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Discern friend and foe: the primary marketing strategy to solve the problem

    "Who are our enemies? Who are our friends? This issue is the most important issue the revolution." This is Mao Zedong in the "all classes of Chinese society,"booster cables begins with that first sentence. Mao Zedong in 1925 wrote on the article,battery clip directly after the 20 years of the Chinese revolution to the "encircling the cities" and laid the ideological foundation for the strategic roads.

    Discern friend and foe,tow rope is also marketing the most important issue, which determines the business for a long period of time to take the strategy is to ensure that position "does not receive the wrong path," the program is located. However,ratchet tie dowm within the framework of traditional marketing, the issue has not been given adequate attention, so that the enterprise marketing Shortsighted a common problem. Well, according to market competition, and enterprise how to choose the correct strategy to "attack the real enemy," burning passion to take the victory road then?

    Binary rule and the "3 rules."

    In 1993, the strategy and marketing, Al Ries and Jack Trout proposed master binary rule (in the long run, every market will show a pattern of only two horse race), the first rule of the market reveals the basic rules of business. Similarly, in 1996, another world-class marketing master Jagdish Sheth (JagdishSheth) published the "3 laws" of the book, his theory of market evolution, known as "the field of competition in the global landmark Theory. "

    Shays believes that almost all the mature markets have a similar market structure, that is at the heart of the industry's only three major enterprises, which offers a wide range of products and services, effectively control the majority of market segments. These are called "full range of products to provide all-round enterprise," and their close combat is extremely difficult, but they are also smaller, narrower market "expert enterprise" to stay out of the room. Many medium-sized companies into the trench, that large-scale enterprise generalists and specialists in the middle of zone enterprises.

    Big Three is usually an industry controlled by 70% to 90% of the market, and expert business by attracting a small group of customers with special needs, each with 1% to 5% of the market. But in essence, a successful enterprise is its specialist market segments for the sole monopoly, they control 80% of its segment to 90% market share.

    Those who fell into the moat of the enterprise's financial situation is very bad, or because they are too weak and small enterprises can not be a generalist, or because too much can not be focused to gross profit-oriented enterprise experts. In other words, in this trench, there are small scale enterprises and the generalist segment too large enterprise market experts, they all can not long survive.

    Shays believes that the formation of the Big Three important industry because, in general, most customers consider the three options before buying. These choices constitute the so-called consumer "wake-up group" (evokedset), or called "consideration set" (considerationset). In fact, it is a typical buyer is a short list of options to consider. Similarly, in the field of organizational buying behavior, that is for business or other organization for marketing, market, customers typically consider up to three suppliers. With the option of increasing transaction costs and increased competition, so get the most value through the most efficient number is "3."

    Of course, in personal care and consumer services sector, large-scale industry restructuring does not occur. Such as beauty shops, barber shops and the like, these industries are characterized by personalized attention and intensive manual labor. Similarly, in the professional services does not apply to the "3 laws", such as law firms, accounting firms, consulting firms and advertising companies, although some large companies in these industries there.

    Third of the trench.

    Binary rule and the "3 laws" seem to have a great contradiction, in fact, both in essence completely consistent.
    Dual competition is more stable structure. In contrast, the third is the location of safety is not high enough, and the third company from the trenches close.

    Shays noted that when the following conditions, the third and any one want to be generalist business enterprises often pushed into the ditch:

    First, if the market leader with 50% to 70% market share, then the third-round type enterprise would not survive. Such as Boeing and Airbus competing in the global market, and the third eventually Boeing McDonnell Douglas merger.

    Second, if the economic downturn, the market growth is slowing down or even negative growth, then the war between the first and second usually from third to seize market share in the enterprise. Such as Coca-Cola and Pepsi competition, the crown went to the trenches in cola.

    Third, the foreign competitors to enter, the first victim is usually the third company. In the United States home appliance market, Whirlpool, General Electric and their respective companies control 25% to 30% market share, the third largest appliance manufacturer WhiteConsolidated company has a 15% market share, but in 1986 it was from Sweden Electrolux acquired.

