Defensive Marketing Strategies




Competitive Position
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Devendra Vyavaharkar
Manager, India

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


  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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.
  6. 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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1
Molokanova
Professor, Ukraine
 

Defensive Marketing Strategies

The market leader must practice either offensive strategies to expand the market or defensive strate... Sign up

 
1
Jaap de Jonge
Editor, Netherlands
 

Combining Offensive with Defensive Marketing Strategies

@Molokanova: Look at a simple analogy like boxing or in fact any other sport from tennis to chess. I... Sign up

 
0
Chanjan
Consultant, Peru
 

A Non-Strategy is also a Defensive Strategy

Dont forget the non-strategy of "not taking any action". or example, if a brand is already a market ... Sign up

 
-1
Molokanova
Professor, Ukraine
 

Combining Offensive with Defensive Marketing Strategies

@Jaap de Jonge: I still think that any unique strategy is tied to the main goal of holding on to a p... Sign up

 
1
Helen Strong
Business Consultant, South Africa
 

Anticipative Realignment

Another form of 'defense' can occur when an organisation invests in market research and innovation -... Sign up

 
1
Jaap de Jonge
Editor, Netherlands
 

Market Research and Innovation: Attack is the Best Form of Defence

@Helen Strong: Thanks for that suggestion. I believe it is what is meant with #5: Mobile Strategy? T... Sign up

 
1
ARAM NGOMBE
Zambia
 

Defensive Marketing Strategies

@Jaap de Jonge: Thanks a lot for the contributions and the topic at large. All in all, these strate... Sign up

   

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