Maruti Suzuki India tries to protect its market against Tata Motors and Hyundai Motors. xb```"ccb'5N>E\LkO->9SaKez. 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. Planned contraction doesnt mean market abandonment (fleeing from the market), but rather giving up weaker territories and concentrating on stronger territories. It has less-than-average opportunities to improve its position.

Ultimately, the guerrilla attack must be backed by a stronger attack to beat the opponent. Therefore, the strategies of flanking defense, preemptive defense, mobile defense, contractor defense, and counteroffensive defense are used by Market Leader. 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. (A) Buying behaviour The strategy works successfully only when there are sufficient number buyers who are interested in the low-priced and low-quality products. It has to plague holes to keep the enemy away. It is more applicable to edible-class products. 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. 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. The purpose of such attack is to confuse, harass and demoralize opponents, and finally make permanent place in the market. The leader cannot remain passive when competitors attacks in forms of price-cut, product modification, promotion blitz (bombardment), or any time of invasion on its sales territories. (C) Geographics Which of the following statements represents marketing ? (iii) Large companies gave up weaker markets and reassign resources to stronger ones. Market diversification calls upon moving quickly into unrelated industries to strengthen its position. 18 20 >> 0000001156 00000 n Customers can easily distinguish imitated product from original one. In the same way, they can conserve advertising and other promotional expenses. Such news intimidate (threaten) the competitors who decide to cut price or enter the market with the existing or new product. (B) Psychographics The firm has unsatisfactory performance and has no opportunity to improve its performance and position. Though the strategies are based on American economic and marketing systems, they are equally applicable to other countries including India. However, market followers always react strongly in case of any loss. Market followers prefer to follow the leader doesnt mean that they dont require specific market strategies. >> << Privacy Policy 8. Prohibited Content 3. The cloned products are openly sold in the market due to different brand names. If a brand fails to maintain its position then it might lose some of its customers to the competitors. Sometimes, a company tries to convince users to use the product more frequently to increase consumption. It is a simple way to follow the leader. shift into unrelated industries. /F4 15 0 R The extent to which the increased market share results into improved profitability depends on a lot of variables.

(B) Market leader 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. 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- Naturally, it can enjoy more freedom to select suitable strategic options. Which of the following equations is true? 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. The firm can sell products only to small, medium, or large size customers. Research and development department must be active to grab emerging market opportunities.

The firm serves customers of only specific region or area of the world, for example, specific need of the people living in the hilly area. They can achieve high margin while large companies can achieve high volume. Market leader has the largest market share in the relevant product in the industry. IBMs attack on Microsoft is the best example of frontal attack. 4 0 obj >> 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. The adapter may choose to sell the products in different markets (country or area) to avoid direct confrontation with the leader. A small finance company deals with only car loans or personal loans. Attacking the small local and regional firms that are not doing the job well and are underfinanced. (b) Contraction defense

Therefore, a challenger firm has to select the specific opponent to attack. (ii) The leader stretches its domain over new territories through market broadening and market diversification Other firms can challenge, follow or avoid the market leader. 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. 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. /Type /Page 0000005621 00000 n 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. 7.2 Company types 7.2.1 Market leader 7.2.2 Market challenger 7.2.3 Market follower . When market leaders territory is attacked, an effective counter attack is to invade the enemys territories so that it has to pull back some of its troops (resources) to defend the territories. Company must maintain its strengths today to fight in the future. 0000002704 00000 n Some followers are capable to challenge but they prefer to follow. The leader doesnt care for imitator until imitator attack the leader aggressively. This strategy succeeds if specific group of buyers are ready to pay high price for superior quality-prestigious products. 0000000016 00000 n endstream Guerrilla attacks include selective price cuts, intense promotional efforts, more attractive service offers, occasional legal actions, etc. /Contents 4 0 R (i) Occupying the most desirable position in consumers minds, making the brand almost impregnable 0000000696 00000 n Then, the challenger has to decide on the opponents to attack. Here, company must do something to snatch the market share from the pockets of competitors. But, one must be aware that followership is not always rewarding path to pursue. Heavy advertising, aggressive sales force, effective sales promotion, and attractive publicity efforts can help expanding market share faster relative to competitors. The firm prefers to operate one-type of end-use customers, for example, a legal advisory firm can handle only criminal cases, or a fashion designer can work only for a few film stars. (E) Start up Marketer A wise firm can get idea regarding new uses of product from customers tactfully. 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. vF_9wO In a typical Funnel, which of these segments would be the largest segments? The market challenger can apply lower cost to aggressive pricing. Market leaders use this strategy to gain an advantage over competitors and upset industry balance. To attract price-sensitive customers, leader can practice price-cut strategy. Instead of expanding total market and defending current market shares, sometimes, the market leader prefers to improve profitability by increasing market share. Normally, a firm occupies one of six positions in the target market: The firm has control over other competitors. Sometimes, it has to incur excessive costs to maintain the number-one position. /Length 1550 Customer value can be shown as an equation. And, in segmental attack, a challenger spots the markets, which are not served by the leaders. 19 0 obj It is like: To attack the enemy earlier to avoid enemys attack. >> /Filter /FlateDecode A few market leaders have monopoly in the market. Customer expect almost all retailers to provide certain services.