    Therefore, the third point can be more comfortable, depending on how far it is from the trenches. The best strategy is to become the third expert enterprise. The top two against each other enterprises usually do not hurt experts. Shays pointed out that the generalist-oriented enterprises and between enterprises of experts can be said to split, they should not be treated as full competitors in most cases, they are neither compete for the same customers, and are not interested in selling the same product.

    However, there is a very tempting strategy is to try to also become experts in enterprise and all-round enterprise, which is bound to bring disaster to the enterprise.

    Such as SUV's founders, has ranked the United States ranks of the four major car companies over the years the American car companies are a great enterprise segment of the market experts, but when it tried to expand the production scale and provide a full range of products to be a versatile enterprise , it slipped into the trenches. After being acquired Chrysler, Lee lacocca leaving only the Jeep, the other brands have been abandoned. However, General Motors, Ford and the crowding out foreign competitors, the Kelaisilai got into the trenches in the struggle.

    Can be seen in the mainstream market, the final rule is binary popular, or fall into the trench in the third, or forced to become experts in enterprises. Even in the broader global market environment in the long run, when competitive forces break through the barriers, the resulting turbulence is the global market will inexorably towards the direction of dual rule.

    Be noted that the standard of competition is another matter. If the market leader for patent or proprietary standards, controls more than 70% market share, the second brand is not much living space. Such as Microsoft Windows-occupy most of the world's personal computer operating system market, Apple had to turn into an expert enterprise market segments.

    Amazingly, this country unification situation does not normally last long. Because competition in the market, there is a basic principle: never to do anything is only one way. Differentiation always occurred, new competitors will eventually appear.

    Mental location of the strategic decision to form.

    "Without competition, there is no need for competitive strategy." "Father of the Japanese strategy," Ohmae This is, indeed wise, but unfortunately it comes to specific methods of strategic thinking, Ohmae has too cliche. His strategic planning need to consider the customers, the enterprises themselves and competitors (the "strategic triangle"), the customer is placed in the position of primary importance, but to put the final competitors as its focus "from the procurement, design, engineering technology to sales and service "function to find the gap with rivals, combined with the enterprises themselves, to try to regain the lead on key features, and then turn forward to other functions.
    The theory sounds reasonable, but in reality it not work. If you're not sure anyone even competitors, how can expect improved operating efficiency to win business battle? Michael Porter, Competitive Masters books for this purpose that the long-sluggish Japanese economy, one of the major Japanese companies is the lack of strategic, long-term mutual imitation, failing to develop a unique positioning, "a strategic management tool to replace the status of" .
    I said: "Anti-persons, Road move." Gain a competitive advantage in the right way is contrary to conventional thinking, it is first placed on strategic considerations to rival the importance of location. When you know how to compete for customers and competitors, you have done around the core will continue to create value, this is the strategic efficiency.

    Clearly, companies have to compete on the market there overall insight into the situation, to choose the best strategy, and in the basis for strategic planning, participate in competition. Strategy in the form of five: defensive warfare, offensive warfare, flanking warfare, guerrilla war and preemptive war.

    Defensive and offensive warfare is against the strongest, most intense form of competition, is a large-scale industry, the major cause of concern to the performance of the consumer, but generally for the first and second and third enterprises to adopt, their desperate struggle, often to close their businesses suffered severe damage, so even if there is a third below, the hegemony ambitions, this strength is insufficient to shy away, or wait for them is the "trenches." Flanking warfare is to promote competition in the industry and innovative forms of differentiation, it needs bold, sufficient additional resources, enterprises can use only a handful of flanking warfare. And 90% of SMEs Zeyi guerrilla survival.

    Well, now there is a key question: how to determine the industry rankings for?

