Differences Between Offensive and Defensive Marketing

Differences Between Offensive and Defensive Marketing
Offensive and defensive marketing strategies have distinct benefits, depending on the status of
your small business and how successful you are in your local market. An offensive strategy
provides a means for your new business to hit the market strong and establish a presence,
whereas a defensive strategy can help keep you at the top of your local industry. Each type of
marketing requires careful planning and resource allocation to reach the largest number of
consumers.
Reactionary Marketing Strategy

A defensive marketing strategy is largely reactive to the competition or perceived occurrences in
the market, according to the website for the Massachusetts Institute of Technology. A defensive
strategy seeks to counter product claims made by the competition or to stem the tide of a
perceived competitor advantage. For example, a company that highlights the effectiveness of its
products in the wake of competitor claims of product inferiority is using a defensive marketing
strategy. A company may also seek to introduce products into the market that are better than its
existing offerings as part of a defensive marketing strategy.
Defensive Marketing Advantages

For an established company with a wide customer base, defensive marketing is a useful strategy.
The company doesn't have to actively work to generate customer interest in its products and can
simply reinforce its product messages with consumers. A well-built reputation through quality
products makes it difficult for a new competitor to enter the market and attack the established
company's customer base. The established company simply uses its defensive marketing to
reinforce customer confidence in its products and swat the newcomer away.
Offensive Marketing Definition

An offensive marketing strategy seeks to attack the market by targeting the weaknesses of the
competition and emphasizing the company's strengths in comparison. Offensive marketing does
not seek to challenge an industry leader's strengths since that would only play to the leader's
defensive marketing capabilities. This strategy attacks the industry leader where the company is
at its most vulnerable. For example, a company using an offensive marketing strategy may seek
to target an established industry leader's shaky product safety record by emphasizing the safety
of its own products.
Offensive Marketing Techniques
The marketing attack from an offensive-minded company must be as focused as possible
according to Quick MBA's website. A focused attack hammers home the company's product
message to consumers and casts doubt on the industry leader's weakest areas. A marketing attack
that is too broad risks its message losing focus with consumers. This may also mean a company
using an attacking strategy will introduce only one product at first to clearly establish it as a
challenger to the industry leader's own product
Defensive Marketing
In many industries, one particular company stands out as the leader, having the highest sales and
the largest customer base. But whether they’re selling hamburgers, dish soap, or personal
computers, their position as market leader can always be under threat.
New businesses and products constantly arise to challenge the reigning king, offering some
alternative—better quality, lower price, some unique feature —to the product(s) currently
dominating the market. How should the established leader respond?
What is Defensive Marketing?
Defensive marketing strategies refer to the actions of a market leader to protect its market share,
profitability, product positioning, and mind share against an emerging competitor. If not
undertaken, some amount of customers will leave the established business in favor of the
competitor—who can even displace the market leader and rise to the top.
Who employees defensive marketing?
Employed by market leaders, defensive marketing strategies are implemented any time a new
threat to market share appears. The type of industry doesn’t matter. For example:
 Google is the market leader in “cloud” technology services. To stay ahead of new competitors, the company actually
attacks itself by producing new products that force their old ones into obsolescence. It thus presents a moving target
for new competitors, who end up competing primarily against the old Google products. (See also Cloud Marketing)
 Tesco was the market leader in general merchandising when Wal-Mart began to move in, threatening to attract their
customers with lower prices. Tesco responded with lowering the price on many items, while simultaneously improving
the personalization of coupons and promotions. In so doing, and despite Wal-Mart’s ongoing success, Tesco kept
hold of its customer base in many cities.
 Tesco
 Tesco plc, trading as Tesco, is a British multinational groceries and general merchandise retailer with
headquarters in Welwyn Garden City, Hertfordshire, England, United Kingdom. It is the third-largest retailer
in the world measured by gross revenues and ninth-largest retailer in the world measured by revenues. It
has shops in seven countries across Asia and Europe, and is the market leader of groceries in the UK
(where it has a market share of around 28.4%), Ireland, Hungary and Thailand.Tesco was founded in 1919
by Jack Cohen as a group of market stalls. The Tesco name first appeared in 1924, after Cohen purchased
a shipment of tea from T. E. Stockwell and combined those initials with the first two letters of his surname,
and the first Tesco shop opened in 1931 in Burnt Oak, Barnet. His business expanded rapidly, and by 1939
he had over 100 Tesco shops across the country.Originally a UK grocer, Tesco has diversified
geographically since the early 1990s, and into areas such as the retailing of books, clothing, electronics,
furniture, toys, petrol, software, financial services, telecoms, and internet services. In the 1990s Tesco
repositioned itself from being a down-market high-volume low-cost retailer, to one designed to attract a
range of social groups by offering products ranging from low-cost "Tesco Value" items (launched 1993) to its
"Tesco Finest" range. This broadening of its appeal was successful and saw the chain grow from 500 shops
in the mid-1990s to 2,500 shops fifteen years later.Tesco is listed on the London Stock Exchange and is a
constituent of the FTSE 100 Index. It had a market capitalization of approximately £18.1 billion as of 22 April
2015, the 28th-largest of any company with a primary listing on the London Stock Exchange
 Tylenol was the market leader for non-aspirin pain relievers when Datril tried to challenge them. Tylenol’s response
was so massive and effective that it actually awoke a “sleepy” market for aspirin alternatives. As a result, Tylenol is
now the market leader for all OTC pain relievers, including aspirin.
 Starbucks was not the first coffee shop or restaurant to offer free Wi-Fi, and to promote that fact to customers; but it
started doing so in order to protect its market share from other businesses that were doing just that.
 Facebook, the market leader for social media, updated their options for friends’ lists as a direct response to the
“circles” offered on Google+. This allowed users to establish different levels of involvement in their social media
contacts
In a free-market economy, industry leadership can quickly change, and even long-established
companies can be displaced. So any company with a dominant market share must constantly be on
its guard for new competition, and be quick to respond with the right strategy.
For what types of customers is defensive marketing campaign developed?

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Differences Between Offensive and Defensive Marketing

Reactionary Marketing Strategy

Defensive Marketing Advantages

Offensive Marketing Definition

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