Market Structure

1104 WordsDec 1, 20105 Pages
I. MARKET STRUCTURE We can classify firms by the roles they play in the target market: leader, challenger, follower, or nicher. Suppose a market is occupied by the firms shown in Figure 1.1. Forty percent of the market is in the hands of a market leader; another 30 percent is in the hands of a market challenger; another 20 percent is in the hands of a market follower, a firm that is willing to maintain its market share and not rock the boat. The remaining 10 percent is in the hands of market nichers, firms that serve small market segments not being served by larger firms. 1.1 . Market Leader Many industries contain one firm that is the acknowledged market leader. This firm has the largest market share in the relevant product market,…show more content…
MORE USAGE Usage can be increased by increasing the level or quantity of consumption or increasing the frequency of consumption. The amount of consumption can sometimes be increased through packaging or product design. Larger package sizes have been shown to increase the amount of product that consumers use at one time. The usage of "impulse" consumption products such as soft drinks and snacks increases when the product is made more available. Increasing frequency of use, on the other hand, involves identifying additional opportunities to use the brand in the same basic way or identifying completely new and different ways to use the brand. In some cases, the product may be seen as useful only in certain places and at certain times, especially if it has strong brand associations to particular usage situations or user types. To generate additional usage opportunities, a marketing program can communicate the appropriateness and advantages of using the brand more frequently in new or existing situations and/or remind consumers to actually use the brand as close as possible to those situations. The wine industry launched a number of initiatives in the late 1990s to attract Gen-Xers and convince them wine was a "casual, every day libation to
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