Offensive strategy a type of corporate strategy that consists of actively trying to pursue changes within the industry. Every time a new product is launched, four to five brands firms must prepare to defend. The offensive marketing strategy any company that takes extra ordinary efforts to gain more market share against competition by directly attacking the competitors business plan. Speaking about defensive marketing sounds like a war strategy, and it is not far from the truth. The differences between offensive and defensive marketing are both philosophical and practical. Oct 18, 2010 this paper presents the use of a decision model designed to help marketing managers assess the effects of offensive and defensive marketing strategies. A model for defensive marketing strategy with examples.
Their competitive market structure analysis is limited to a partial equilibrium analysis. Either of the two marketing can increase or decrease. Three types of strategic marketing strategies are regarded as defensive strategies. Increase of ones marketing and advertising which can be a way of getting both old and new customers. Offensive and defensive competitive marketing strategy. Disadvantages of defensive strategy business does not understand its target market. A model for defensive marketing strategy with examples from. Differences between offensive and defensive marketing. Cost differential cannot exclusively explain resource allocation as widely claimed. Advantages and disadvantages of defensive and offensive. Defensive and offensive strategies for market success.
Jan 18, 1999 master the four strategies of marketing warfare and be willing to commit your marketing arsenal to any one of them on a moments notice. Offensive defensive strategies free download as powerpoint presentation. A type of corporate strategy that consists of actively trying to pursue changes within the industry. The war of offensive and defensive warfare in addition to. The offensive launch of a new brand has been well studied.
It aims at enhancing the value of ones products or service. Jan 25, 2020 defensive marketing strategy began to be used in the late 1990s, and has been considered as a better alternative to offensive marketing, based on the traditional saying that precaution is better than cure. Considers the impact of defensive marketing on a firms competitive ability in the marketplace. We dont get to recruit specific types of players so the coach has to adapt to the players they get. Offensive and defensive strategies swidenvolleyballportfolio. In contrast, defensive strategies are used to discourage or turn back an offensive strategy on the part of the competitor. Offensive and defensive marketing in spatial competition. Doc defensive and offensive strategies for market success. Art of war and its implications on marketing strategies. Some authors suggest that the unique marketing strategy should be used for successful bank positioning in. There are two types of defensive marketing strategies. Introduction competition forces companies to constantly engage in offensive and defensive marketing strategies. International journal of business and social science vol.
When this rivalry exist, each company must protect its brand, growth expectations, and profitability to maintain a. This paper presents the use of a decision model designed to help marketing managers assess the effects of offensive and defensive marketing strategies. That is, the objective of defensive marketing strategy is to minimize customer turnover or, equivalently, to maximize customer retention by protecting products and markets from competitive inroads. A theoretical analysis, journal of marketing research, 24 4. Pdf art of war and its implications on marketing strategies. Its use in simple repositioning strategies and in revolutionary product innovations is discussed.
The defensive and offensive strategies in the military l iterature ha ve been adopted by the marketing literature as strategies that can b e utilized by leader or challenger firms. Leverage on regions at different phases of economic cycles offensive strategies 4. Defensive investment strategies are designed to deliver protection first and modest growth second. The second empirical model to assess the impacts of marketing strategies on profitability is developed by an exploratory study. Best 2004 contends that offensive marketing strategies are more typically growthoriented and. Defence strategies marketing dictionary the means used by companies in market leadership positions to defend their market share from attacks by challengers. Depending on the peculiar situations faced by the firm, one can broadly think of three most commonly used marketing strategies namely, offensive, defensive and niche strategies. Preentry strategies are actions taken by incumbents before they are attacked by challengers. Offensive or confrontation strategy is a stand that speaks of aggression or confrontation. The theoretical model of the paper is based on the buyer behaviour model by kotler and armstrong 1999. A major finding of the study is that the mental models and perceptions of graduate business students when they react to entry of competitors are not universal but differ depending on student gender, nationality, and level of studies. Defensive strategies for market success nauman rafique l1f09mbbf0018wednesday, april 18, 2012 2. Failure for the business to understand its market sometimes.