Which of the following is NOT an effective way to identify customer needs? Nichers can gain comparatively high returns. /Length 324 Smaller firms normally avoid competing with larger firms by targeting small markets in which large firms have a little or no interest. Such strategy is widely practiced in consumer durables. More usage may be in forms of more quantity, numbers, time, amount, intensity, and so on. hfv #%7 94K{C=:E[:jx[ T|~6X{nQ3.z5 The firm tries to fill the gap by finding needs and satisfying them. 0000001299 00000 n (A) Market challenger (D) Market Nicher The firm has unsatisfactory performance. xref Some followers prefer to adapt the leaders products and improve them. A firm supplies its products only to distinct group of buyers. For example, a firm can supply one or two components only to large companies. 0000025613 00000 n Here, the purpose is to protect weak sides or fronts. Another option to expand the total market consists of discovering and promoting new uses of the existing products. /ProcSet [/PDF /Text ] How should market challenger attack market leader? /Font << The strategies of flanking defense, preemptive defense, mobile defense, contractor defense and counter offensive defense is used by which market player? /Resources << Market challengers are capable to attack the leader and other competitors. It offers goods or services for celebrating the events of target buyers. 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. 18 0 obj <> endobj

Normally, such attacks are practiced by smaller firms against lager firms. g#$Z{1+(BVqS];%,U$#c$d.Rt|f]7XmgFso3 ` o{ b. Diversifying into New Geographical Markets: It involves launching the products in such areas where competitors are absent. In the same way, the companys research and development wing can also contribute in discovering the innovative uses of the product. 0000002925 00000 n These are Market leader, Market challenger, Market follower and Market nicher. They have the special skills to serve the niches in a superior fashion and can gain certain economies through specialization. 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. ), 3nd exercises (like cycling, running, jogging, waking, etc). TOS 7. Protection against equity. <<

This strategy can attract more customers. In some capital goods industries like steel, cement, chemical, fertilizer, etc., product differentiation is low, service qualities are similar, and price sensitivity is high. /Filter /FlateDecode It must change or adjust constantly to exist. 0000006035 00000 n c. Leapfrogging into New Technologies to Replace Existing Products: It involves researching and developing patiently new technologies and launching an attack with superior products. Sometimes, capable challengers can overtake the leader, too. However, there exists opportunities to improve its position. It involves continuous innovation, diversification, price-cuts, improving distribution, and strengthening promotional efforts.

It is also known as strategic withdrawal. Leader firm has to undertake frontal, i.e., head-on attack in case of rapid erosion of market share. The challenger concentrates on opponents less-secured, rear-side or weak spots to attack. This attacking option is widely practices in Banking, insurance, cell-phones, airways, etc. The third strategy to expand the market consists of convincing the present users to use more of the product per use occasion. endstream endobj 28 0 obj<> endobj 29 0 obj<>stream endobj List II /ProcSet [/PDF /Text ] However, there must be adequate demand for new product lines. Quality improvement, introduction of low-price products, aggressive sales force, etc., can make sense. 3 0 obj Counteroffensive indicates responding enemys attack with a counterattack. Followers must keep manufacturing cost low and offer better quality products with satisfactory services. His work is based on many research projects and studies carried out in the United States of America. He adopted many terms from military science to suggest suitable strategic actions against the enemy. The firms prefer to follow leader rather than to challenge are called the followers. Market for automobiles needs to be segmented on the basis of: Figure 4 shows the market challengers three-stage marketing strategies. The success of the strategy depends on how far challenger can exhibit superiority over the leader. Match the items of List I with the items of List II and choose the correct answer from the code given below. Sometimes, leader exercises economical or political clout (influence, blow, or power) to discourage the attackers. However, to be follower of a leader is not always better option to pursue. b. They can practice one or more of following marketing strategies: It is very popular and widely used option to serve niches. 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 . It has to adopt innovative practices in all the marketing areas. Naturally, when total market or the industry expands, major player will gain more. stream Content Guidelines 2.

