves small market segments not being served by larger firms. The key to nichemanship is specialization. Niches develop offerings to fully meet a certain group of customers’ needs, commanding a premium price in the process. 

5.  As important as a competitive orientation is in today’s global markets, companies should not overdo the emphasis on competitors. They should maintain a good balance of consumer and competitor monitoring. 

6. Because economic conditions change and competitive activity vary, companies normally must reformulate their marketing strategy several times during a product’s life cycle. Technologies, product forms, and brands also exhibit life cycles with distinct stages. The life cycle stages are usually introduction, growth, maturity, and decline. Most products today are in the maturity stage.