Strategic Marketing: Planning and Control, Third Edition

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