Defensive marketing strategies can be categorized by their aimsthat is, whether a strategy is designed to retain customers or merely to slow the rate of their switching to a new rival. Maintain advertising with customerfocus selling pitch 5. When rivalry exists, each company must protect its brand, growth expectations, and profitability to maintain a competitive advantage and adequate reputation among other brands. Closedloop duopoly strategies, marketing letters, 4 4, 285 295. Scribd is the worlds largest social reading and publishing site. Highlights we study the optimal mix between offensive and defensive marketing in a duopoly. Defensive strategy is defined as a marketing tool that helps companies to retain valuable customers that can be taken away by competitors. Organizations pursue defensive strategies when the circumstances require some sort of adjustments in the structure or functioning of the organization. Master the four strategies of marketing warfare and be willing to commit your marketing arsenal to any one of them on a moments notice.
Interpreting offensive and defensive marketing strategies. Defensive strategies are divided into preentry and postentry stretegies. Companies pursuing offensive strategies directly target competitors from which they want to capture market share. Combining both offensive and defensive marketing allows firms to compete optimally. Each company has a market share and any company that takes extra ordinary efforts to gain more market share against competition by directly attacking the competitors business plan, and. Pdf offensive and defensive competitive marketing strategy. Very little theoretical or empirical research has been done on defensive marketing, with the exception of work on brand loyalty wind 1982. Companies that are managed as offensive competitive generally. Rivalry occurs because one or more competitors either.
Standard firstsecondthird defender strategies apply ly see defensive tactics, below o checking back across into the center. In contrast, defensive strategies are used to discourage or turn back an. Offensive and defensive marketing strategies have distinct benefits, depending on the status of your small business and how successful you are in your local. Sadly, the process of crafting and executing a business plan, especially in. Offensive and defensive strategies for industry leadership. Since satan does not take rest, we should be involved in both wars if we want to be true soldiers in the army of jesus christ. With an offensive or aggressive investment strategy, by contrast, an investor tries to take. The firms positions and marketing effectiveness also affect resource allocation. Competitors can be defined as other firms that are located in the same market category or sell similar products to the same segment of people. Defensive marketing strategy is based is an analytic model of how consumers respond to marketing strategies. Offensive and defensive strategies for industry leadership an industry leader is the one who dominates the market in terms of products, sales, and holds a good reputation in the market and smoothly executes its activities in longrun. Defensive its often said that the best defense is a good. For instance, both approach and offensive strategies seem to have in common an element of actively initiating advances to make. Based on cultural differences in regulatory focus theory higgins, 1997, i predicted that chinese would emphasize defense and defensive strategies more than canadians, whereas canadians would emphasize offense and offensive strategies more than chinese.
Offensive marketing takes the initiative and drives your business forward in primary and new market segments. Closedloop duopoly strategies a modified lanchester game is used to develop closedloop strategies for offensive and defensive marketing expenditures of duopolistic competitors in a market share rivalry. From the first model relating marketing strategies to retention and market share, we find a negative relations between offensive marketing and retention as well as between defensive marketing and market share. In industries in which there is strategic interaction among competing firms, companies are continuously involved in defensive and offensive strategies. In this paper we discuss several defensive and offensive strategies that managers can you for market success. Offensive and defensive strategies i believe that all of our coaches need to have a very open mind to what their team will look like each year and cannot be set on one scheme to play by. Offensive strategies competition strategic management. Defensive and offensive strategies linkedin slideshare. Offensive strategy is focused on achieving competitive advantage. Defensive strategies are only used by market leaders in strategic management. Defensive and offensive strategies for market success request pdf.
Defines defensive marketing in the context of its counterpart, offensive marketing. Defensive marketing strategy by customer complaint management. A mental models approach article pdf available in european journal of marketing 4478. We, first, discuss the preentry and postentry defensive marketing strategies, and, then, a number of offensive marketing strategies.
