Get this from a library! Marketing warfare. [Al Ries; Jack Trout] -- "How American corporations are using military strategies to outmaneuver, outflank, and even. Business Week "Chock-a-block with examples of successful and failed marketing campaigns, makes for a very interesting and relevant read. Twenty years ago, Marketing Warfare propelled the industry into a new, modern sensibility and a world of unprecedented profit. Now, world-renowned marketing .
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The book that changed marketing forever is now updated for the new millennium In , Marketing Warfare propelled the industry into a new, modern. etgabentisttus.cf Download PDF Marketing Warfare, PDF Download Marketing Warfare, Download Marketing. You've got your hands on one of the greatest marketing manuals ever writtenthe classic that defines the strategies, plans, and campaigns of.
Marketing Warfare BusinessNews Publishing. The must-read summary of Al Ries and Jack Trout's book: The authors explain how leaders can adopt military strategies to use in their operations in order to gain a considerable competitive advantage.
By following their advice, you can use this approach to defend your business territory and conquer any competitors that threaten your position. Added-value of this summary: For immediate download. Check your local Dymocks store for stock. Enter your postcode: Please enter a valid postcode.
Marketing Warfare [ebook] by Al Ries (epub/mobi)
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BusinessNews Publishing. Adrian Raftery. Stephen Barkoczy. Send us an email. Locate a store. FedEx made this mistake in its early years by offering a wide array of transit times such as overnight, 2-day, and 3-day delivery. FedEx became successful only when it began to focus on the next-day delivery market and won that position in the mind of the consumer using the slogan, when it absolutely, positively has to be there overnight.
A narrow attack is particularly effective when the leader has attempted to be all things to all people with a single product.
In that situation, a challenger can identify a segment within the leader's market and offer a product that serves only that segment. The challenger then stands a chance of winning a position in the consumer's mind for that more narrow class of product. Principles of Flanking Warfare A flanking attack is not a direct attack on the leader, but rather, an attack in an area where the leader has not established a strong position.
Ries and Trout present the following three flanking principles: A flanking move is best made in an uncontested area. The product should be in a new category that does not compete directly with the leader and should be the first to target the segment.
A flanking move should have an element of surprise. Surprise is important to prevent the leader from using its enormous resources to counter the move before it gains momentum.
Test marketing should be minimized to maintain the element of surprise. In the earlier example of Datril vs. Follow-through pursuit is equally as important as the attack itself. The firm should follow-through and focus on solidifying its position once it is established before competitors launch competing products.
Too often, management turns its attention to the products that are not performing well rather than strengthening the position of the winners. If the firm does not have the resources to strengthen its newly won position, then perhaps it should have used a guerrilla strategy instead of a flanking one. A flanking move does not require a totally new product. Instead, the product only needs to be different enough to carve its own position.
Ries and Trout offer the following examples of product variations on which to base flanking moves: Low price - for example, Budget Rent a Car successfully flanked Hertz and Avis. Others such as Dollar and Thrifty followed, but Budget was ahead of the game and was able to solidify its position. High price - customers tend to use price as a measure of quality.
Orville Redenbacher's Gourmet Popping Corn and Haagen-Daz super-premium ice cream are examples of products that successfully positioned themselves in the high-price category. The higher profit margins allow the firm to follow through and solidify its position.
Small size - Sony with portable electronics and Volkswagen wth automobiles successfully won the position of small size. Volkswagen lost its position as it attempted to broaden its line to all sizes of cars.
Large size - for example, the Prince oversized tennis racquet. Distribution - the product itself may not be substantially different but new distribution channels may be used. For example, Timex distributed its watches in drugstores and Hanes distributed L'eggs pantyhose in supermarkets using innovative packaging and displays.
Product form - for example, Close-Up was the first gel toothpaste and Softsoap was the first liquid soap. 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.
Being well-tuned to the trade is helpful since in their public speeches executives often provide clues about their stances on potential products. For some products such as automobiles, the development time is several years and thus the flanking product has the potential to establish its position before incumbants can respond. Principles of Guerrilla Warfare Guerrilla marketing differs from a flanking campaign in that the guerrilla move is relatively small and differs significantly from the leader's position.
