Marketing Warfare Test Questions – Flashcards
Unlock all answers in this set
Unlock answersquestion
**This slide is important
answer
What are the four types of Marketing Warfare?
question
The main goal of this strategy is to protect the company's market share, profitability, product positioning, or mind share. The battleground of the war takes place inside the mind of potential and existing customers.
answer
Principles of Defensive Warfare
question
"Only the market leader should consider playing defense." this should be used by the leaders in which they compete against themselves by introducing new products.
answer
Defensive Principle #1
question
"The best defensive strategy is the courage to attack yourself." Introducing products better than your existing ones preempts similar moves by the competition. "Attack yourself" by introducing new products or services to make your old ones out of date. Even if the new product has less profit margin, but it will achieve a long-term goal of protecting the company's market share.
answer
Defensive Principle #2
question
"Strong competitive moves should always be blocked." You should watch what others are doing as to block any attempted encirclements.
answer
Defensive Principle #3
question
Always be prepared to strike back Keep something in reserve And of course have "Marketing Peace" "When you own the pie, you should try to enlarge the pie rather than try to increase the size of your slice"
answer
What do companies always have to do?
question
Where absolute superiority is not attainable, you must produce a relative one at the decisive point by making skillful use of what you have. Karl von Clausewitz Should be used by the market challenger Frontal attacks are not so great ex. simply cola by redbull--they should have marketed it differently.
answer
Principles of offensive warfare
question
The main consideration is the strength of the leader's position.
answer
Offensive Principle #1
question
Find a weakness in the leader's strength and attack at that point.
answer
Offensive Principle #2
question
Launch the attack on as narrow a front as possible.
answer
Offensive Principle #3
question
It's not every day that David goes out and slays Goliath. Offensive warfare is not an easy task.
answer
The odds favor the defender
question
There is weakness in strength, if you can find it. Achilles had a weak heel, which led to his downfall. As a company increases its share of the market beyond a certain point, it becomes weaker. These 60-80% market share brands look exceedingly strong; yet they are sometimes vulnerable...if you can find the weakness inherent in their strength.
answer
the weakness is strength
question
FedEx tried to be best at 1 day, 2 day, 3 day delivery - failed - but when focused only on 1 day delivery a decade later Federal Express became a profitable competitor in the package express business
answer
the benefits of being narrow minded
question
Monopolies look especially strong. But even a company with almost 100% market share can be successfully attacked- if you can find a weakness inherent in their strength.
answer
Attacking a monopoly
question
Flanking marketing warfare strategies are a type of marketing warfare strategy designed to minimize confrontational losses. Flanking attack (offensive) Flanking position (defensive) ex. hildegard-- she didnt attack the wurstel stands, she came up with a "new" concept.
answer
Flanking
question
A good flanking move must be made into an uncontested area There must be some elements of newness or exclusivity; the prospect must put you in a new category One must search for particular segment or niche where to launch flanking attack It is of great importance to be the first to occupy the segment Flanking skill require exceptional foresight and vision, because there is no established market for the new product or service
answer
Flanking principle #1
question
A good flanking move should have an elements of surprise The greater is surprised, the longer it will take the leader to react and try to cover Test marketing should minimized to maintain the elements of surprise.
answer
Flanking Principle #2
question
Low price High price - customers tend to use price as a measure of quality. Small size Large size The whole point is just to find some aspect with which you can be unique and then stick to that. There have been cases in which straying from the flanking technique after having been established caused them to lose market share.
answer
Flanking with price
question
Distribution - the product itself may not be substantially different but new distribution channels may be used.
answer
Flanking with place
question
Product form: find a new form of a conventional product so that you can be unique
answer
Flanking with product
question
Flanking is not a low-risk strategy. Market acceptance of an innovative product is unknown, and test marketing must be kept to a minimum to guard the element of surprise. Whether the leader will take prompt action in response is an unknown.
answer
Flanking with promotion
question
Find a segment small enough to defend (geographically or volume) Reasons: Existing markets are too small Competitive advantage at least initially Use this technique if you are small
answer
Guerrilla Warfare Ground Rule #1
question
No matter how successful you become do not act as a leader Guerrillas should be all line - no staff members Take advantage of small size, as you can make decisions fast
answer
Guerrilla Warfare Ground Rule #2
question
Be prepared to move at a moment's notice Do not hesitate to abandon position or a product
answer
Guerrilla Warfare Ground Rule #3
question
Because you never attack the enemy's main force, you preserve your resources. It is very flexible and can be adapted to any situation, offensive or defensive. It is very difficult to counter with conventional methods.
answer
What are the strengths of guerrilla warfare?
question
Geographic Guerrillas (e.g. Local Newspapers) Demographic Guerrillas (e.g. specialized magazines) Industry Guerrillas (e.g. IT firms) High-end Guerrillas
answer
Types of Guerrillas
question
introducion of a range of products that are similar to the target product. Each product will take some market share from the target competitor's product, leaving it weakened. If it is done stealthfully, a full scale confrontation can be avoided. The encirclement can also be based on market niches rather than products. The attacker expands the market niches that surround and encroach on the target competitor's market.
answer
Encirclement Strategy
question
the market is loosely segmented some segments are relatively free of well endowed competitors the attacker has strong product development resources
answer
The envelopment strategy is suitable when..
question
It involves either developing new technologies, or creating new business models. This is a revolutionary strategy that rewrites the rules of the game. Startups often have elements of this strategy -bitcoin to replace banks... Paradigm shift ! Conventional companies usually cannot react fast enough Africa- they skipped the landlines and just went straight to mobile phones
answer
Leapfrog strategy
