OFFENSIVE & DEFENSIVE STRATEGIES

Offensive Defensive Strategies - considering strategic options from a competitor rather than customer orientation is referred to as competitive marketing strategy. Kotler and Singh identified five offensive and six defensive strategies these are named after military strategies. Offensive warfare 1. Frontal attack This is the direct, head on attack meeting competitors with the same product line, price, promotion, etc. Because attack is on the enemys strengths rather than weakness it is considered the most risky and least advised strategy. 2. Flanking attack The aim here is to engage competitors in those products markets where they are weak or have no presence at all. Its overreaching goal is to build a position from which to launch, an attack on the battlefield later. 3. Encirclement attack Multi pronged attack aimed at diluting the defenders ability to retaliate in strength. The attacker stands ready to block the competitor no matter which way he turns the product market. Product proliferation supplying different types of the same product to the market. Market encirclement consists of expanding the products into all segments and distribution channels. 4. Bypass attack This is the most indirect form of competitive strategy as it avoids confrontation by moving into new and as yet uncontested fields. Three type of bypass are possible; develop new products, diversify into unrelated products or diversify into new geographical markets. 5. Guerilla warfare Less ambitious in scope, this involves making small attacks in different locations whilst remaining mobile. Such attacks take several forms. The aim is to destabilize the competitor by small attacks. Defensive warfare 1. Position defence static defence of a current position, retaining current product markets by consolidating resources within existing areas. Exclusive reliance on a position defence effectively means that a business is a sitting target for competition. 2. Mobile defence A high degree of mobility prevents the attackers chances of localizing the defence and accumulating its forces for a decisive battle. A business should seek market development, product development and diversification to create a stronger base. 3. Pre-emptive defence Attack is the best form of defence. Pre-emptive defence is launched in a segment where an attack is anticipated instead of moving into related or new segments. 4. Flank position defence This is used to occupy a position of potential future importance in order to deny that position to an opponent. Leaders need to develop and hold secondary markets to prevent competitors from using them as a spring board into the primary market. 5. Counter offensive defence This is attacking where the company is being attacked. This requires immediate response to any competitor entering a segment or initiating new moves. 6. Strategic withdrawal. It might be the right decision to cease producing a product and/ or to pull out of a market completely. This is a hard decision for managers to take if they have invested or if the decision involves redundancies.

Exit barriers make this difficult.a. Cost barriers include redundancy costs, the difficulty of selling assets. b. Managers might fail to grasp the principles of opportunity costing c. Political barriers includes government attitudes d. Marketing considerations may delay withdrawal e. Psychology managers hate to admit failure Reasons for exita. The companys business may be buying firms turning them around and selling them at a profit. b. Resource limitations mean that less profitable businesses have to be abandoned. A business might be sold to a competitor or occasionally to management. c. A company may be forced to close because of insolvency. d. Change of competitive strategy. e. Decline in attractiveness of the market. f. Funds can earn more elsewhere.

The Consumer Adoption Process

How many times have you turned on the TV and saw customers camped outside a store awaiting the arrival of the latest version of a software application or video game? It is unlikely that you would find any 80-year-old great-grandmothers in the bunch. The reason you won't is due to a concept called the Consumer Adoption Process. People differ greatly in their willingness to buy new products or try new concepts. On one extreme, some people are just waiting for the latest computer hardware to hit the store shelves, while on the other extreme; some people are still using the typewriter and couldnt care less. Let's take an example: If the consumers in market is 35-54 years of age, have 2.5 kids and drive an SUV; they are most likely in the Early Majority stage. The more you understand about this group, the more adept you will be in anticipating their needs and developing advertising accordingly. Listed below are the stages of the consumer adoption process.

Innovators: This group is young and educated. They tend to take risks and are hard for marketers
to locate.

Early Adopters: This is a young and mobile group. They are similar to innovators but not quite as
hard to find since they now have a history. They are likely to recommend products to others if they like it.