Companies with low market shares can be highly profitable through effective niching. For example, Coca-Cola guards its market share against Pepsi-Cola. Disclaimer 9.

For example, designing special two-wheeler for handicapped people or serving special foods to people who are suffering from certain diseases like diabetes. The firm has satisfactory performance, but has to suffer due to dominant and strong competitors. The outcomes depend on who has more strengths and endurance. The firm produces or sells only one product or product line, for example, it sells only socks, ties, or tie pins. a. MX6_uLp2,W bg*V^O"R=$)EQH,a0#XF}c/AIaI>Bs2/cmQ$gKq|%"b Naturally, flank attacks are more likely to be successful than the frontal attacks. It can be done through Market broadening i.e. Copyright 10. Defining Strategic Objectives and Opponents: First of all, a market challenger firm must define its strategic objectives. 0000001781 00000 n The firm is in position to exploit opportunities to improve its position. Similarly, it can be extended to durable products, too. A firm may undertake a few major attacks or continuous minor attacks for longer time. This is common strategy in auto-parts and electronics products. Such protection attempts serve as invasion base for counterattack, if needed. It consists of offering the customers new and better services with same products. Like market leaders, the challengers cannot fight against all opponents. They make necessary changes/improvements in the original products and develop little different products. Which of the following is an appropriate response? startxref A little mistake can plunge the leader into second or third position. They have to remain alert for all the time as they can be invaded any time by the large competitors. This involves that the market leader will attack the attacker in its main territories so that the attacker will have to put back some resources for the attacked territories and will have to divert its attention from launching an attack on the market leader. They design special products with distinctive features, qualities, uses, and value for special group of limited customers. /F2 9 0 R Choose the most appropriate answer from the options given below: Arab Culture and Islamic Studies Previous Year Papers, Indian Culture Previous Year Question Papers, Adult Education/ Continuing Education/ Andragogy/ Non-Formal Education Question Papers, HR Management labour welfare Personnel Management Industrial Relations Labour Social Welfare Previous Year Papers, Library and Information Science Previous Year Papers, Comparative Study of Religions Previous Year papers, Buddhist Jaina Gandhian and Peace Studies Previous Year Papers, Mass Communication and Journalism Previous Question Papers, Sanskrit Traditional Subjects Previous Year Papers, Economics/Rural Economics Previous Year Papers, Defence and Strategic Studies Previous Year Papers, Tribal and Regional Language/Literature Previous Year Question Papers, Folk Literature Previous Year Question Papers, Comparative Literature Previous Year Question Papers, Performing Art Previous Year Question Papers, Archaeology Previous Year Question Papers, Criminology Previous Year Question Papers, Environmental Sciences Previous Year Question Papers, Women Studies Previous Year Question Papers, International and Area Studies Paper 2-3 Previous Year Question Papers, Forensic Science Previous Year Question Papers, Tourism Administration and Management Previous Year Papers, Computer Science and Applications Previous Year Papers, Human Rights and Duties Previous Year Papers, Mass Communication and Journalism Syllabus, General Paper Research and Teaching Aptitude exam, Computer Science and Applications Syllabus, Social Medicine & Community Health Syllabus, Tourism Administration and Management Syllabus. The company leaks the news by any of the media that it is considering to cut price and/or planning to build another plant. Market share can be increased by improving qualities of current products so that customers expecting better qualities can be attracted.

It indicates bypassing (i.e., ignoring or avoiding) the enemy and attacking easier markets to broaden ones resource base.

It has to constantly adjust its strategies to continue enjoying the better-than-average opportunities. Which of the following is NOT an element of customer services? It is also expensive and requires a good deal of resources. Let us analyse relevant marketing strategies for different position holders. However, it is less expensive compared to other attacks. } ` )5 Convincing non-users to use the product (market penetration strategy). A niche is a more narrowly defined small market (limited number of buyers) whose needs are not being well-served by existing sellers. A challenger attacks the opponents strengths rather than its weaknesses. Content Filtrations 6. 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. trailer While expanding total market, a market leader must continuously defend its current market share against rivals attacks.

