【正文】 4) Counteroffensive defense.5) Mobile defense.a. Market broadening.b. Market diversification.6) Contraction Defense.a. Strategic withdrawal. Figure shows the six defensive strategies. Review Key Definitions here: continuous innovation, responsive marketer, anticipative marketer, creative marketer, position defense, flank defense, preemptive defense, counteroffensive defense, mobile defense, and contraction defenseExpanding Market Share Market leaders can improve their profitability by increasing market share. A) Gaining increased share in the served market does not automatically produce higher profits. B) A pany should consider four factors before pursuing increased market share:1) The possibility of provoking antitrust action.2) Economic cost. Figure shows that profitability might fall with further marketshare gains after some level. 3) Pursuing the wrong marketingmix strategy.4) The effect of increased market share on actual and perceived quality.OTHER COMPETITIVE STRATEGIES Firms that occupy second, third, and lower ranks in an industry are often called runnerup, or trailing firms. These firms can adopt one of two postures. Each can attack the leader and others in an aggressive bid for further market share (market challengers), or they can play ball and not “rock the boat” (market followers). MarketChallenger Strategies Many market challengers have gained ground or even overtaken the leader. Defining the Strategic Objective and Opponents(s) A market challenger must first define its strategic objective. The challenger must decide whom to attack:A) It can attack the market leader.B) It can attack firms of its own size that are not doing the job and are underfinanced. C) It can attack small local and regional firms. Choosing a General Attack Strategy We can distinguish among five attack strategies: A) Frontal.B) Flank.C) Geographic. D) Segmental.E) Encirclement.F) Bypass.1) Diversifying into unrelated products.2) Diversifying into new geographical markets.3) Technological leapfrogging into new technologies .G) Guerrilla Warfare Review Key Definitions here: frontal attack, flank attack, geographic attack, segmental attack, encirclement attack, bypass attack, and guerrilla warfareChoosing a Specific Attack StrategyA) The challenger must go beyond the five broad strategies and develop more specific strategies:1) Price discount.2) Lower price goods.3) Value priced goods and services.4) Prestige goods.5) Product proliferation.6) Product innovation.7) Improved services.8) Distribution innovation.9) Manufacturingcost reduction.10) Intensive advertising promotion.B) A challenger’s success depends on bining several strategies to improve its position over time. MarketFollower Strategies Many panies prefer to follow rather than challenge the market leader. A) A market follower must know how to hold current customers and win a fair share of new customers. B) Each follower tries to bring distinctive advantages to its target market—location, services, and/or financing. C) Four broad strategies can be distinguished:1) Counterfeiter.2) Cloner.3) Imitator.4) Adapter.MarketNicher Strategies An alternative to being a follower in a large market is to be a leader in a small market, or niche. A) Firms with low shares of the total market can be highly profitable through smart niching. B) Such panies tend to offer high value, charge a premium price, achieve lower manufacturing costs, and shape a strong corporate culture and vision. C) Why is niching so profitable? 1) The main reason is that the market nicher ends up knowing the target customers so well that it meets their needs better than other firms selling to this niche. The nicher achieves high margin, whereas, the mass marketer achieves higher volume. D) Nichers have three tasks:1) Creating niches.2) Expanding niches.3) Protecting niches.E) Niching carries a major risk in that the market niche might dry up or be attackedF) Because niches can weaken, the firm must continually create new ones. G) Multiple niching is preferable to single niching. BALANCING CUSTOMER AND COMPETITOR ORIENTATIONS We have stressed the importance of a pany’s positioning itself petitively as a market leader, challenger, follower, or nicher. Yet a pany must not spend all its time focusing on petitors. CompetitorCentered Companies A petitorcentered pany sets its course based on reactions to its petitors. A) This kind of planning has some pluses and minuses. 1) On the positive side, the pany develops a fighter orientation.2) On the negative side, the pany is too reactive. a. Rather than formulating and executing a consistent, customerorientated strategy, it determines its moves based on petitors’ moves. CustomerCentered Companies A customercentered pany focuses more on customer developments in formulating its strategies:A) The customercentered pany is in a better position to identify new opportunities and set a course that promises to deliver longrun profits. 343