Marketing Warfare Strategies

Offensive marketing warfare strategies - are used to secure competitive advantages; market

leaders, runner-ups or struggling competitors are usually attacked- Micromax, Moov, DoCoMo

Defensive marketing warfare strategies - are used to defend competitive advantages; lessen risk

of being attacked, decrease effects of attacks, strengthen position

Flanking marketing warfare strategies - Operate in areas of little importance to the competitor.

Guerrilla marketing warfare strategies - Attack, retreat, hide, then do it again, and again, until

the competitor moves on to other markets. Bean Bags

Deterrence Strategies - Deterrence is a battle won in the minds of the enemy. You convince the

competitor that it would be prudent to keep out of your markets.

Pre-emptive strike - Attack before you are attacked. (see Defensive marketing warfare

strategies for a description)

Frontal Attack - A direct head-on confrontation. (see Offensive marketing warfare strategies for

a description)

Flanking Attack - Attack the competitor’s flank. (see Flanking marketing warfare strategies for a

description)

Sequential Strategies - A strategy that consists of a series of sub-strategies that must all be

successfully carried out in the right order.

Alliance Strategies - The use of alliances and partnerships to build strength and stabilize

situations.

Position Defense - The erection of fortifications. (see Defensive marketing warfare strategies for

a description)

Mobile defense - Constantly changing positions. (see Defensive marketing warfare strategies for

a description)

Encirclement strategy - Envelop the opponents position. (see Offensive marketing warfare

strategies for a description)

Cumulative strategies - A collection of seemingly random operations that, when complete,

obtain your objective.

Counter-offensive - When you are under attack, launch a counter-offensive at the attacker’s

weak point. (see Defensive marketing warfare strategies for a description)

Strategic withdrawal - Retreat and regroup so you can live to fight another day. (see Defensive

marketing warfare strategies for a description)

Flank positioning - Strengthen your flank. (see Defensive marketing warfare strategies for a

description)

Leapfrog strategy - Avoid confrontation by bypassing enemy or competitive forces.

(see Offensive marketing warfare strategies for a description)

THE MARKETING WARFARE STRATEGIES ARE AS FOLLOWS:- Principle of Principles Illustrations DEFENSIVE WARFARE (Market Leader)

Block strong competitive moves Strengthen position by NPL, reach, brand building, grow the market

OFFENSIVE WARFARE (# 2 or 3 with resources to sustain challenge to the leader)

Find weakness in the leader’s strength and attack that point, narrower the better

Make skilled used of what you have Moov, Maruti, Hero Honda

FLANKING WARFARE (# 4-6 with resources to pursue your flanking move in that market segment)

Good flanking move into an uncontested area, but close to a leader’s position, tactical surprise important, pursuit as critical as the attack Leader may also flank to stave off low price competition

In flanking, ability to create and maintain a separate category is important as there is no established market for the new product or service. Toyota- Lexus, Intel-Celeron, Rolex-Tudor, HUL- Wheel

GUERILLA WARFARE (Small players with low/no resources)

Hit and run strategy

Find a small segment of the market that can be defended, agility of essence Bean bags,

Marketing Warfare strategies Firms use a combination of defensive & offensive strategies to protect/ grow own or attack competitor business. It is a mix of leadership, motivation, intelligence gathering, strategies, logistics, and communications (Defensive, Offensive, Flanking, Guerilla)

Defensive marketing warfare strategy used to defend competitive advantages; generally used by

protect competitive advantages Nokia with full range, NPLPre-emptive strike - Attack before you are attacked

Nokia in lowest range

Position Defense - Erect Nokia range at sensitive price

leader, major players to reduce risk/effects of attack, and strengthen position

fortifications points Mobile defense - Constantly change positions

Nokia psychographic segmentation

Counter-offensive - When attacked, launch counter-offensive at attacker’s weak point

Nokia set up Indian manufacturing unit to tap economies of scale and compete with all players

Strategic withdrawal - Retreat and regroup to live & fight another day

Smart phones unsuccessful, competing in other segments

Flank positioning - Strengthen your flank

Nokia E series in smart phones, N series in entertainment phones, 1100 for economy phones

Deterrence strategy- convince competitors to keep out of your markets. Win the battle in the minds of the enemy.

Reliance in plastics

Offensive marketing warfare strategy- used to secure competitive advantage, generally used by challengers to target leader and significant players

Attack competitive advantages Pepsodent v ColgateFrontal Attack – Confront direct head-on

Pepsi v Coke, Surf/ Rin v Ariel

Encirclement- Envelop opponents position

Micromax, Google

Leapfrog strategy - Avoid confrontation, bypassing enemy or competitive forces

HTC, Blackberry

Flanking marketing warfare

strategy

Operate in areas of little importance

to competitor, by leader to take on

low price players or trade up, or by

challenger to take on leader.

