Definition and Uses of Defensive Marketing Strategy
Effective marketing strategies can help companies stay innovative, protect against competitors, and build a strong value base for growth. Defensive marketing strategy is one strategy that market leaders can use to protect their image or reputation, customers and profits. Learning about defensive marketing strategies can help you apply these strategies to your company and maintain a high level of success.
What is Defensive Marketing Strategy?
Defensive marketing strategy refers to marketing actions taken to protect market share, profitability, product positioning, and mind share against emerging competitors. If you don't implement this strategy, there will be a possibility that a number of customers will leave your business and switch to competitors. These competitors can then also rise to the top and lead market share.
It is important for your business to maintain their good position in the market. It is necessary to stay alert to competitor activity so that your business can adjust processes and focus on certain areas if necessary. Defensive marketing strategy allows a company to protect existing customers, expand market reach, and defeat competitors to protect the business.
Types of Defensive Marketing Strategy
There are four types of Defensive Marketing Strategy which are divided into two categories, namely based on goals and how to achieve the goals.
Based on Goals
Through the following strategies, your company should determine and communicate the advantages of your business compared to competitors. In an effort to retain customers or reduce the number of customer losses, your company can try to increase advantages that can be felt by customers.
- Positive strategy is a strategy designed to retain customers.
- Inertial strategy is a strategy designed to slow the rate of customer loss.
Based on How to Achieve Goals
The following strategies can be used by your company to build and communicate your company's strategic points which can then be compared with business competitors.
- Parity strategy is a strategy that focuses on the perceived advantages or strengths of competitors.
- Retarding strategy is a strategy that focuses on the strength of the brand or company brand.
Before choosing a strategy to implement, you need to assess the advantages and strengths that your company has, such as brand identity, products and services that support the company's identity, and the way your company communicates to customers. Then examine the value of customers to your business and how vulnerable they are to being taken by competitors.
Tips for Using Defensive Marketing Strategy
If your company feels it is necessary to use this strategy, here are some tips to help your company maximize the success of using this strategy:
Identify Weaknesses
One effective way to use a defensive marketing strategy is to determine the weaknesses of your own company or business before competitors find them. Consider conducting a thorough evaluation of your company's processes, history, and values so you can address the issues at hand. So your company can develop better defenses and more thoughtful responses in an effort to prepare for possible opportunities before an attack occurs.
Find Opportunities to Innovate
Another aspect that is no less important is keeping your company innovative. This can protect your business from competitors and maintain your business' position at the top of the market. Innovation is not just about cutting-edge products or services for the market.
Your business or company can innovate by improving existing products or services. Consistently improving offerings can help companies maintain customer satisfaction and not be influenced by new technology that may emerge from competitors.
Innovation is important, but staying true to your company's core values and identity is more fundamental. A little variety can help your business stay relevant in the market. However, be careful not to change too many of your business' core values as this could result in the loss of existing customers.
Focus on Growth
Defensive marketing helps your business to stay relevant and innovative. Don't be quickly satisfied with the results or current position. Instead, always look for ways to grow your business and expand your customer reach. Look for opportunities to incorporate new strategies, initiatives and methods into your business.
Stay Aware of Competitors
Defensive marketing focuses on protecting your business products and services from competitors. In an effort to do this, it is important to monitor competitors' movements closely. Be prepared to respond to all forms of efforts made by competitors with the aim of retaining existing customers.
Inform Customers About Your Business Advantages
Customer outreach efforts can be important in this strategy. Having a positive reputation in the market can help to retain existing customers, build brand loyalty, and attract the attention of new customers.
That is the definition and use of a defensive marketing strategy that can be applied to maintain and even increase the success of your company. In practice, it is important to remain aware of the strengths and weaknesses of your own company, so that your company will be better prepared and able to predict challenges or attacks from competitors that may arise in the future.
