Focusing on Competitors as well as Customers
Whilst conventional marketing theory states that businesses should be customer-focused, the concept of Marketing Warfare argues that businesses should be competitor-focused. Since the marketplace is dynamic, the actions and reactions of competitors must be taken into account, as well as the needs of customers, when devising a business strategy. Marketing Warfare uses military metaphors to understand the dynamics of business competition.
In the book Marketing Warfare, Al Ries and Jack Trout argue that there are four possible strategies for
fighting a marketing war:
Defensive Strategy. Suitable for market leaders defending a dominant position.
Offensive Strategy. Appropriate to businesses able to challenge the market leader's postion.
Flanking Strategy. Not a direct attack on the market leader, but a new product or service in an area not dominated by
the market leader.
Guerilla Strategy. Ideal for small companies which do not have the resources to attack the leader, but are nimble enough to
respond quickly to select and win a small, defendable market share in a niche market.
A practical technique for analysing competitors' strengths and weaknesses, in order to devise a winning competitive strategy, is Charting the Competition.
Remember that competitors are not only a business's immediate rivals; competition may come from new
entrants, substitute products, etc. See Porter's Five Forces Model of Competition
for more details.
See Marketing Consultancy and Workshops for details of how I can work with you to devise winning competitive strategies.
Note: This web page is not intended to provide comprehensive coverage of the subject, merely a brief introduction to provoke thought and to lead to a more in depth understanding and application of the topic, either through further reading - or from me as your management consultant, executive trainer or personal coach in a consultancy project, training course, workshop or seminar.
References and Further Reading
Ries, A and Trout, J. Marketing Warfare. McGraw-Hill. 1997
Sun Tzu. The Art of War