Chapter Thirteen

Defensive Strategies

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Defensive Strategies

• Defensive strategic marketing plans

• Defensive core strategies:– Protect position– Optimize position– Monetize, harvest, or divest

• Selecting a defensive strategy

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Defensive Strategies

Figure 13-3 Strategic Market Plans and Performance

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Defensive Strategic Market Plans

• What are the main objectives of defensive strategies?

• When are defensive market plans employed?

Figure 13-5 Portfolio Positions and Defensive Strategic Market Plans

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Core Defensive Strategies

Core Strategy 1 Core Strategy 2 Core Strategy 3

Protect Position Optimize Position Monetize, Harvest, or

Divest

Maintain Sales

Maximize Profits

Cash Flow

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1. Protect position in growth markets

2. Protect a high-share position

3. Protect a follower share position

4. Protect a niche share position

Defensive Core Strategy 1: Invest to Protect Position

Sub Strategy A Sub Strategy B

Protect Market Share

Build Customer Retention

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Protecting Follower Share Position

Figure 13-8 Market Structure and Share Position

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Defensive Core Strategy 2: Optimize Position

Sub Strategy A

Sub Strategy B

Maximize Net Marketing

Contribution

Selective Market Focus

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Defensive Core Strategy 2: Optimize Position

Figure 13-14 Profit Life Cycle and

Components of Marketing Profitability

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1. Harvest Price Strategy

2. Harvest Marketing Resource Strategy

3. Divest Market Strategy

Defensive Core Strategy 3: Monetize, Harvest, or Divest

Sub Strategy A Sub Strategy B

Manage for Cash Flow

Harvest-Divest for Cash Flow

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Defensive Core Strategy 3: Monetize, Harvest, or Divest

Figure 13-17 Harvest Price Strategy

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Review

• Defensive strategic marketing plans

• Defensive core strategies:– Protect position– Optimize position– Monetize, harvest, or divest

• Selecting a defensive strategy

13-13Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice Hall

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Copyright © 2009 Pearson Education, Inc.  Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice HallPublishing as Prentice Hall