Early Majority: This group is a bit more cautious. Their ability to take risks is limited because of
family and career obligations.

Late Majority: This group is older than the early majority. This group is good target for referrals and
personal endorsements.

Laggards: This group is older and less knowledgeable than the others are. They dont respond to
most marketing messages and look to other laggards for guidance. They shouldnt be discounted, but marketers wont look to introduce a new innovative product to this group. Certain demographic groups are overrepresented in the consumption certain goods and services. Similarly, other groups are underpresented in the consumption of different goods and services. If you get them twisted, the failure of your advertising is almost guaranteed. By the same token, if you get it right, you can print your own money. In a nutshell, the more you understand the Consumer Adoption concept, the more effective your advertising will be.

6 strategies to be a Market Leader

It is the dream of an entrepreneur to see his company among the spotlight as an example for others to follow. Capturing substantial market share does not happen

overnight but requires determination, commitment and diligence in the long run.
Below are the six viable and effective strategies to lead the market.

Brand Power
In order to lead the market one of the factors that needs to be addressed properly is the brand power. Building a reputation for the brand is an integral part of the efforts injected in order tolead the market. Once a brand goes viral it is the existing customers who recommend the product to new customers and act as a marketing agent. Brand power could sometimes even make the better quality and reasonable price being offered by other competitors overlooked. One of the most effective way to capture new customers attention is through creating a brand reputation. For instance as the brand power speaks for itself so when a new customer thinks for purchasing a specific product it is a possibility that he might have already heard about the powerful brand name so automatically he will be attracted towards the product offered by the powerful brand.

Competitive Strategy
A market leader initiates a new trend. Being the market leader innovation and

reaction is very important. The Business Development Department of a successful

organization is proactive and keeps on adopting new strategies to deal with the

emerging competitors.
As a market leader the company should try and figure out the weaker points of its competitors and then work upon those weak aspects to retain its top spot within the market. Instead of reducing price after a price reduction by one of the competitors a company should have its own clear strategy to reduce prices when more customers are willing to purchase a product. The sales processes should be monitored and updated at regular intervals to avoid competitors getting an edge. The after sales service and help desk should be

working on high standards to ensure customer satisfaction.

High Quality with Advanced Technology

To be market leader a company should try and deploy the latest technology in its business processes and try its level best to design its product according to the

latest market, consumer and economic trends.

The latest technology should be integrated within the product so that it is compatible to work on the latest standards. Quality should never be sacrificed. The foremost priority of a company should be to offer the best quality for its product to stand out other products of same nature available in the market. Consumers are more lured towards the reliable and durable product. Latest technology saves costs so when technology and quality are fused together they result in a high quality profitable product.

Business Models
A company should try and update its Business Model with the latest market trends. All the obsolete policy and procedures should be eliminated and a think tank should be

created that reviews and formulates new plans and procedures. It is easier for
a company having 10 business plans at the back end to survive the economic recession and fluctuating economic trends. The Business Models reflect a companys determination towards achieving success. The Business Models are industry specific but achieving ISO certifications (International Standards organization) adds up to the value of the product.

Recruiting the valuable resources

It is easier for a company to achieve success while having expert team and valuable

resources. The skills of the employees matter a lot. Motivation of the employees is the
key factor for the road towards success. Working together as a team towards achieving one objective adds up to the chances of becoming a market leader.

Innovation
Last but not the least innovation plays an important role in the success of a

business entity. Actually innovation is learning process the end product of which is an idea which is effectively implemented in the organizational product to achieve long term benefits.
A company working upon new ideas and executing and implementing them properly achieves more long lasting success. Innovations creates upcoming opportunities

for a company to grab. As more business is equal to more revenue and possibility
that the company can grow to become a market leader in its industry. The above article highlights the most basic and precise overview of how a company can become a market leader in its specific industry. Leading the market is not a hard nut to

crack but retaining the market leadership is indeed a challenge and only champions are able to sustain their large market share volume through continuous hard work. H