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MarketingClassical Definition:
It is the performance of business activities aimed at
satisfying needs & wants through exchange processes.Customer orientation came after a phase of focus on
production & then on advertising.
Ever since World War , Customer has been the King.
But then why was American Motors successful when itlaunches a jeep, totally ignoring customer needs?
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Competitor Orientation
Eg Digital Equipment Corporation & IBM
Pepsi & Coke
Burger King & Mc Donalds
So marketing may be called a war where the objective isto destroy the enemy & win the battle.
By this process human needs also get satisfied, so itsalways desirable to have competition
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History Of War
Alexander the Great & Persians
English & the Russians
Germans against the English & French
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Easier to reach the top, than to stay there?
NO
Bigger the company,more the advertising
Larger the sales force,
more the reach
Eg IBM
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Then what about small companies?
Better product will win the battle?
NO
Because its difficult to change the mind of people.
Winner is always taken to have a better product.
Accept the truth & deal with it
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Throughout military history, defense has proved to bethe stronger part of military warfare.
Proof in marketing: Survey of 25 brands over a period of60 years.
Eg Coca Cola
Why not an attack?
Difficulty in launching a surprise attack
Wastage of time in bringing forces to action
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Just like the terrain is important for a military battle, it is
so for marketing also.
Mountain is the high ground.
Computer IBMCoffee Nescafe
Cola Coca Cola & Pepsi
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So what should the strategy be?
Defensive?
Offensive?
Flanking Attacks?
Guerilla Warfare?
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Defensive Warfare Principles
1. Only the market leader should consider playing
defense.
2. The best defensive strategy is the courage to attackyourself
3. Strong competitive moves should always be blocked.
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for leaders:Cant wait & see
Keep something in reserve
Certain amount of legal expense should be considered
Finally, marketing peace. (when you own the pie, youshould try to enlarge the pie rather than to increasethe size of your slice)
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Offensive Warfare Principles
1. The main consideration is the strength of the leaders
position
2. Find a weakness in the leaders strength & attack at thatpoint
3. Launch the attack on as narrow front as possible
Odds in favour of defender. So attacker should be skillful.
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Flanking Warfare Principles
1. A good flanking move should be made into an
uncontested area
2. Tactical surprise ought to be an important elementof the plan
3. The pursuit is just as crucial as the attack itself