Pre Entry Defensive Strategy Marketing Essay

Any firm, whether it be a start-up or a company which is yrs. old needs marketing plan for itself. This provides long term sustainability to it. The marketing programs can have various reasons or motives behind the strategies that they use like increase in the sales, upsurge in the brand visibility, awareness etc. With regards to different kinds of firms, the approach to the marketing changes. Here we will take up the situations of start-ups and founded firms individually and start to see the difference.


It is a well-established simple fact that over fifty percent of the newly founded/ start-up firms tend to fail in the beginning with their kick off. The success rate is significantly less than 50%. Therefore these companies need special target strategies to help them sail through the competitive surroundings. Among the reasons of the inability is also the fierce competition. A whole lot of businesses are constantly stepping into the markets due to low accessibility barriers and making the industry more and more fragmented.

The best technique for a start-up is likely to be one which is really low-cost taking a look at the business model of the small company. Start-up marketing has been a unique challenge because of the limited resources.

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Even before thinking of the marketing strategies, the start-ups should understand the market composition, the macro-level factors, the end-level consumers, products movements and various distribution programs and certainly the rivals.

Have one influencer

One key judgment leader or a choice maker can be called and his advice and the skills can be shared. This can be further accompanied by a phone interview or an article for the newsletter for the much needed earned media. This may be totally free of cost.

Creating relevant content online

The new business can be publicised online by producing the related content online. This is done through Facebook pages, LinkedIn profiles or websites etc. Through this the business enterprise should be positioned as a source of brand knowledge. This does not require yet another budget but does require skills of content technology and ingenuity. It has become very important to have an online presence even if the business has got nothing in connection with the online selling. This is described by the do some searching online buy offline (SOBO) behaviour of the consumers. More awareness can be made by dealing with an SEO writing and tactical implementation of any company. It capitalises on blogging. , pr announcements, ad lead generation. This effort along with generating brand recognition and improves the business's rank on the search engines. E-news is also another good option that can position a small company as an expert and helps in romance building. By targeting marketing / bloggers etc. a sizable databases can be created which gives the clients possible to subscribe.

The online section can be leveraged in a great deal of other ways. There are lots of online communities etc. that gives paid membership and help advertise in a customised manner. When the company gets into its business name, the ads go to all or any the potential customers. The success of a site is mainly measured by the amount of traffic that is seen on a website. The ppc model of internet search engine advertising can even be used.

Sharing brief company's video on sites like YouTube etc. can also help create a propensity for the brand. The videos will include the company's culture, values, mission, goals, income and success testimonies.

Blogs is also one area that can be highly used. By figuring out the various related blogs that suit the company account and also looking at the sort of sites that are rather famous between the potential customer, they should be regularly up to date. Some influencers and judgment market leaders can be called to write on the business's blog to include more reliability and buzz on the website. To create and share some valuable content through websites, blogs etc. is mainly called content marketing and has proved to be successful for the start-up companies.

The online forum - whether it is a Facebook webpage or a blog can be effectively utilized by narrating tales about the success of the business. This can be a big customer deal or a problem solved or an effective advertising campaign etc.

The company should also have an considerable online map-listing as this is the vital thing consumers will devote the search engines when looking for a particular company.

Using Trade Magazines

More awareness can be created by posting an article or the company knowledge in the trade periodicals (if it's a B2B company) or local periodicals (B2C Company). Also various attempts like small programs, contests etc. at trade shows assists with getting people discussing your company somewhat than that of the competitor's. Getting involved with a trade connection is also a good way to increase the visibility and connections with the customers.

Google Adwords and Keywords

The new start-up must have relevant names of domain and Google Adwords that help increase the brand presence online. This also helps us in targeting specific consumers.

Customer Commitment Programs

This helps in building long-term connections with the consumers. For example an email address list or a phone number database.

The company can demonstrate its specialization in one particular site by teaching seminars through the chamber of commerce. It solves the purpose of both advertising and marketing.

Other unconventional methods

The marriage with the buyer can even be strengthened by providing personalised gifts to all or any the customers. This will not only help us get the client database but it will help us to obtain the clients with suprisingly low customer acquisition costs.

Another way can be by organising business awards or giving the company's name for such a competition.

