Marketing is War

We talk about the ideas of Jack Trout and Al Rice from the book "Marketing Wars".
At one time, she turned the idea of ​​marketing, becoming a classic of business literature.

What is Marketing War about?

As the name suggests, this book is about war. Since the marketing strategy, according to the authors, this is the art of war. Not with the consumer, of course, - with competitors. No wonder the book is preceded by a dedication to Karl von Clausewitz, a retired Prussian general and author of the famous work “On War”. In a dedication, Trout and Rice call him one of the greatest marketing strategists.

Each idea of ​​the book is supported by a quote from von Clausewitz - on combat methods, troop construction, offensive and defensive operations, and most importantly - on strategy and tactics, without which there are no battles. For example, large companies competing with each other for sales markets, you can see the strategy and tactics in action.

So, how is war related to marketing? Consider the basic ideas of "Marketing Wars."

Idea No. 1. Free enterprise is a war, and marketing is a military strategy.

To capture and hold your part of the market, you need to win the battle with competitors. Marketing used to study demand. The studies determined the needs of potential buyers, compared them with the production capabilities of the company - and, if the needs were relatively in line with the capabilities, the product production process was launched. All this, according to Trout, is fundamentally wrong.

You need to focus on competitors. Do not copy their actions or products, but look for vulnerabilities and beat them. Consumer is a territory that needs to be captured and held. The competitor is the enemy. Marketing is a battle strategy, the art of winning or at least not losing, taking a defensive position.

Idea No. 2. The winner is the one with more troops

Clausewitz formulates this idea as a principle of strength. History knows almost no examples when a large army would be defeated by a small one.

According to the authors, in World War II, the Allied forces defeated, crushing the enemy by number. There were four allied two German soldiers, eight eight for four soldiers, and no military talent would have mastered this math.

In the battle of competitors, the same principle works. A large market share, a larger staff of employees, many points of sale, more opportunities to pay for an advertising campaign are all huge advantages.

Many companies rely on “best people”, “best product”, that is, on quality, not quantity. They seek and hire the best specialists, counting on a personnel advantage. However, the quality, according to the authors, is of great importance, but not decisive. To paraphrase Suvorov “They fight not by numbers, but by skill”, we can say that the key to victory is skill plus number.

This does not mean that smaller companies should give up and leave the market. They should have their own military strategy. They need to survive, taking a strong defensive position, and from there look out for the enemy’s weak spot.

Idea No. 3. Defensive position is a good way not to lose the battle.

Military strategists believe that in order to break through a defense it is necessary to have about three times more forces in the place of attack than the enemy, otherwise an attack does not make sense at all. This idea is illustrated by the example of General Motors. A leader in the automotive market, General Motors wins because it does not lose. Its position is strong, the market dominates. All that is required is to protect what has been achieved. Not just resist the enemy’s plans, but build your own strategy.

As for the attackers, they should remember the optimal balance of power during the attack. There are many examples of how frivolous attacks ended in complete defeat. In the marketing world, this, according to the authors, RCA Corporation, which was originally engaged in broadcasting, then television and the production of television sets, including color ones, suddenly decided to switch to computers and compete with IBM. It ceased to exist in 1986. General Electric, having absorbed RCA, did the same, and also unsuccessfully. In vain were spent energy and resources. Office equipment manufacturers Exxon and Lanier tried to compete with the same IBM in office automation, and also lost. Including because it is difficult to carry out an unexpected attack when the enemy is on the defensive.

Idea No. 4. Only a leader can afford a defensive war

As an example, the authors cite the same IBM. Having captured the market, it firmly holds the defense with an unusual strategy - it attacks itself. What does it mean? That she constantly updates goods and services, making each next product better than the previous one. Another example is the company Gillette, which produces razors. When it was attacked by a competitor, Wilkinson Sword, which first released a blade sealed in a plastic machine at the right angle for a better shave, Gillette responded with the first razor with two blades. Consumers preferred double blades, abandoning single-machine tools, including those released by the same Gillette. This is an attack on ourselves, which has borne fruit - the competitor has not captured this market share. Gillette sacrificed quick and short-term profits, but retained leadership.

Another principle of a defensive war is to always leave a reserve, not throwing all its strength into deterring competitors. In this case, the company will always have room for maneuver. So, the Anheuser-Busch company, which produces Budweiser beer, does not show itself in any way until sales are reduced. As soon as this happens, she runs a wide advertising campaign, and sales are growing again. This saves money and creates a reserve "for a rainy day", in case the competitor goes on the attack.

Idea No. 5. Military strategy depends on the position of the company in the market.

According to the authors, each company can choose a marketing strategy depending on its strength (captured market share). For a leader, defense is most suitable; for his closest competitors, an offensive. The weakest should choose a guerrilla warfare strategy.

We have already considered the defense, we will move on to other methods of war.

Offensive strategy. It would seem pointless to attack an impregnable fortress - a market giant. Nevertheless, competitors do it anyway, and for those who are just a step or two behind the leader, this is especially tempting.

Do they have a chance of success?

Yes - subject to a competent military strategy. First, you need to carefully monitor the leader, identifying his strengths. It is in this power that a vulnerability can be hidden. It is necessary to observe and decide in which way it is possible to reduce its market share.

The next step is to identify the weak spot in the leader’s defense. No matter how strong the enemy, there is always a gap in his armor, his own Achilles heel. So, for example, Hertz, a leading car rental company, is vulnerable precisely because of its popularity - a client cannot always rent a car on time. This weakness was exploited by Avis, a smaller competitor, with the slogan “Rent from Avis. Our turn is shorter. ” A similar example, according to the authors, is General Motors, whose good sales create a weak spot on service sites, the only segment in which American Motors has outperformed it.

To find such a weak spot in the leader and hit him with all available resources, the authors call "attack with a narrow front." This principle was often applied during the Second World War.

Flank war.At the beginning of the book, the authors cite the famous battle of Alexander the Great as an example. His opponent, the Persian king Darius, placed cavalry and elephants in front. Alexander attacked with the right flank, forcing the Persians to attack from the left, and meanwhile he launched the cavalry bypassing both flanks, which helped to win the battle. In relation to marketing, the flank maneuver provides for action in a no man's land, that is, the creation of a fundamentally new product. In any case, it should look like this in the eyes of the buyer - thanks to the elements of novelty. In other words, it is a search for new segments or niches in the market. As an example, the authors cite beer Miller Lite. When it first appeared, the market for light beer did not exist. Miller has opened a new segment and has successfully established itself on it, beating competitors. For competitors, this was a complete surprise. The success of Miller was reinforced by increased investment in advertising.

There are different types of flanking attacks in marketing: low price (cheap Savin copiers competing with Xerox), high price (Joy perfumes, “the most expensive in the world), small size (Volksvagen cars), distribution system (selling Timex watches in pharmacies ) and similar actions in opposition to competitors.

Guerrilla warfare.Even small companies can wage a guerrilla war for the market. The main thing is that the market segment they occupy is small. