Identify the defensive marketing strategy of a companySoluti

Identify the defensive marketing strategy of a company.

Solution

The defensive marketing strategies are meant to prevent the future growth, profitability and positioning of the product in the on-going rivalry market conditions. These strategies can be applied to any new entrants who is trying to give competition to the existing top market leaders or in case any type of threatening from the rival. These strategies are dependent on the type of the product on market segment. FMCG sector is the best example for frequent changes and needs whereas electronic market with less frequent changes where defensive marketing strategies survive for long. Once the potential new entrant is found in the market who is willing to compete then the various measures are considered by deciding on the level of the competition required, existing patents, new technologies, new regulations, to come up with the required defensive marketing strategies. Hence, any organization while designing defensive marketing strategies, should focus on existing customer base, essential competencies, product mix, branding, pricing assets required to preserve market share.

The pre-entry defensive marketing strategies are continuous improvement, expansion of the capacity, signaling, defend & fortify and covering all bases. These are advantageous when the action is taken to influence the potential new entrant by making the entry more challenging. The Post-entry strategies are used more for threatening purpose such as defending the market positioning of the entrant before it gets established, engaging in cross-parry and introducing fighting brand. Hence, defensive marketing strategies works well when performing market research with less expenditures.