Guerrilla marketing is appropriate for companies that, relative to the competition, are too small to launch offensive or flanking moves. Ries and Trout list the following three principles of guerrilla marketing warfare: Identify a segment that is small enough to defend. For example, the scope can be limited geographically, demographically, by industry, or by price.
Never act like the leader, even if successful in the guerrilla attack. Some companies that make a guerrilla move are successful in it and begin to act like the leader, building a larger, bureaucratic organization that slows it down and increases overhead costs.
A guerrilla should resist the temptation to give up its lean and nimble organization. Be ready to enter or exit on short notice. If the market for the product takes a negative turn, the guerrilla should exit quickly rather than waste resources. Because the guerrilla has a nimble organization, it is better able to make a quick exit without suffering huge losses.
Similarly, the guerrilla can respond more quickly to a market opportunity without spending months or years having committees analyze it. Guerrilla opportunities sometimes arise when a large company discontinues a product, leaving a gap on which the guerrilla firm can capitalize if it acts quickly.
The idea of guerrilla marketing is to direct resources into a limited area, using the principle of force to win that area. Examples of geographic guerrillas include local retailers who win customers with offerings better tailored to the locale compared to the offerings of national chains.
Locally-tailored city business publications are an example that fill a need that cannot be filled by a national publication such as the Wall Street Journal. Banks and airlines also have used a limited geographic scope successfully.
Demographic guerrillas target a specific demographic segment of the populuation. Industry guerrillas target a specific industry, using vertical marketing to tailor a product to the special needs of that industry.
The focus is narrow and deep rather than broad and shallow. Product guerrillas offer a unique product for which there is a small market. The Jeep is an example of such a product. High-end guerrillas offer a premium high-priced product.
Rolls-Royce is a guerrilla in very high-priced automobiles. Because the volume is small and Rolls-Royce already has the lead, other manufacturers are deterred from competing directly.
The high price creates a mystique about the product and raises the curiosity of consumers who seek to find out what makes the product so special that it commands such a high price.
Line extensions of the main product do not work well here; high-end products should have a new name in order to establish a new position that is not diluted by the position of other products. Alliances often are instrumental in a guerrilla strategy.
In certain industries such as hotels, creating a brand that independents can join has been a successful strategy for many. A critical question when forming alliances is who the competitor is.
Ries and Trout use the example of two motels across the street from one another on a resort island. On the surface it might appear that they are each other's competitors. Another way to view the situation is that they are allies attempting to attract tourists to their island rather than another resort island.
An alliance might be more beneficial to the two motels than direct competition with one another. For most companies, guerrilla marketing is the appropriate strategy simply because in most industries only a small percentage of firms are large enough to pursue defensive, offensive, or flanking strategies. The "cola war" between Coke and Pepsi has been fought for decades. The size and shape was just right to fit the hand, and this bottle and its association with Coca-Cola was a major strength.
However, when Pepsi introduced a larger bottle for the same price as the smaller bottle of Coke, Coke did not have many options to respond. Because of the way the size and shape of the bottle fit the hand, it could not be enlarged easily. Furthermore, the dispensing machines for Coke were designed for nickels only, so the price could not easily be changed.
These weaknesses were a direct result of Coke's strength and illustrate the second principle of offensive warefare: the challenger should seek a weakness in the leader's strength. Many of the successes and failures of the Coke vs. Pepsi cola wars can be explained by principles of marketing warfare, including the success and failures of smaller challengers such as 7-Up the Uncola and Royal Crown Cola. Ries and Trout also use the "beer war" to illustrate marketing warfare principles.
Schlitz was the top brand, but lost its lead to Budweiser in a close battle. Then Heineken entered the market as an import with a successful flanking attack, maintaining its import lead by following through with strong advertising budgets.
In the 's many brewers introduced light beers as line extensions. Ries and Trout believe that the line extensions are unwise because the extensions inadvertantly flank a firm's own leading brand. Miller Lite was successful, but Miller High Life suffered as it lost its position in the mind of the consumer as the working man's beer.