At the same time, they must enter new markets as and when there are opportunities. The leader may or may not be respected by other firms, but other firm has to acknowledge its dominance. 37 0 obj<>stream The best strategy in this situation is a planned contraction, i.e., strategic withdrawal.

The leader stretches or expands its domain (area) over new territories that can serve as the future centers for offense as well as defense. It is more preparation for war than war itself. Both direct and indirect channels and overall physical distribution system must be modified so that customers can avail the products with the least difficulties. 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.

It involves launching a grand offensive attack on several fronts, so that the opponent must protect its fronts, sides, and rears simultaneously. For example, a footwear company can create niches by designing shoes for different sports (like crickets, hokey, athletes, golf, etc. In India, well-known market leaders are Maruti Suzuki in cars, Hero Honda in two-wheelers, Hindustan Unilever in consumer packages goods, Coca-Cola in soft-drink, McDonalds in fast food, Life Insurance Corporation in life-insurance, and so forth. They cannot be simply passive or a carbon copy of leaders. stream They decide to provide similar offers by copying the market leader. Due to improved production efficiency, a firm can sell better-quality products even at low price. It consists of adopting product innovation to attack leaders position. /F3 12 0 R The challenger may offer the market everything the opponent offers. 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 /Contents 19 0 R In the same way, niches can be created in hotels, cosmetics, cloths, airways, hospitals, and others. Figure 2 shows broad strategies for different competitors. Quite obviously, such products are sold at low price. It consists attacking the leader by increasing advertising and promotional expenditures. They must know how to hold current customers and win a fair share of new customers. Which of the following is NOT one of the services? The most basic defense strategy is to build an impregnable (indestructible, unconquerable, or unbeatable) fortification (protecting fort) around ones territory to keep the opponents away. It has a a dominant position in the market. Obviously, it leads other firms in new product development, price change, distribution coverage, promotional activities, and novel experiments. /F2 9 0 R

HTMk0sl!1v~Pg It consists of launching the high quality products and selling them at premium price. Similarly, effective distribution system can bring down overall selling costs which can further improve profitability. >>

Playing the psychological games is very common to discourage competitors maneuver (movement). 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 ? Normally, most of market challengers strategic objective is to increase market share. A firm has a lot of promotional offers at its command to encourage more usage per occasion. c. Winning competitors customers (aggressive strategy). Nichers have to perform three main tasks creating niches, expanding niches, and protecting niches. It calls upon expanding current product lines by adding new models, varieties or items with attractive features (colours, sizes, shapes, weights, get-ups, etc.) They have to remain alert all the time leadership to maintain their leader-position. Choose the most appropriate answer from the options given below: EPRG framework in International Business refers to. This strategy is profitable only when the per cent of sales-rise is more than per cent of price-cut. They may seek a special combination of benefits. Many Japanese companies have practiced this strategy and developed superior products. They occupy second, third and lower ranks in an industry. Customer satisfaction is the match between customer expectations of the product and the products actual ______. >> Once strategic objectives are defined and opponents are selected, the challenger can apply following attacking options: A frontal or head-on attack is an aggressive attack strategy. Market challengers are known as runner-up firms. 2. It involves producing and introducing unrelated product to avoid direct confrontation. ^tR8AP2+ ( mH&j\JKC?vNF' 1*f7/p'^*y_?9~zKkR5}BddN@_Snh/HUNLhFRW\ A leader must improve production efficiency to reduce overall costs. Flank defense consists of erecting/setting outposts to protect weak fronts that are vulnerable to be attacked. /F1 6 0 R It consists of attacking leaders by discovering new ways or channels of distribution. %%EOF It consists of attacking leader by launching a large number of product varieties to give buyers more choice. 2017 Dodge Challenger / Challenger SRT CANADIAN .2017 CHALLENGER / CHALLENGER SRT | Canadian Specifications, MARKET NEUTRAL STRATEGIES - WAIS .WHY INVEST IN MARKET NEUTRAL STRATEGIES? iii. %PDF-1.4 % It is a competitive marketing strategy used by a. Frontal attack involves attacking opponents products, advertising and pricing, and lowering production costs with heavy investment, etc. Total market can be expanded in four different ways: The leader firm must try to add new users. Which is the quadrant with the largest positive cash flow in the BCG matrix? (c) Position defense