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A good volume of ancient dollar segment is all that looked in marketing. There is no other valuable kind of leadership. Thus, the best applications of defensive marketing strategy are such the following below:

• Maintaining the volume segment leadership.
• Formulating the answers toward challenges.
• Choosing exact defensive strategy.
• If you are not a leader, use this selector strategy to anticipate the defensive movements of market. Look for idea for the following market followers to attract benefit from the entry of challengers.

The Procedure of Defensive Marketing
In this topic we will see the list of alternative defensive strategies with examples and suggestions about how to use it. Start with making verification of your leadership position—are you really strong enough in leading like what measured with market segment? And, is your method in measuring market segment can be accepted? (Some companies are proclaiming leadership based on the very narrow of market definition, that probably good for relation with public but very bad for choosing a strategy).

If you have a clear leadership position, your important strategy is about how to maintain it. Learn the collection of defensive strategies of DiMingo for leaders used to be capable in considering all choices that had been found by companies and experts of other theories. Just remember that. “Even though a certain company might be the number one in the field of  research, product design, or even profitability, or “the first,” “the best,” “the most up to date or the greatest” in several fields, they have to be number one in market segment in order these strategies can be effective. Because of those things that the DiMingo strategy for leaders has been indeed some strategies for not leader, that generally also really want to answer the last challenger, and the one that will feel frustrated with the general wisdom that make them always on the margin.

Market Segment Leadership Strategy
1.  Raising structural cumberer to enter a market (shark chasing away).

• The target is to make challengers spend expensive costs. Sometimes existing cumberer has been strong enough to make protection, but if the history has not been resulting wall around your position, you are able to:
• Filling the gaps in product line, like what had been done by Seiko when they were acquisitioning Pulsar to block the attack from Citizen and Timex.
• To hamper the access to important distribution access, like what the IBM made by cased up “all possibilities of measurement and permutation hard instruments, soft instruments, as well backing services, so that the challengers crowd were outside of many market access.”
• Raising economic scale, for instance, with increasing the pressure to new product development (a great deal of development costs are consists of fixed cost that will be more economics if spread to greater product line).
• Increasing the capital amount that needed for competition, such as, offering services, equipments, or even special facilities to certain customers.
• Closing alternative technologies, like what Xerox done in the first beginning of photocopy with acquisitioning patent and license, research and aggressive development, and joint venture efforts with technology innovators.
• Protecting the technology leadership like what Michelin has done by” aggressive patent ownership and suing patent right breakers. “
• Limiting the access of resources, like what that done by Coca Cola towards long term purchasing contracts with sweetener material producer.
• Make a coalition with competitors.

2. Giving Revenge Sign (Admonition Shoot)
The target is to make your commitment at market more clear so that competitors afraid with the expensive and long competition, and decide that avoiding is the better strategy.

• Create an effective plan (with using approach from the strategy 1) and announce it, like what Dow Chemical done when they pronounced a huge number of capacity addition to produce magnesium
• Leak the information about future inhibitor, such as, a technology that has been developed.

Make a commitment to have a lower price (“we will not sell under the product market price”). This strategy will be effective toward low price competitors if your cost is lower. (But make sure that the answer from the cheap price is appropriate.

3. Reducing the encouragement to attack (be ready to encircle)

• “Increase the penalty for the segment that out or loss” with increasing the capacity far before the demand occurred, abide long term input contracts, to increase the vertical integration, and planting infestation in special facilities.”
• Heap weapon and show it up. The existence of “resources to revenge” that appear clearly like the excess of cash back up with new product models will make you a non interesting target.
• Suggest the competition between players and use them as the first line of defense.

Ideas for Market Followers
What will you do if you are not a market leader, and your market is being attached by new challenger? DiMingo is describing it very clear that these strategies are staked is only for leaders. In many cases, follower is not having strong resource and position to implementing it effectively. Sometimes, trying to do one of these strategies will be dangerous. The effort of lower segment player to increase barrier maybe will throwing them from the market and beneficial for bigger competitors, for instance. Unfortunately, managers are often in the second position or follower companies (however followers are far more a lot compared with leaders). Even though there are suggestions from experts, sometimes feeling bad if only sit at a side and waiting the competition results. Below are several suggestions that had been developed for clients about how the way of market followers can achieve benefit with involving in a war.

• Make sure that the leader is defend itself.
• Bedevilment benefitted.
• Become a person that very needed by leader.
• Be the person that very needed by challengers.

Refference: Edward P. DiMingo, “Marketing Strategies for Small-Share Players, “The Journal of Business strategy, January/February 1990: 26-30.

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