Introduce new brand in same / similar segment to compete with competitor, to protect main brand and attack competitor’s flank

Intel Celeron, Kingfisher Red

Guerilla marketing warfare strategy

Use limited resources to attack, then retreat, hide, attack, never face to face and with unusual campaigns)

Bean bags,

http://www.wordiq.com/definition/Marketing_strategies

Market Scope Strategy

How By RequirementsSingle market strategy

Concentrate efforts in a single segment

a) Serve the market wholeheartedly despite initial difficulties (b) Avoid competition with established

Titan in watches, Nokia in

firms.Multi-Market strategy

Serve several distinct markets

(a) Carefully select segments to serve (b) Avoid confrontation with companies serving entire market

LG, Samsung

Total Market strategy

Serve entire market spectrum by selling differentiated products to different segments in the market

(a) Employ marketing mix in different segments (b) Top management commitment to embrace entire market (c) Strong financial position

UB Group in Beer & Spirits,

Market Entry strategy

Strategy How Requirements

First In Enter market before others (a) Willingness and ability to take risks (b) Technological competence (c) Strive to stay ahead (d) Heavy promotion (e) Create primary demand (f) Carefully evaluate strengths.

Motorola, 1st in mobiles

Early Entry Enter market in quick succession after the leader

(a) Superior marketing strategy (b) Ample resources (c) Strong commitment to challenge leader

Nokia

Laggard Entry

Enter market during end of growth / maturity phase2 entry modes (a) Imitator - Enter market with me-too product (b) Initiator - Enter market with unconventional marketing strategies

Imitator –(a) Market research ability (b) Production capability

Initiator – (a) Market research ability(b) Ability to generate creative marketing strategies

Samsung phones

Tata DoCoMo

Product Strategy

Strategy Requirements

Product Positioning

Place brand in that part of the market where it will have a favorable reception compared with competing brands.

(a) Single brand Maintain unique position by creating the aura of a distinctive product.

(b) Multiple brandsCarefully position multiple brands so that they do not compete with/ cannibalize each other

Product Repositioning

Reviewing current product positioning and marketing mix and seeking a new more appropriate position

(a) If strategy is directed toward existing customers, repositioning is sought through promotion of more varied uses of the product

(b) If SBU wants to reach new users, this strategy requires the product be presented with a different twist to the people who have not been favorably inclined toward it.

In doing so, care should be taken to see that, in the process of enticing new customers, current ones are not alienated

(c) If this strategy aims at presenting new uses of the product, it requires searching for latent uses of the product, if any.

Although all products may not have latent uses, there are products that may be used for purposes not originally intended.

Section 3 : Product Strategy

Product Positioning Strategy

Placing a brand in that part of the market where it will have a favorable reception compared with competing brands.

Requirements: (a) Successful management of a single brand requires positioning the brand in the market so that it can stand competition from the toughest rival and maintaining its unique position by creating the aura of a distinctive product.

(b) Successful management of multiple brands requires careful positioning in the market so that multiple brands do not compete with nor cannibalize each other.

Product Repositioning Strategy

Reviewing the current positioning of the product and its marketing mix and seeking a new position for it that seems more appropriate.

Requirements: (a) If this strategy is directed toward existing customers, repositioning is sought through promotion of more varied uses of the product

(b) If the business unit wants to reach new users, this strategy requires that the product be presented with a different twist to the people who have not been favorably inclined toward it.

In doing so, care should be taken to see that, in the process of enticing new customers, current ones are not alienated

(c) If this strategy aims at presenting new uses of the product, it requires searching for latent uses of the product, if any.

Although all products may not have latent uses, there are products that may be used for purposes not originally intended.

Product Scope Strategy

The product-scope strategy deals with the perspectives of the product mix of a company.

The company may adopt a single-product strategy, a multiple-product strategy, or a system-of-products strategy.

Requirements: (a) Single product: company must stay up-to-date on the product and even become the technology leader to avoid obsolescence (b) Multiple products: products must complement one another in a portfolio of products

(c) System of products: company must have a close understanding of customer needs and uses of the products.

Product Design Strategy

The product-design strategy deals with the degree of standardization of a product.

The company has a choice among the following strategic options: standard product, customized product, and standard product with modifications.

Objectives: (a) Standard product : to increase economies of scale of the company (b) Customized product : to compete against mass producers of standardized products through product-design flexibility (c) Standard product with modifications : to combine the benefits of the two previous strategies.

New Product Strategy

A set of operations that introduces (a) within the business, a product new to its previous line of products (b) on the market, a product that provides a new type of satisfaction.

Three alternatives emerge from the above: product improvement/modification, product imitation, and product innovation.

Requirements: A new-product strategy is difficult to implement if a new product development system does not exist within a company.

Five components of this system should be assessed:

corporate aspirations toward new products

organizational openness to creativity

environmental favor toward creativity

screening method for new ideas, and evaluation process.

Section 4 : Promotion Strategy

Section 5 : Distribution Strategy

Section 6 : Pricing Strategy