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Threats from product form and category competitors

Most marketing managers consider their product form or product category competitors to be the most serious threats. What are the pros and cons of this perspective. Rate the intensity of competition.

Given the two brand names Nabisco and Mercedes Benz choose several brand extensions that you believe make sense and several that do not. Why?

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STEP 1

The pros of considering the product form or product category competitors to be the most serious threats:

? The pros are that the managers focus on the rivals whose actions can directly and immediately affect their market share. Second, any action by the product form or product category competitor is likely to reduce the sales in the short run and this can affect the emoluments of the marketing managers. Third, any technological advantage achieved against product form or product category competitors can lead to quick profits. For example, the current edition of Microsoft SQL Server 2005 shows technical superiority to DB2 and is likely to affect its sales. Fourth, any price change affected by product form or product category competitors can immediately affect their own prices and profits. Fifth, product form or product category competitors can intrude directly into a niche occupied by the brand of a marketing manager and can displace him from the niche. Sixth, product form or product category competitors have the greatest potential of eroding brand equity.

STEP 2

The ...

Solution Summary

This solution gives you a detailed discussion on product form and categories.

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