Since a start-up is a beginning by individuals/smaller groupings they have a larger potential for increasing their span by marketing with networks - friends of friends and on. This can help in knowledge and learning resource sharing. The sociable presence can even be increased by participating in professional luncheons, conferences, fund-raising events, signing up for committees or by becoming a member of a non-profit company to provide a CSR angle to the recently born business.

Also another method can be tie-ups with the multimedia channels- can be a television channel, radio etc. and have a discussion as an enterprise advisor while handling other people's doubts in real time (thorough phone calls). This adds a whole lot of positive publicity since the company's name is everywhere there. Certain educational occurrences addressing various topics of marketing can be conducted to soar over the new company's name. The identical can be expanded on to the online medium by giving people an usage of a large source/guide/reports through the web site in exchange of tourists' names, numbers and addresses.

Since the start-ups are in their nascent level without many resources, they can ask more capable people for help; build interactions with them which can eventually lead to asking for a referral. These companies can also sign up for hands with other set up firms in a fund raising effort or act as an arm under these big companies. These start-ups can offer pilot tasks to other organizations to provide them a demo of the kind of work and also to build trust.

To know the true value of the company, after some time of the launch floating a review amongst the existing customers (online, face-to-face, and telephonic) can also give a good evaluation of the conception of the business in the minds of its consumers and clients. This is a feasible approach as the client (in case there is B2B) and the client (in case there is B2C) database would have been definitely monitored. The results can be leveraged by adding it in the press publications and press releases.

Responding to the authors of various articles available newspapers and giving them reviews about their articles can also help in building a long-term romance with the editors to give you the necessary PR whenever needed.

Since the major marketing concern with a start-up is to mainly set up a brand presence recognition and relevance, this can be done by various sampling methods, couponing, doing contests etc. The marketing activities have to be certainly with regards to the type of products for sale and the mark audience. E. g. if the T. G is 17-25 age group people then the best marketing activity can be tie-ups with academic institutions and schools and sponsoring situations like fests. Getting endorsements from a specialist also help a corporation go quite a distance.

The company should remember that whatever it can, it will never outsource its main competency. The three basic goals for a start-up is to preserve its employees and existing customers and at exactly the same time getting clients as well. If recruiting is extremely hard with the limited costs, the best way is to look for an intern.

The company at its first level should slowly but surely expand its basic by focussing on the local market and customising itself in line with the local customers.

Collaborations with courier services like Given Ex and Blue Dart can help us to attain out to all our customers by causing these businesses deliver the fliers, business credit cards, catalogues etc.

The company must have an extremely relevant name to itself to attain a larger brand recall and a catchy logo design as well. The name of the business is always considered to be a tiny aspect and not much thought about but it's the name that bears off the legacy for the years. The brand custom logo with specific colours can help us create related activations around them. Brand ritual is also something that may be integrated to increase consumer proposal. As well as the name and custom logo the company should also have a slogan and a design for it to be identifiable to the prospective market.

Established firms

Once the business is established on the market, it has other issues to cope with when compared with the start-ups. Because the brand consciousness and presence with a significant market share is already set up for these companies, the issue is to develop a marketing plan that will be for a sustainable growth for a company. Plans that will assist the business stay for a longer period of your time. Also at this time, unlike the start-ups, retaining the existing customers is a lot more important than getting new ones.

At this stage many strategies like offensive, protective, global, post-entry strategies need to be applied. Many other models also enter into play when we talk of set up models. They are PEST analysis, Porter's five forces etc. that assist in design the marketing approaches for long term taking into account the macro factors for the concerned firm.

The Porter's five forces model may be used to evaluate the industry/company.

It involves the following variables

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And the marketing strategies should be designed according to the above said parameters

Rivalry among Existing Competition: The strategies designed should be designed keeping in what the competitor's movements are. The counteraction is definitely not be the same what the competitor company did but somewhere close to that so the current position of the firm remains on the market. This is comprehended by the example that Pepsi and Coke have launched virtually identical mango variants called Cut and Maaza.

Bargaining Vitality of Suppliers and Potential buyers: This generally is predominant in big firms where resource and distribution is very important. If we take retail companies for example then your relationships they build with the wholesalers can lead to an upper side of the suppliers and hence marketing strategies like certain trade strategies, sampling/marketing promotions etc. helps.

