Defensive Marketing Strategies
🔥 NEW A market Leader is a firm that occupies the largest market share in a particular industry. It usually leads that market in terms of: price changes, distribution networks, new product innovations, customer loyalty, and/or the intensity of promotional activities. Some well-known examples of market leaders are Amazon (e-commerce), Coca-Cola (beverages), Google (advertising).
In order to remain the number one player, the market leader has to find offensive strategies to expand the market and defensive ones to protect its current market share.
WHAT IS DEFENSIVE MARKETING?
Defensive Marketing is one range of strategies employed by the Market Leader to protect its current market share. The main aims of this range of strategies are to reduce the probability of attack by a competing firm, divert the attack to less-threatened areas and reduce the intensity of the attack. Like in any strategy, speed and timing is of importance for its success.
TYPES OF DEFENSIVE MARKETING STRATEGIES
- POSITION DEFENSE: Occupying the most desirable position in the customer's mind in order to make the brand almost impregnable. It can also aim to create or maintain a strategic competitive advantage for the existing brands/products that is difficult to beat by the competitors. For example, the huge number of features, applications and partners of the Android operating system helps Google stay the number in the smartphone market.
- FLANK DEFENSE: The market leader identifies its weak positions and erects outposts (by deploying resources) to defend these positions from a competitor's potential attack.
- PREEMPTIVE DEFENSE: This involves methods of attacking the competitor before it can attack the firm. This helps in getting the opponent off-balance thereby delaying a potential attack. It also involves launching multiple new products in the market, forcing the competitor to battle on multiple fronts, thus losing focus.
- COUNTEROFFENSIVE DEFENSE: It involves launching an attack on the competitor by targeting its flank or launching a pincer attack (attacking both flanks simultaneously) so that the competitor is forced to turn defensive.
- MOBILE DEFENSE: The market leader stretches itself over various markets, to undergo a market broadening and diversification, in order to tackle the underlying generic need of the market. For example, Petroleum companies may move into non-conventional energy in order to address the underlying generic need of 'Energy'. Market diversification often lands the firm into unrelated businesses.
- CONTRACTION DEFENSE: Sometimes, the market leader is unable to defend all of its territories. Through strategic withdrawal, the firm may leave weak positions in order to be able to focus on and invigorate its stronger positions.
Sources:
Kotler, P. & Keller, K. L. (2016), "Marketing Management", 2016, pp. 365, 368-370
MBA Skool Team (2018), "Defensive Strategies", 2018, MBASkool.com
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