Page 319 - DMGT408DMGT203_Marketing Management

Marketing Management/Essentials of Marketing

Notes 13.8 Keywords

Adapter Strategy: Strategy in which a business takes or copies a leader’s product, improves it
and sells in different markets.

Competitive Advantage: The strategic advantage one business entity has over its rival entities
within its competitive industry.
Counterfeit Strategy: Follower makes duplicates of leader products and sells at very low prices
through grey market and dealers of doubtful integrity
Flanker Brand: Extension of an existing brand to create another product or brand with increased
market share
Guerrilla Attack Strategy: Strategy in which the challenger makes a series of surprise attacks in
limited geographic areas against its established target competitor.
Harvesting Strategy: Planned discontinuation of a product at the end of its life cycle, while
extracting maximum profit from its sales

Niche Marketer: Companies that concentrate all marketing efforts on a small but specific and
well defined segment of the population
Pre-emptive Strategy: An offensive strategy to defend leadership position before a competitor
even starts attacking the market-share leader

13.9 Review Questions

1. In what type of competitive market structure does Maruti Udyog operate? Analyse the
five forces for the company.

2. ‘Competition is a great a concern for marketers’. Discuss.
3. Examine the influence of competitive market forces in determining long-term market
attractiveness.

4. A leading beverage marketing company wants to start snacks and coffee retail outlets in
large cities across India. What products and companies should it consider as competitors?
5. HUL is a market leader in the FMCG segment in India. What competitive strategies
should it follow to combat any competition from the likes of P&G and ITC?
6. Discuss the market conditions under which it is suitable for the companies to stay in a
declining product-market.
7. Discuss offensive strategies vis-à-vis defensive strategies.
8. Discuss two strategies suitable for a challenger in detergent market.
9. Explain the factors that affect strategy choice during the decline stage.

10. Some regional players produce private label brands for large retailers. Is it a viable
competitive option? Justify your answer.

Answers: Self Assessment

1. False 2. False

3. True 4. Offensive
5. Defensive 6. True

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