Threat of Substitutes: This is mainly the risk of other substitute products that individuals might used in the absence of our product. They are definitely not the competitor's similar products but products of other category altogether that may eat in to the firm's market show. Example - because of various coffee variations people are preventing to have the cold-drinks. In such cases the marketing strategies should be focussed on building consumer proposal to get back the lost customers and to build dedicated customers those who prefer sticking to our firm's products than somebody else's.

Threat of New Entrants: When the industry is very attractive and is growing, the other rival firms will certainly enter in. The only technique to be used here is the consolidation of the industry to improve the entry barriers for other businesses. The exemplory case of the famous organization - De Beers can be studied. Here, this firm has considered control of 70% of the coal mines. This plan has made it very difficult for any other player to enter the industry.

Also the web/online actions mentioned above in this file (start-up firms portion), equally pertains to the established companies as well. Online occurrence is crucial today for any organization. Here unlike the tiny firms the key goal would be consumer engagement and building and excitement around the existing brand rather than broadening the customer/customer base. This can again be achieved by firmly taking help of the many digital organizations that keep checking the firm's performance based on various parameters.

For established organizations, tracking a company's performance on the frequent basis and then modifying the marketing strategies in line with the changes is necessary.

The start-up organizations lie in the first three stages in the graph shown below. They may be in their advantages and growth level while the proven firms are now in the maturity level. And this is the major reason that the marketing strategies for both types of businesses have to be different from one another. For the established firms the efforts should be put such that the organization doesn't fall season in the decrease stage.

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The established businesses marketing strategies should be mainly focussed on brand building. These firms are certainly making massive amount money and hence it is can be quite effectively used for a few CSR effort. This helps in creating a positive image in the eyes of the consumers looked after humanises the brand because of its stakeholders. As an example we can take the cause advertising campaign of the brand Vodafone-its partnership with the National Autistic World (NAS). It created various activations and certainly did increase people's awareness about the NAS. Following the completion of this campaign, it was assessed and it was discovered that now more than 50% of the stakeholders found Vodafone as a socially in charge company. This also received an award for Quality from business in the community. Including socially responsible business practices is now a seen as a sustainable marketing arrange for big, established organizations.

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Global marketing strategy

Another marketing technique for the established businesses is to develop itself in the global markets. After building a dominant existence in the local markets, the next thing is to go further-Global. There are several problems with heading global. The first someone to be addressed can be the cultural differences and different consumer behavior in a specific geography. Understanding the necessity gaps, discovering the market segments with the growth potential is another big task. All this calls for extensive amounts of research and therefore certain agencies that assist in global expansions should be referred to. The major framework to be considered to design a global online marketing strategy is the Infestation analysis.

The marketing manager has to note that any communication that is being suitable for a firm/brand is regular across the boundaries such that it makes it clear in the intellects of the individuals who it is trying to communicate the same subject matter. But this can be highly difficult taking a look at the cultural distinctions. A TVC that does indeed wonders in America could flop in India due to different mind-set and approval levels of Indians. The first element in the PEST examination is

Political factors: This is something is very hard to handle in different countries. This factor consists of the extent to that your government for the reason that particular country manages the regulations. Included in these are tax-policy, labour laws and regulations, tariffs etc.

Economic factors: It includes interest rates, inflation, economic growth etc. The business in the united states depends upon them largely for example the cost of capital is determined by the current interest and hence changes the success for a firm.

Social factors: This includes the cultural areas of geography like- levels of health awareness, shopping behavior, mind-set, population development rate, career behaviour, and average working time.

Technological factors: this consists of automation, R&D, scientific changes etc. in a geography. This also changes the marketing strategies even as notice that the technical shifts change the costs and sometimes contributes to innovation.

The strategies in global expansions also change because of certain environmental and legal factors (anti-trust law, , occupation law, consumer laws etc. )

Looking at these factors we see that creating designed experiences for individuals and personalising the offerings leaves a enduring relationship between the firm and the consumer.

The firms usually react to the competitor's strategy by either increasing the advertising costs, trimming costs, or in almost all of the cases producing an identical product. The stable do not need to always react to the competitor's move immediately. It should wait for the right time and then do this. You will find two main strategies by which an establish firm expands. It either eats into the competitor's show or creates a completely new market for itself which is also known as blue ocean strategy.

