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Home→The Westburn Dictionary of Marketing→M→market challenger strategy

market challenger strategy

Definition:
One of four basic competitive marketing strategies identified by Philip Kotler (Marketing Management, 4th edn, 1980) the others being MARKET LEADER, MARKET FOLLOWER and MARKET NICHE. Market challengers are seen as those firms in an industry/market which are next, in terms of market share, to the leaders and are actively challenging the leaders for their dominant position. In essence the challenger has three strategic alternatives open to him: (a) direct or head-on attack using cost/price/value for money as the key strategic variable; (b) an indirect or flanking approach using product differentiation or promotional activities as a means for winning consumer preference and loyalty; and (c) a by-pass strategy based upon radical innovation through which the challenger seeks to change existing purchasing behaviour in favour of a new solution to basic consumer needs.

Cross-References:
[market leader] [market follower] [market niche strategy] [limited strategic alternatives]

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© Westburn Publishers Ltd 2002, The Westburn Dictionary of Marketing edited by Michael J Baker, ISBN 978-0-946433-01-8. www.themarketingdictionary.com. Entry: [Michael J. Baker], [1998].