Module 16 Marketing Strategies for Growing Markets By: Dr Shahinaz Abdellatif Objective of this session 1. To discuss the major strategic issues in growth markets Market Shares of leaders & Followers Growth Market Strategies for Market Leaders Overall objective maintain leading share position in the face of competition as market expands Marketing Objective retain existing customers e.g. - maintain/improve satisfaction and loyalty encourage/simplify repeat purchase reduce attractiveness of switching stimulate Selective demand among late adopters stimulate Primary demand to accelerate market growth Strategic Choices for Share Leaders in Growth Markets Flanker strategy - Proactive Flanker strategy - Reactive COMPETITOR OR POTENTIAL COMPETITOR Confrontation strategy Proactive, Reactive Fortress or position - defense strategy LEADER Contraction or Strategic withdrawal Market Expansion Source: Adapted from P. Kotler and R. Singh, ‘Marketing Warfare in the 1980s’, Journal of Business Strategy, Winter 1981, pp. 30-41 Growth Market Strategies for Leaders Fortress:- strengthen current position - beware of bypass attack. Flanker:- develop a second “fighting” brand to compete with challenger. Confrontation:- Protect against loss of share among current customers by meeting or beating a head-tohead competitive offering. Growth Market Strategies for Leaders Market expansion: Increase ability to attract new customers by developing new product offerings or line extensions aimed at a variety of new applications and user segments. Contraction or strategic withdrawal: Increase ability to attract new customers in selected high-growth segments by focusing offerings and resources on those segments; withdraw from smaller or slower-growing segments to conserve resources. Growth Strategies for Leaders C:\Users\srashad\Desktop\Marketing Strategies for leaders.doc Growth Market Strategies for Followers Overall objective Attain market sha