Transcript MARKETING MANAGEMENT

Marketing Warfare
Defensive Warfare
Offensive Warfare
Is what market leaders wage
Is strategy for No.2 or No.3 in a
category
Flanking Warfare
Guerilla Warfare
Smaller or new players that
are trying to get a foothold
in a category by avoiding
the main battle.
Is often the land of smaller
companies
MARKETING WARFARE
 SIMPLY THINK OF COMPETITORS AS THE
ENEMY . ATTACK OR FLANK OR KEEP
INNOVATING DEPENDING ON YOUR
POSITION IN THE STRATEGIC SQUARE.
NEVER HESITATE TO DESTROY
COMPETITION OR ELSE
U WILL BE A PART OF HISTORY.
Marketing Warfare
Principles of Defensive Marketing Warfare
 Only the market leader should consider playing
defensive.
 The best defensive strategy is the courage to attack
yourself
 Strong competitive moves should always be blocked.
e.g : Gillette : The best a man can get.
 Owned wet shaving market with Blue and Super Blue
Blade.
 Launched Trac II (nonadjustable ) and ATRA
(adjustable double bladed razor)
Marketing Warfare
 Launched Good News (inexpensive disposable razor to
counter BIC (French company which launched disposable
razor)
 Mach 3:- 3 bladed razors
Market share of over 60% in USA/Europe.
Other examples: INTEL (286,386,486,PENTIUM etc.)
J&J : :- Tylenol :- reduced price from $2.85 for 100 to $1.85
to beat Bristol – Myer’s Datril.
Marketing Warfare
Principles of Offensive Marketing Warfare:
 The main consideration is the strength of the leader’s
position.
 Find a weakness in the leader’s strength and attack at that
point.
 Launch the attack on as narrow a front as possible.
e.g. : AVIS :-- “Rent from AVIS . The line at our counter is
shorter”:- AVIS attacked Hertz:-- weakness inherent in
Hertz’s position as the largest Rent-A-Car company.
XEROX: Out-innovated the leader 3M (by developing a
better copying process-dry instead of wet copying)
Marketing Warfare
 Fed Express used principle 3 by saying “ When it
absolutely , positively has to be there overnight” (small
packages less then 70 pounds)= challenged the leader
EMERY.
 Wall Street Journal was the leader (2 Mn daily) for
financial and business information. The name positions it
as a financial paper , so the business side can be attacked
== “Business Times” , The daily business newspaper.
Marketing Warfare
Principles of Flanking.



1)
2)
3)
A good Flanking move must be made into an
uncontested area.
Tactical surprise ought to be an important element of
plan.
The pursuit is as critical as the attack itself.
Michael Dell flanked the computer industry and Direct
Marketed:- $ 500 Mn company in 5 years.
Miller Lite flanked the beer industry with Lite beer.
DEC flanked IBM (Minicomputers)
Marketing Warfare
 Mercedes-Benz flanked GM (Cadillac cars ) at the high end.
 Volkswagen's Beetle flanked GM’s big cars.
 Avon flanked cosmetic companies who used traditional
distribution methods by resorting to direct door-to-door selling.
To launch a true flanking attack you must be the first to occupy the
segment.
Otherwise it’s just an offensive attack against a defended position.
Flanking skill requires exceptional foresight because there is no
established market for the new product or service.
Indian examples: Nirma, Close-up.
Marketing Warfare
Principles of Guerilla Marketing Warfare.
 Find a segment of the market small enough to defend.
 No matter how successful you become , never act like a
leader.
 Be prepared to bug out at a moment’s notice.
e.g.: Rolls-Royce : High priced Guerilla : nobody competes
because
1) existing market is small
2) The company initially has an enormous advantage.
Indian examples: 1) Arun Ice-cream : T.N
2) Natural’s Ice-cream : Mumbai