Pdf defensive strategy framework in global markets. For instance, both approach and offensive strategies seem to have in common an element of actively initiating advances to make good things happen, whereas avoidance and defensive strategies seem to have in common the act of passively staying away to prevent bad. Defensive strategies in strategic management your business. Master four strategies of marketing warfare jacksonville. Offensive marketing can be a complex endeavor because a business not only has to effectively communicate the appeal of its own product, but must also understand the strengths and weaknesses of a competitors product. In the spiritual fight there are the same types of warfare and both require from us personal initiative and active participation.
They each have their place in the world of small business and can be used separately or together to meet your goals. It is a developed to protect market share, position and profitability. If not undertaken, some amount of customers will leave the established business in favor of the competitorwho can even displace the market leader and rise to. Sep 26, 2016 offensive and defensive strategies for industry leadership an industry leader is the one who dominates the market in terms of products, sales, and holds a good reputation in the market and smoothly executes its activities in longrun. Competitive strategies can be divided into the offensive and the defensive. Defensive strategy is focused on attackingresponding the competitor in order to. Offensive and defensive competitive marketing strategy journal ui. Firms engage in offensive and defensive actions in an effort to expand or maintain their market position yannopoulos 2011. The offensive marketing strategy is employed when more than one company in a market offers the same kind of product. Offensive strategies ideally, supply chain strategies, and particularly procurement strategies should parallel those in the marketing arena to ensure consistency of effort and response to market demands. Perceived importance of defensive marketing strategies. Mar 27, 2014 the defensive marketing strategy is composed of your zone defense, mantoman defense, and hustle plays.
Information about the openaccess article offensive and defensive competitive marketing strategy. Our approach is similar in spirit to hauser and shu gans, but we examine an interplay of both offensive and defensive marketing in such a way that market share and profit can not only be maintained, but also increased. To better understand the optimizing behavior of the firms, the dynamic models of offensive and defensive marketing are analyzed. If your smallbusiness has reached a marketleading position, you may need to use such strategies. The zone defense reflects how we are going to work to keep our clients satisfied at the. Defensive strategies in strategic management business. The offensive and defensive types of warfare literature.
Dec 19, 2015 advantages of defensive strategy increasing your marketing and advertising. Examines telecommunications as an important means through which many companies are creating several competitive advantages for themselves through a defensive marketing strategy. So, you need an offensive plan and a defensive plan. The objective of this study is to investigate the relations between offensive and defensive marketing strategies and two types of business performance. Defensive marketing strategies refer to the actions of a market leader to protect its market share, profitability, product positioning, and mind share against an emerging competitor. The goal of these strategies is to hold onto your position as the market leader, fighting off. Apr 29, 2016 organizations pursue defensive strategies when the circumstances require some sort of adjustments in the structure or functioning of the organization. It is a strategy that can be used to keep up top position in local and existing marke. Hence effective marketing strategies are important. Defensive strategies in strategic management business study. Defensive marketing strategy began to be used in the late 1990s, and has been considered as a better alternative to offensive marketing, based on the traditional saying that precaution is better than cure speaking about defensive marketing sounds like a war strategy, and it is not far from the truth.
Competition forces companies to constantly engage in offensive and defensive marketing strategies. Google scholar crossref fornell, claes, wernerfelt, birger 1987, defensive marketing strategy by customer complaint management. Analysis of the model reveals that welldefined closedloop strategies can be developed that show directly the influence of market share on offensive. This model is based on the perceptual maps and value maps that were introduced in the opening lecture. If not undertaken, some amount of customers will leave the established business in favor of the competitorwho can even displace the market leader and rise to the top. Defensive marketing strategy by customer complaint. Advantages of defensive strategy increasing your marketing and advertising. Defensive marketing strategies may also take the form of postentry actions that are initiated after the challenger has entered the market see table 1. Marketing managers should attempt to discourage would be. Primary purpose is to make possible attacks unattractive or discourage competitors. Analysis of the model reveals that the last result would appear to have particularly important implications for both practice and research.