In the fast food industry, Ries and Trout use the "burger war" to illustrate a flanking attack. McDonald's was the leader, and Burger King tried offensive maneuvers. The moves that were unsuccessful were those that extended the product line and that copied McDonald's. The campaigns that were successful differentiated Burger King from McDonald's. For example, Have it your way attacked a weakness in McDonald's consistent production line process that had the flip side of being inflexible.
Even more successful were the advertisements emphasizing the fact that Burger King's burgers were flame-broiled while McDonald's were fried. Wendy's successfully flanked McDonald's by targeting adults rather than children, offering adult-size portions and launching the highly successful Where's the beef? Finally, White Castle was the low-end guerrilla who limited their geographic scope, did not add a confusing array of other products, and maintained a high level of sales in each establishment.
White Castle observed the guerrilla principle of never acting like the leader, and as a result was able to coexist peacefully. Ries and Trout further reinforce their marketing warfare principles with the "computer war".
Marketing Warfare (Summary)
In the 's Digital Equipment Corporation launched a successful flanking attack by introducing the PDP-8 minicomputer, winning the position of small computers. According to Ries and Trout, IBM should have blocked this move by introducing their own minicomputer, but they failed to do so until 11 years later.
IBM unsuccessfully attempted to attack Apple in the home computer market with the PCjr, illustrating that a company's position is more important than its size. Strategy and Tactics Strategy can be developed using a top-down or a bottom-up approach. Ries and Trout argue for the bottom-up approach because a deep knowledge of the tactics actually used on the battlefield is needed to formulate a strategy that has the goal of achieving tactical objectives.
More specifically, Ries and Trout argue that the sole purpose of strategy is to put the forces in motion to overpower the competitor at the point of contact using the principle of force.
On the military battlefield, this means having more soldiers or force at the point of battle. On the marketing battlefield, it means overpowering the competitor in a specific position in the mind of the customer.
Ries and Trout explain that a good strategy does not depend on brilliant tactics. Mediocre tactics usually are sufficient for a good strategy. Even the best possible tactics are unlikely to compensate for a poor strategy. In marketing, advertising can be considered tactics and many managers falsely assume that success depends almost entirely on the quality of the advertising campaign. If a strategy requires top-notch tactics to win the battle, Ries and Trout maintain that such a strategy is unsound because tactical brilliance is rare.
Any strategy should take into account the probable response of the competitor. The best way to protect against a response is to attack the weakness in the leader's strength so that the leader cannot respond without giving up its strength. To support the argument of a bottom-up strategy, Ries and Trout point out that many large companies incorrectly believe that they can do anything if they simply allocate enough resources.
History shows otherwise when one considers failed attempts such as Exxon's entry into office systems and Mobil's acquisition of Montgomery Ward.
Such diversions shift resources away from the point of battle where they are needed. This is one of the dangers that can be avoided by a bottom-up strategy based on what can be accomplished on the tactical level. The Marketing General Ries and Trout believe in having relatively few people involved in the strategic process.
The organization needs a strong marketing "general" to formulate the strategy from the tactical realities.
A marketing general has the following characteristics: Flexibility - to adjust the strategy to the situation. Courage - to make a decision and stand by it.
Boldness - to act without hesitation when the time is right. Knowing the facts - in order to formulate strategy from the ground up. Knowing the rules - but internalizing them so they can be forgotten. Lucky - marketing warfare has an element of chance; a good strategy only makes the odds more favorable.
Summary Ries and Trout have identified interesting and useful commonalities between military strategy and marketing strategy. As in military warfare, the appropriate marketing warfare strategy depends on the firm's position relative to its opponents. In developing its strategy, the firm must objectively determine its position in the market.
Ries and Trout argue that it is strategy and not hard work that determines success. A critical question when forming alliances is who the competitor is.
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However, in some cases, no firms may be strong enough to challenge the leader with an offensive strategy. Sometimes not all items in your order are available for shipment at the same time, and items may be delivered separately.
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