There are two basic strategies that are used

P. T. O

Defensive and Offensive Marketing strategies.

Defensive strategy

The defensive strategy is mainly to discourage the challenger organizations to attack and is further divided into the pre-entry (guarding a company by rendering it difficult for another firm to enter in the same industry- boost the entrance barriers or it requires place before the market leader firm is attacked by the challenger company) and the other one is the post-entry (making the life problematic for the competitor organization once it offers entered the market).

Pre-entry protective strategy

Fortify and Defend

This mainly works by convincing the challenger organization that it is absolutely unprofitable to type in the market or it reduces the profit targets of the about-to-enter firm. That is done by creating entry barriers like location, capital requirements, usage of recycleables and distribution programs etc. The related businesses as an example that may use this strategy would be - aerospace and automobiles.

Covering all Bases

This mainly handles the fact that the existing firms should not leave any natural stone unturned. That is the company arises with all the current possible variants and the product lines in a way that there is absolutely no room for the competitor's to introduce a new product and be outflanked by them. These types of brands are known as obstructing brands which identify a niche or a unfulfilled need on the market that could have possibly proved to be a reason for the competitor's to enter.

Improving continuously

This includes participating in on the existing strengths of the founded firms. By constantly improving in scheduled course of time the businesses will develop a significant immunity from the other organizations. The businesses should play on the USPs. A business that is best known for its syndication efficiency should look for another route. And in the same way can play on with innovation, new product developments, product campaigns etc.


The established firms on the market mainly declare or signal its next action that deters the competition to enter in. This announcement can be produced through the internet, news, tv set, speeches or in trade fairs etc.

Increase the capacity

This strategy mainly is aimed at building the surplus capacity in a way that will deter the opponents to enter. This is because they will see that if they enter into their volume will simply enhance the already built excessive capacity on the market which will virtually be of no use.

Post-entry protective strategy

This is carried out by the companies to protect their existing market show from the opponents who have inserted.

Defend the position before the entrant is established

Whenever the firm enters the market it mainly goes through three phases- build itself, hold on to the success and support it and then later expand into other markets, The existing organization can attack the challenger organization right in the middle and not letting it go to the second stage.

Introducing the fighter brands

This strategy aims at launching fighter brands which is as a threat to competitor's major brand. It is mainly to provide a good competition to the competitor's price-cutting brands because the competing products are many less-priced types from the rival claiming to have the same quality at a lesser price. It has the chance of cannibalisation though.

Engage in different markets

The established companies operate in various industries and sectors. This strategy aims at attacking the rival in another area than where they may have attacked the primary organization. So here rather than giving it back again to the challenger in the central area, the best firms episodes the challenger where their durability lies (in a few other area).

Offensive Strategies

These strategies are put in place regardless of competitor's steps to keep increasing the marketplaces share. They are both direct (if the company has superior resources ) and indirect (when superior competitors are there).

They are extensive in amount and are explained in a nutshell in the next pages

Frontal Attack

This is a genuine frontal assault by engaging in the rival brand's consumers with a similar 4 P strategy.

Flanking Attack

It reduces the chance that the Frontal Harm entails. It feels in following course of least level of resistance. It disorders the challenger firm in the area where it is least competent to defend itself.

Guerrilla Attack

This is generally aimed at the firms that have not a lot of resources. This is done to harass or demoralise the challenger organization in order that they get just a little off balance.

Strategic Encirclement

It aims at targeting/encircling a definite competitor/ strong/ brand and defeating it completely. That is done for domination searching for an extended term.

Pivot and Hammer strategy

This one combines the protective and offensive strategies. The pivot this is actually the center competencies like the brand name, innovation and the purpose is to guard them. Hammer is the central force that the company has which is offensive. So both operations are occurring simultaneously. While the pivot is wanting to maintain the existing market share, the hammer is wanting to grow the show in the pie.

Predator Strategy

It aspires either at accepting lower profits exclusively to serve the purpose of removing the competitors or damaging the prevailing rivals so that they are forced to leave.

The Blue Ocean Strategy

Its goal is to avoid head-on with the competitors and totally by-pass them by discovering a totally new market that your challenger has not yet done and also have the first mover's gain.

Underdog Strategy

This is principally accompanied by some smaller organizations when they enter the market dominated established players. It includes the market better products with lower prices.

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