For additional information and characterization, see chapter section. Show Page: 348Level of difficulty: Hard106.The market leader must work hard to stay on top of its market. Three strategiescan be crafted to achieve this objective. Describe these three strategies and anyrelevant sub-strategies that are necessary for accomplishing the primary objective.  Part 4: Building Strong Brandsstrategies as outlined in the chapter section); and, (3) expanding market share.For additional information on each of the above, see the chapter section.Pages:350–355Level of difficulty: Hard107.Assume that your organization has chosen to pursue a market leader strategy ofthe flank defense. Describe what such a strategy might be. Page: 354Level of difficulty: Medium108.Assume that you are the marketing manager for a market challenger that isseeking to attack the market leader with an encirclement attack. Describe theencirclement attack and evaluate probable success using this strategy. Page: 357Level of difficulty: Hard109. Characterize the four broad strategies often employed by market followers tomeet their competitors.Pages: 360–361Level of difficulty: Hard 110.The market nicher is a specialist. Characterize five niche specialist roles that canbe assumed by the market nicher. •Share of mind- The percentage of customers who named the competitor inrespondingtothestatement,"Namethefirstcompanythatcomestomindinthisindustry."•Share of heart- The percentage of customers who named the competitor inresponding to the statement, "Name the company from which you would prefer to buythe product."Companies that make steady gains in mind share and heart share will inevitably make gains inmarket share and profitability.Competitive Strategies for Market LeadersExpanding the Total MarketNew customers: Potential new users maybe divided into three groups:•Those who might use it but do not (market-penetration strategy)•Those who have never used it (new-market segment strategy)•Those who live elsewhere (geographical-expansion strategy)More usage: Two ways of increasing usage•Increasingthelevelorquantityofconsumption:throughpackagingorproductdesign or by increasing the availability of product•Increasing the frequency of consumption: identifying completely new and differentways to use the brand and communicate the advantages of using the brand morefrequentlyDefending Market ShareThemostconstructiveresponseiscontinuousinnovation.Theleaderleadstheindustryindeveloping new product and customer services, distribution effectiveness, and cost cutting. Itkeeps increasing its competitive strength and value to customers.•Position Defense:It involves occupying the most desirable market space in the mindsof the consumers•Flank Defense:the market leader should also erect outposts to protect a weak front orpossibly serve as an invasion base for counterattack.•Preemptive Defense:A more aggressive maneuver is to attack before the enemy startsits offense. A company can launch a preemptive defense in several ways•Counteroffensive Defense:the leader can meet the attacker frontally or hit its flank orlaunch a pincer movement. An effective counterattack is to invade the attacker's mainterritory so that it will have to pull back to defend the territory.•Mobile Defense:In mobile defense, the leader stretches its domain over newterritoriesthatcanserveasfuturecentersfordefenseandoffensethroughmarkebroadening and market diversification.•Contraction Defense:giving up weaker territories and reassigning resources tostronger territories.SelectingCompetitors:Strong versus Weak:Weak require fewerresources per sharepoint gained. The firmshould also competewith strongcompetitors to keepup with the best.Close versus Distant:Most companiescompete withcompetitors whoresemble them themost"Good" versus "Bad":should support itsgood competitors(Play by the rules)and attack its badcompetitors. Expanding Market ShareA company should consider four factors before pursuing increased market share:•The possibility of provoking antitrust action•Economic cost•Pursuing the wrong marketing-mix strategy•The effect of increased market share on actual and perceived quality Which defense is used to erect outposts to protect a weak front or possibly serve as an invasion base for counterattack?(b)Flank defense: The market leader should erect outposts to protect a weak front or support a possible counter attack.
What are defense strategies of a market leader?the means used by companies in market leadership positions to defend their market share from attacks by challengers; six common defence strategies are position defence, flanking defence, pre-emptive defence, counter-offensive defence, mobile defence and contraction defence.
How can a market leader defend its market share?Defending market share strategy:
In this strategy, the leader firm must keep its costs down, and its price must be consistent with the value that customers see in the product.
What is counteroffensive defense in marketing?a competitive strategy in which a strong market leader retaliates against a smaller rival which has attacked it; the manner of retaliation might include a dramatic increase in advertising and promotion, or price-cutting, or the simultaneous launch of innovative new products. +1 -1.
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The market leader should erect outposts to protect a weak front or support a possible counterattack
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