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Defensive

Marketing

Strategies

Defensive Marketing Strategies

Table of

Contents

Position Defense Mobile Defense Pre-Emptive Defense Flank Position Defense Counter-Offensive Defense Contraction Defense(Strategic Withdrawal )

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Position Defense

It is a firms resort to position defense to ensure a new company’s market entry doesn’t impact or weaken their brand.

Position defense tactics also entail

acquiring patents, signing exclusive distribution agreements, erecting entry barriers, etc ..

the market leader’s aim is to create a monopoly- like scenario.

For example, reputed brands like Coke, Samsung, Toyota, etc. still promote their offerings despite

being household names, as they know the average consumer has a short memory span and who needs to be constantly reminded of the

brand’s presence.

This strategy is normally followed by brands where the defender is a market leader or enjoys a high

position in the minds of its customers and the

contender brand is a rising brand aiming to displace the defender form its position.

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Mobile Defense Strategy

Mobile defense (more than aggressively defend, stretches domain over new territories)

»

It is a kind of defense strategy chosen by a firm to prevent competition from the competitors. It requires constantly changing position and business such that it becomes difficult for competitors to compete.

»

Businesses are able to do so by introducing new

products, making modification in existing products, entering new markets, changing market segment, changing target market or changing promotional focus.

»

A petroleum industry getting involved in producing

coal, hydroelectric or nuclear industry, or companies

like Philips entering into food industry.

»

After growing curbs on cigarettes smoking, the giant ITC started focusing on consumers products and food business

Mobile Defense Strategy Mobile defense (more than aggressively defend, stretches domain over new territories) » It
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Pre-Emptive Defense (Detect potential attacks and attack the enemies first)

A company can target a particular company or multiple companies simultaneously or could target one company at a time.

The National Bank of Pakistan, (NBP) set a new world record by installing the world's highest ATM (automated teller machine) at the Pak-China border, Khunjerab Pass. It is world's highest- altitude ATM anywhere in the world

Seiko with 2,300 watch models is considered as a successful example for this category while Heinz proved failure as they did

not respond to Hunt’s attack which leaded to Hunt established a

rival brand.

Pre-Emptive Defense (Detect potential attacks and attack the enemies first) A company can target a particular

Flank Position Defense

Flank Defense is one of the tactics of Marketing where a market leader not only satisfies in Position defense but also puts up an outpost to defend the weak front or to act as a counter invasion base ..

For example, Nokia’s budget-oriented “Asha” mobile

Miguel in the Philippines as a defense against APB’s

phones have always been a major hit with Indian consumers P&G Introducing Cheers.

Gold Eagle is a flanking brand introduced by San

Beerhausen

Intel introduced low cost Centrino processor brand to protect its premium Pentium brand

In order to appeal to consumers who desired a lower-

cost detergent, P&G (Proctor and Gamble) introduced

tide which became successful. Now both Ariel and Tide drive sales of P&G in detergent market.

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Counter-Offensive Defense

Counter-offensive defense (Respond to competitors’ head-on attack by identifying the attacker’s weakness and then launch a counter attack)

» The main strategies of counteroffensive defense include

»

i) price cuts ii) offensive promotion iii) product improvements iv) sales territory invasion.

E.g. if you operate a bakery that only produces gluten-free products and a competitor who

produces regular bread also begins producing

gluten-free products, you could hit back at it by introducing regular bread products

» E.g. Toyota launched the Lexus to respond to Mercedes attack.

• Counter-Offensive Defense Counter- offensive defense (Respond to competitors’ head- on attack by identifying the attacker’s
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Lexus Aims to Dethrone Mercedes in the Prestige

Department

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Contraction defense (strategic withdrawal: give up weak territories, concentrates strength and resources at more dependable areas).

Contraction defense

(strategic withdrawal: give up weak

territories, concentrates strength and

resources at more dependable areas).

The market leader must make its own assessment to priorities the importance of territories and should

be willing to relinquish those that are

not important to defend for those

that

E.g. India’s TATA Group sold its soaps

and detergents business units to Unilever in 1993 or Ford retired T-

birds and Probe to focus on Contour

and Taurus. E.g. Windows Phone

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