how can market leaders expand the total market and defend market share?
TRANSCRIPT
How can market leaders expand the total market and defend market share
Brand, product, or firm that has the largest percentage of total sales revenue (the market share) of a market.
Market leader
Expanding total market demand
BY ADDING NEW CUSTOMERS
Market penetration strategy
1) those who might use it but do not
New market segmentation strategy
2)Those who have never used it
Geographical expansion strategy
3)Those who live elsewhere
More usage
Through increasing the amount, level and frequency of consumption
Amount through packaging and product redesign
Larger package sizes
Increasing the level of consumption
Frequency of consumption
Identifying additional opportunities to use the brand
Tying the product to holidays and festivals
Identifying new ways to use the brand
Advertise ways to use product differently
Defending market share
Developing new products and customer services, distribution effectiveness and cost cutting
Continuous innovation
Proactive marketing
• Proactive firms are:• Ready to take risks and make mistakes
• Have a vision of the future and of investing on it
• Have the capabilities on innovate • Are flexible and nonbureaucratic• Have many managers who think proactively
Defensive marketing•Occupying most desirable market space in consumer’s mind•Ex: tide, pampers
Position defence
•Protect weak fronts and support a possible counterattack
Flank defence
•Achieve broad market envelopment that signals competitors not to attack•Introduce a stream of products and announce them in advance to make competitiors shift focus elsewhere
Pre-emptive defence
•Exercise of economic and political clout•Use revenue from profitable products to subsidize weaker products
Counteroffensive
defence
•Market broadening: Shifting focus to more generic needs•Market diversification: Entering unrelated industries
Mobile defence