Marketing Strategy

Topics: Marketing, Competitor analysis, Strategic management Pages: 6 (1873 words) Published: August 11, 2013
What is Offensive Marketing?
When more than one company offers the same kind of product, each company only receives a percentage of all sales of that kind of product. This percentage is called a “market share,” and any effort to take some of the market share away from one company and bring it to another is called an offensive marketing plan. (See also Flanking Marketing) In the above case of the motorcycle business of the mid-to-late 20th century, the Harley Davidson Company saw its market share declining while its competitors, like the Japanese company Honda and the Italian company Ducati, started to control more of the market, especially in the United States. Harley used an offensive marketing strategy to convince consumers that its competitor's motorcycles were inferior while simultaneously romanticizing the unique features of Harley's motorcycles. This proactive, image-driven campaign was designed to not only grow Harley Davidson's business, but also shrink the business of its competitors. Defensive Strategy

Defensive strategy is a reactive strategy. It is a developed to protect market share, position and profitability. It is a strategy that can be used to keep up top position in local and existing market. An example for this could be if a company highlights its USP and advantages of its products and services to prove its better than competition. This is also done by introducing new products and services in the market which is better than what competition has to offer. This strategy is predominantly useful for a market which is well established in the market but is merely looking at pushing competition away to hold top position or monopoly in some situations as the case might be. This strategy will never include attracting customer attention for the first time. It is to keep the reputation intact which has been built in the market. This methodology is most successful to keep up the customer’s confidence which no new competitor can disturb.

HOW IS DEFENSIVE STRATEGY USEFUL ?

Every action has an equal and opposite reaction

Newton’s law of motion applies perfectly well in the situation of defensive marketing strategy. Marketing in general is seen as a reaction to particular situation in most cases, and more commonly in defensive marketing. Companies are not threatened until a new product comes into competition in the market. Defensive strategy can be used to weaken competition by using techniques that will capture customer interest. This strategy comes to life only where there is existence of competition. Example: A company uses advertising techniques to highlight a specific feature of its product, by doing which the competitor’s product will seem inferior in comparison. One of the best in this category was the MAC vs. PC campaign by apple which highlighted its own features in comparisons to other PCs of DELL and IBM, which obviously put down competition and created a success factor.

Guard your Fort

Defensive strategy can be used protect the territory of a market acquired by competitions product. Companies constantly come up with new effects to hold up their position and ward of competition. By using defensive strategy it is possible to stop competition from eating into your market share. Companies often safeguard their boundaries by dropping prices or exceptionally improving product feature which competition can’t provide. Example:

A typical example of this was the price war between Wal-Mart and Amazon. Wal-Mart marked down the price of its best sellers books. Instantly amazon matched its price followed by Wal-Mart dropping prices once again and every time amazon matched the price Wal-Mart dropped it further

Sharpen your vision

This can be done keeping a constant vigil on what in your own market. This will include a thorough research on the competition capabilities and assumption on how far their efforts can get them. Keeping a constant tab on competitor’s innovations is a good...
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