Roles of Business in Competitive Marketing
Posted: Mon Jan 20, 2025 5:03 am
According to F. Kotlet's concept, depending on its market share, a business can play one of four roles. Let's look at each of them in more detail.
Leader (market share 40%)
Such an enterprise feels more confident than other companies. Many companies try to get closer to the market leader, which is often the first to change its pricing policy and stimulate demand. To maintain its status, the leader can use the following strategies:
“defense of positions” – creation of barriers (price, licensing) in the main areas of attack of competitors;
"flank defense" - strengthening key areas for active defense and counterattack;
"preemptive defense" - getting ahead of competitors by using special signals that reduce the effectiveness of the attack (for example, informing consumers about an upcoming price reduction);
"counteroffensive" - having survived the attack, the company waits, and then strikes at the competitor's weak point (for example, demonstrating the reliability of its product and the competitor's weak points);
"mobile defense" - the company expands its impact through diversification of production and identification of deep consumer needs;
"constrictive defense" - the company leaves weakened market segments and focuses on the most promising ones.
Increase Your Profits by 10X: 5 Key Metrics You Must Track
Alexander Kuleshov
Alexander Kuleshov
General Director of Sales Generator LLC
Read more posts on my personal blog:
After working with over 300 online projects , I can guarantee: monitor these metrics weekly and your company will not only survive, but also increase its profits by 10 times!
In the context of sanctions and crisis, knowing the ROI of your advertising decides whether your business will be successful. Tracking these 5 critical indicators is the key to your prosperity.
What you get for free:
5 Key Metrics to Increase Profits by 220%
The Secret ROI Formula: Instant Advertising Efficiency Calculator
Anti-crisis Solutions Matrix: Find paytm database the Perfect Strategy for Your Business in 15 Minutes
We have prepared all the documents and templates with formulas for you. And yes, it is FREE:
Download documents for free
Already downloaded
153326
Leadership contender (30% market share)
Such a company feels confident only if it strikes first. There are several ways to attack:
"Frontal attack" - is carried out in a number of directions (new products, cost, advertising and sales). Quite an expensive method;
"Encirclement" - the company attacks the entire or a significant market territory of the leader;
“Bypass” – a company begins to produce fundamentally new products, moves to new markets or uses other technologies;
"Gorilla Attack" - a company carries out several small attacks using not entirely correct methods that demoralize a competitor.
Leader (market share 40%)
Such an enterprise feels more confident than other companies. Many companies try to get closer to the market leader, which is often the first to change its pricing policy and stimulate demand. To maintain its status, the leader can use the following strategies:
“defense of positions” – creation of barriers (price, licensing) in the main areas of attack of competitors;
"flank defense" - strengthening key areas for active defense and counterattack;
"preemptive defense" - getting ahead of competitors by using special signals that reduce the effectiveness of the attack (for example, informing consumers about an upcoming price reduction);
"counteroffensive" - having survived the attack, the company waits, and then strikes at the competitor's weak point (for example, demonstrating the reliability of its product and the competitor's weak points);
"mobile defense" - the company expands its impact through diversification of production and identification of deep consumer needs;
"constrictive defense" - the company leaves weakened market segments and focuses on the most promising ones.
Increase Your Profits by 10X: 5 Key Metrics You Must Track
Alexander Kuleshov
Alexander Kuleshov
General Director of Sales Generator LLC
Read more posts on my personal blog:
After working with over 300 online projects , I can guarantee: monitor these metrics weekly and your company will not only survive, but also increase its profits by 10 times!
In the context of sanctions and crisis, knowing the ROI of your advertising decides whether your business will be successful. Tracking these 5 critical indicators is the key to your prosperity.
What you get for free:
5 Key Metrics to Increase Profits by 220%
The Secret ROI Formula: Instant Advertising Efficiency Calculator
Anti-crisis Solutions Matrix: Find paytm database the Perfect Strategy for Your Business in 15 Minutes
We have prepared all the documents and templates with formulas for you. And yes, it is FREE:
Download documents for free
Already downloaded
153326
Leadership contender (30% market share)
Such a company feels confident only if it strikes first. There are several ways to attack:
"Frontal attack" - is carried out in a number of directions (new products, cost, advertising and sales). Quite an expensive method;
"Encirclement" - the company attacks the entire or a significant market territory of the leader;
“Bypass” – a company begins to produce fundamentally new products, moves to new markets or uses other technologies;
"Gorilla Attack" - a company carries out several small attacks using not entirely correct methods that demoralize a competitor.