MAR ARKETING KETING WAR ARFAR ARE E By Al Ries & Jack Trout Book Review by Ajay K. Merchant
The Strategic square Defensive marketing warfare is for market leaders and involves courage to attack yourself and block strong competitive moves. Offensive marketing warfare is for no. 2 companies which involves finding a weakness in the leaders strength & attack at that point. The attack should be on as narrow a front as possible. Flanking marketing warfare is for smaller companies into an uncontested area. Tactical surprise is an important element. Guerrilla marketing warfare is for local or regional companies in a market segment small enough to defend. Important not to act as a leader and able to bug out at a moments notice.
Introduction War belongs to the province of business completion, which is also a conflict of human interest and activities …… Karl von Clausewitz Marketing philosophy need to change from the classic definition which talks about satisfying consumer needs and wants. In fact in the 1920 ’s the business was production oriented. Today, business must become COMPETITOR ORIENTED. More & More successful marketing campaigns will have to be planned like military campaigns.
Understanding Marketing warfare The true nature of marketing today involves the conflicts between corporations, not the satisfying of human needs and wants. Marketing is the strategy and tactics a company uses to win the battle of the marketplace. A study of warfare is not just a study of how to win. Equally as important is how not to loose.
Chapter 1: 2500 years of war If marketing is war, then one should study the history of war itself and apply the military concepts to marketing. Military Marketing ARBELA 331 BC : Alexander the Great leading The ability to shift your forces rapidly is from the front was able to change tactics almost often the key to marketing victory. instantly. CRECY 1346 : Big Technological developments Minor technological advantages mistaken are revolutionary eg. A longbow used which for “longbow” and taking on entrenched fired 6 times faster then a crossbow competitor lead to dismal results. NAPOLEAN BONAPARTE , brilliant strategist Marketing people should also do a chose battles and arrayed his forces based on detailed study of the competition as the assessment of enemy positions. first step in developing an effective marketing strategy.
Chapter 1: 2500 years of war - 2 Military Marketing WATERLOO 1815 : Napolean’s front attack Clausewitz’s said that a well-established on British Centre as his last farthing and had defensive position is extremely strong & to abandon the crown and battlefield. very difficult to overcome. Eg. American Motors for years attacked leaders was sold to Chrysler including the iconic Jeep brand. Dumping your losers & focusing on winning brands is almost always a good strategy . The Somme 1916 : The introduction of the Television and 40 years later the internet machine gun changed the nature of warfare. changed the nature of the marketing game. Conventional infantry attacks became almost impossible.
Chapter 2: The principle of force In marketing, the saying “it’s easier to get to the top rather then to stay there,” is a myth. In fact it is easier to stay on the top then to get there. A big company always triumphs over a small company. However smaller companies need to think like field commanders and not forget the principle of force. Fallacy of “ better people” - The difference between winners and losers is seldom people. It is always strategy & therefore a better strategy attracts better people. Fallacy of “better product” . Misconceptions cannot easily be changed by an advertising or sales effort. The Truth is the perception that is inside the prospects mind and better for a company to accept that and then proceed rather then try to change it.
Chapter 3: The superiority of the defence The defensive form of war is in itself stronger then the offense … ..Karl von Clausewitz Throughout military history, defence has proved to be the stronger form of warfare. Eg. In the Korean War America won the South in defence and lost the North in offence. England lost the colonies in offence but won Waterloo on defence. However one needs to be offensive in the marketing battle to become the leading brand in a product category. This is the paradox in the fruit of victory. The glamour of offensive war leads marketing manager to charge against competitors with disastrous results. Defence is stronger then offensive as it is difficult to launch a surprise attack. Also communication of message to millions takes time.
Chapter 4: The new era of competition Historically military language has only been used in marketing but not the strategic thinking behind the language. Marketing promises should be as vague as political ones. Otherwise, they will erode the effectiveness of your forces. In the new era of marketing competition is getting brutal and the name of the game is to take business away from somebody else. Aggressiveness alone is not the mark of a good military strategy. More products, more people, more advertisement etc not good and military history teaches the reverse. It teaches single minded commitment to win the battle. Winning is about Thinking smarter, not longer.
Chapter 5: The nature of the battleground In military battle the terrain is very important and it is the geographical location. In marketing it is fought on a battleground 6 inches wide, the mind of the prospect. A terrain tricky & difficult to understand. You don’t win with a better product. You win with a better perception. Mapping the prospects mind not with the idea to ask what customers want but finding out what positions are held by what companies. In military, mountains (high grounds) are usually considered strong positions. Similarly when a customer uses a brand name in place of a generic, the mountain in their mind is strong.
Chapter 6: The strategic square There is no one way to fight a marketing war, rather there are 4 ways. The key is to know which warfare to fight. The type of fight is dependent on your position in the strategic square. This can be illustrated with the eg. Of the US Automobile industry, considering the big four – viz. General Motors, Ford, Chrysler and American Motors. (Only US brands) Company Mkt. share Strategy Reason General Motor 59% Defensive Main competitor Justice department who would break the company if they wiped off a competitor. Ford 26% Offensive Launch offensive attacks on the weak points of General Motors. Chrysler 13% Flanking Lee Iacocca did that by launching the first of many new categories of cars. American Motors 2% Guerrilla Brand Jeep provided ideal opportunity to launch Guerrilla tactics
Chapter 7: Principles of defensive warfare There are 3 basic principles of defensive marketing warfare. Defensive principle - 1 Defensive principle - 2 Defensive principle - 3 Only the market leader The best defensive strategy Strong competitive moves should consider playing is to attack yourself. should always be blocked. defence. a. Companies don’t create a. The defender owns a strong a. As the war takes place in leaders but customers do. point in the mind of the prospects mind, the attacker prospect. will take time to make an impression. b. A good marketing leader must b. Gillette has followed this b. Eg. Chrysler surpassed in have a clear picture of the actual strategy relentlessly by attacking technical innovation but the situation. itself. credit went to GM. c. Fool the enemy, never fool c. It is better to take business c. Behaviourally people pay yourself. from yourself then someone else more attention to opinion of do it. others rather then their own. d. A company that hesitates to d. Better to overcover then attack itself ultimately looses undercover. Gillette did not market share. wait for BIC to succeed in the disposable razor market.
Chapter 7: Principles of defensive warfare – 2 In case major brands of the company is under a price attack 1. the leader should be emotionally ready to strike back. A live-and-let-live philosophy has no place in warfare. 2. Maintain something in reserve and spend only as much as 3. necessary to “keep the competition in line” . In countries like USA which have strong anti-trust 4. regulations better to exercise power to defend vertically then moving horizontally to extend your power. The goal of defensive strategy is marketing peace. 5. Try to enlarge the pie rather then increasing the size of 6. your slice.
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