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Question

The strategies of flanking defense, preemptive defense, mobile defense, contractor defense and counter offensive defense is used by which market player?

(A) Market challenger

(B) Market leader

(C) Market follower

(D) Market Nicher

(E) Start up Marketer

Choose the most appropriate answer from the options given below:

The correct answer is

(B) only

Understanding Market Defense Strategies

In the competitive world of marketing, different players adopt different strategies based on their position in the market. The question asks about specific defense strategies: flanking defense, preemptive defense, mobile defense, and counter offensive defense. These strategies are typically employed by a market player seeking to protect its existing market share and position from competitors, particularly market challengers.

Who Uses Defense Strategies?

Defense strategies are inherently about maintaining one's current position. The player who has the most to defend is usually the market leader, the company with the largest market share. A market leader needs to continuously ward off challenges from competitors trying to erode its dominance.

Let's look at the typical roles of different market players:

  • Market Leader: Has the largest market share and aims to protect it while potentially expanding the total market. Uses defense strategies.
  • Market Challenger: The second largest firm, aiming to increase its market share and become the leader. Uses attack strategies (e.g., frontal attack, flanking attack, bypass attack).
  • Market Follower: Firms that are content to maintain their share and avoid direct confrontation with the leader. They often imitate the leader's products, distribution, etc.
  • Market Nicher: Firms that serve small, specific segments not served by larger firms. They specialize to survive and thrive.
  • Start up Marketer: A new entrant focusing on establishing a presence, often in a niche or disrupting the market.

Given this, defense strategies like those listed are primarily the domain of the market leader.

Exploring Key Market Defense Strategies

Market leaders employ various defense strategies to protect their position. Some common ones include:

  • Position Defense: Building an impregnable fortification around one's primary market position.
  • Flanking Defense: Protecting weak flanks or launching counter-attacks into the challenger's flanks.
  • Preemptive Defense: Attacking a competitor before they can launch an attack. This could involve announcing new products or price changes in advance.
  • Counteroffensive Defense: Responding to an attack by counter-attacking the challenger's strengths or weaknesses.
  • Mobile Defense: Stretching one's domain over new territories through market broadening (shifting focus from the current product to the underlying generic need) and market diversification (moving into unrelated industries).
  • Contraction Defense (or Strategic Withdrawal): Giving up weaker markets to concentrate resources on stronger ones. Note: "Contractor defense" mentioned in the question might be a variation or a less standard term, possibly related to defending against attacks from or involving contractors, or it could be a typo for "Contraction Defense". Assuming the standard marketing terminology, defense strategies like Flanking, Preemptive, Mobile, and Counter Offensive are classic market leader defense tactics.

Connecting Strategies to the Market Player

The strategies mentioned in the question (Flanking defense, Preemptive defense, Mobile defense, and Counter offensive defense, along with Contractor defense which might be related to Contraction defense or a different specific context) are all methods aimed at protecting an existing position or market share. This aligns directly with the objectives of a market leader.

Challengers attack, followers emulate, and nichers specialize. Start-ups focus on entry and growth, not typically defending a large established share.

Strategy Type Primary Objective Typically Used By
Defense Protecting market share/position Market Leader
Attack Gaining market share Market Challenger
Followership Maintaining share by imitation Market Follower
Niche Serving a specific segment Market Nicher

Therefore, the set of strategies listed in the question is characteristic of a market leader's approach to maintaining its dominance.

Revision Table: Market Player Strategies

Market Role Key Objective Common Strategy Types
Market Leader Protect & Expand Total Market Defense (Position, Flanking, Preemptive, Counteroffensive, Mobile, Contraction)
Market Challenger Increase Market Share Attack (Frontal, Flanking, Encirclement, Bypass, Guerrilla)
Market Follower Maintain Share, Profitability Imitation, Adaptation, Cloner, Imitator, Adapter
Market Nicher Serve Small Segment Profitably Specialization (End-user, Vertical-level, Customer-size, Specific-customer, Geographic, Product/feature, Product-line, Channel)

Additional Information: Strategic Marketing Roles

Understanding the strategic roles companies play in a market helps explain their typical actions and strategies. These roles are not always fixed, but they describe common competitive positions:

  • Market Leadership: Often involves not just defending share but also innovating and expanding the overall market size, which benefits the leader most.
  • Challenging: Requires identifying the leader's weaknesses and concentrating resources to attack them effectively.
  • Following: Minimizes risk by avoiding direct battles and learning from the leader's successes and failures. Requires strong operational efficiency.
  • Niching: Focuses on deep understanding and serving a specific, often underserved, customer group, building strong customer loyalty and potentially high-profit margins in that niche.

The defense strategies discussed are specifically tools for the market leader to maintain their competitive advantage and protect their position against firms attempting to change the market hierarchy.

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Important Questions from Strategic marketing planning

  1. EPRG framework in International Business refers to

  2. How many types of consumer clusters are defined in the VALS framework, which divides consumers according to their buying motivation behavior?

  3. Match the items of List-I with List-II and denote the code of correct matching. 

    List – I List – II 
    a. Invest Strategy i. No receiving of new resources. 
    b. Protect Strategy ii. Well financed marketing efforts. 
    c. Harvest Strategy iii. Selective resource allocation 
    d. Divest Strategy iv. Not warranting substantial new resources.

     Codes :

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