Strategic Marketing: Planning and Control, Third Edition

(Wang) #1
3 Encirclement attack: Here we aim to offer a range of products that effect-
ively encircle the competitor. Each of these products will tend to stress
a different attribute and leave the competitor’s product facing a series
of more focused rivals. For example, in marketing soap powder, the
market leader could be encircled by three rival products each stressing
a different attribute: cleaning power, low cost and environmentally
friendly. The combined effect of the three rivals is to undermine the
positioning of the market leader.

One obvious danger of this strategy is that it leads to a proliferation of
products. These may compete with each other and are likely to drive
up cost.

4 Bypass attack: Perhaps more a policy of avoidance as opposed to attack.
The attacker moves into areas where competitors are not active. This
may involve targeting geographic areas, applying new technologies or
developing new distribution systems. For example, a tour operator
could bypass existing retail distribution outlets and sell direct to the
public through mail-order.
5 Guerrilla attack: Tactical (short term) marketing initiatives are used to
gradually weaken the opposition. Sudden price cuts, burst of promo-
tional activity or other such tactics are used to create product aware-
ness and slowly erode market share. Such attacks may be a precursor
to a longer, more sustained attack. Additionally, guerrilla attacks are
not restricted to marketing – legal action such as law suits can be used
to harass and restrict competitors. The key to success is the unpre-
dictability of such attacks and their ability to destroy morale and deplete
resources, such as management time or finance.

It is true to say that for every offensive move a defensive counter exists.
Indeed, the ‘backbone’ of any marketing strategy must be to maintain
market share. Regardless of market position, firms must continually
defend their current business against competitors. A strong defence
should deter, as well as repel, rivals and allow the organisation to build on
its strengths. Common defensive strategies are summarised by Kotler
(1999) in Figure 8.9.

1 Position defence
A position defence aims to strengthen the current position and shut out
the competition. The aim is to use the distinct competencies and assets
of the organisation to build an unassailable position in the market
place. If the defending firms can offer a differentiated, value-added
product to customers its market position will be maintain, if not
enhanced. Defending a market position is often dependent on brand
management, service levels and distribution.
2 Flank defence
Not only do organisations need to protect their main areas of operation,
but they must also protect any weak spots (flanks). Firstly, managers

164 Strategic Marketing: Planning and Control

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