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

market follower strategy

Definition:
One of four basic competitive marketing strategies identified by Philip Kotler (Marketing Management, 4th edn, 1980) others being MARKET CHALLENGER, MARKET LEADER and MARKET NICHE. Market followers tend to constitute the majority of firms in a market albeit that their collective share may only account for 20-30 per cent of total sales. While no market follower is likely to challenge the leader or its immediate competitors this is not to say that they do not indulge in very active competition between themselves. Denied the ECONOMIES OF SCALE which accrue to the larger firms the followers have to be particularly efficient in their marketing and service policies if they are to survive and many of them choose to develop a concentrated or market niche strategy.

Cross-References:
[market niche strategy] [market leader] [economies of scale] [market challenger strategy]

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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].