    Many companies prefer to use a variety of statistics, that they are the market leader. Leadership in the implementation of brand differentiation for the most powerful way. But the real leader is not recognized as self-styled market, it stepped in at the customer's mind firmly occupy the position of the first layer. If Wuliangye liquor industry has for many years is the oldest in China, the price more than once Maotai, in an organization named the "2008 list the world's most valuable brand in China" on the domestic liquor industry, Wuliangye is the only Ranking enterprises become the "undisputed The 'spirit of the King'. " Really true? Perhaps some people seem so, but in most people's mind is still the best Chinese Maotai liquor. Thus, when the Maotai fighting back, maintaining its "wine country" status, a few years more than Wuliangye, China's dominant high-end liquor well-deserved. Therefore, there are currently fighting a defensive war is Maotai, Wuliangye's competitive strategy is to maintain the offensive to secure a tie for its worthy and high-end liquor Maotai second brand position in the binary expansion of share in the competitive landscape.

    Thus, brand strategy is the basic unit of competition, not the enterprise; determine the form of a brand strategy in mind the location of customers. Mental position reflects the customer on the market situation of each competing brand awareness. War is the essence of business on customer perception of the battle. Therefore, the company's ultimate strategic goal is to make the brand in a favorable position to win customers in mind - this is positioning. In other words, the concept of positioning itself includes a competition-oriented and customer-oriented, is "Know thyself," a product, if you do not know the opponent's position is located in the customer mind, how do you know where the to Where to go?

    Five strategies form the basic principles.

    Positioning is the origin of all enterprise operations activities, is a unique and valuable strategic position created. Location is not, as some people understand it, "rigid", such as people who think "the greatest flaw is that positioning theory 'fixed', the ever-changing marketing battle, once the location of your 'fixed' down, despite only people from your head 'Offside'. "In fact, positioning is a dynamic, competitive concept, which requires companies to win first in the mind of a solid customer base, and then as a starting spot, the action for competitors to attack and with the development of the situation escalating.

    Narrow rather than a systematic understanding of positioning, many people locate the source of misunderstanding.
    Vietnam needs more small businesses locate. The strategic form of guerrilla warfare, first and foremost principle is to find enough to keep their integrity for a small segment of the market, "rather be beheaded, do not do Pteris." Although the base are fluid and may be, none of the guerrilla bases is "roving rebel bands" and many enterprises are leading a difficult life, is not positioning's sake. Wahaha launched Future Cola, considered by many the beginning of "others", it has in the vast rural market success, as the letter of the guerrilla brand.

    Of the ambitious enterprises, there are certain resources should be launched in order to become an important market flanking warfare experts in the brand. Such as King of "family medicine" and the anti-hair loss shampoo industry as the "dark horse." Flanking the principle of war is to divide the market that can cause concern to new categories, launching surprise attacks and to win the continued expansion and consolidation of positions.

    Greater risk of assault. It is diametrically opposed to directly with the leader, therefore, the principle is to avoid the first strike is true, not head-on. Successful offensive warfare without a strong leader is not found among the weaknesses, so that it can not abandon his strong to fight back, to stand in opposition leader, a leader in the consumer brand of choice for replacement.

    Leaders have to fight defensive wars, the principle is a strong opponent in time to resolve offensive. Master Kong, unity in the tea drink market share accounted for Qi Cheng, still a large advertising and relentless fight channels for Coca-Cola are repeated defeat. The best defense is to constantly challenge themselves, taking initiative, not a fixed "target."

    Form of these four strategies are based on the leader as the reference. Easy to see that the market category despite many companies claim to "first", but customers did not mind in the leader's perception, then for this gap, enterprises can spread a strong head start, this is the first to fight. Master Kong instant noodles category, Wahaha purified water category, Xizhilang category in the jelly, Diaopai in transparent soap category, are the first to establish a brand image first, and quickly turned to defensive war, in which advantages, so far.

    Be pointed out that today the development of the market category explosive situation, the consumer is not the major innovation of the new class is not much interested in trying, so-called "category strategy" to be ineffective for the reason why. Therefore, the first to want to fight the first battle of the brands should focus on the category competition - who is the enemy of our categories? How to make our category and other categories separates? To provide customers with sufficient reason to buy the brand with the development of talent and category.

    Strategic core of the transformation of the Road.

    No matter what kind of strategic form, there are three core ideas: aggressive, focused on strength and defense advantages. Is because any of the three core is a strategic form of the soul, strategic behavior is a manifestation of a consistent, Shi De Fa Zhan enterprise Keyisuizhuo the strategy to the Bu Tong Xing Shi Jinhangzhuanhuan can also be in a different space implementation of the different strategies, or at the same time and space to operate a variety of strategies for multiple brands.

    Active attack, that target customers in mind to save themselves, destroying the enemy, that is to become their own market segments where monopoly. To achieve this goal, we must focus on strength, obtained in the local marketing battle has an absolute advantage. However, this does not mean that all forces should be used to launch a campaign of rivals, on the contrary, smart marketers are opponents to attack him, and he himself is in a strong defensive position. Of course, where defense is the active defense, that defense has an offensive mentality, defensive opponents in order to consume resources and then counterattack to win. Clearly, the idea is to grab defensive advantage in mind there is no strong rival customers occupy a favorable position, and then engage in a strong focus - on the one hand for customers to feel the importance of this position, thus facilitating the bigger category; 1 to attract colleagues to follow up, they are relatively disadvantaged, then you can rely on first-mover advantage was wiped out, and thereby maintain its monopoly position.
    It is the power of dominant defensive force who was wise to avoid playing the "setback in the firm under the city," the tough fight, but avoid the attack by imaginary, innovative play flank. Living in low-level guerrilla warfare, on the other hand, actually reduces the size of defensive warfare, which for the brand management 'target = _blank> the weak links and build a strong brand fortress, every step, are faced with even more weak than it competitors. Therefore, many big brands are starting a guerrilla war from the accumulation of growing up.

    Li Bai is the rise of Chinese SMEs with guerrilla representatives. Chen started doing laundry detergent Triumph dealer in the Guangdong Province in 1991, he was in the form of established Liby OEM brand. At that time the two P & G's Tide and Ariel washing powder brands robust in much of the local brand is the country's second wave of odd, so Chen triumph away from large cities, main attack the rural market, a county in a county to launch a marketing campaign. Chen triumphant first to build a model home Puning County market, thereby adding to attract neighboring distributors, four years after the occupation of the Chaozhou region. Liby began in 1996 to expand sales in the Guangdong area, happened at this time of high waves odd sideline after R & F and P & G joint venture, foreign brand positioning too high, leaving a large gap in the high-end market, Li Bai flanking war launched soon to fill the gaps in high-end market, and use it as base blaze Guangdong, the ultimate number two boarded the country detergent, sold only to Diaopai.

    Guerrilla warfare is often the success of enterprises to develop foreign markets form. Haier refrigerator into the U.S. market, is from is Whirlpool, General Electric, Electrolux, LG and other major producers to do high-end appliances ignored by the market started a mini refrigerator, small refrigerator in the field to become the first American brand. But Hale did not consolidate this position, focusing on the small refrigerator in the global market-driven and expand the category, and then look for an opportunity to play wing war, but eager to represent a major step to launch a large, luxurious Casa Imperial refrigerator, results of high-end market in the United States by the cold, had to be shipped back and sold as "the first overseas plant products will be sold back to China," China's home appliance brand.

    Mao Zedong said: "The command of the overall situation of people, the most important thing is to put your attention on the top taking care of the global war. Is mainly based on the situation, take care of the composition of forces and the Corps, to take care of the relationship between the two campaigns, take care of all stages of the relationship between war, to take care of all our activities and the relationship between all the activities of the enemy, these are the most difficult place to go if this busy losing some minor problems, it inevitably suffer a. "strategic choice Haier mistake, because the global awareness of its ambiguous.

    The so-called global, is the brand customers the competitive situation in mind, it is the business objective portrayal of the real competitiveness is the enemy strengths and weaknesses of the holographic password. Only have a clear understanding of this enterprise to correctly select the appropriate strategy for the form, so that all the operating activities contribute to strengthening their comparative advantage on the competitors to compete in an increasingly brutal market to navigate, this is the strategy for victory.

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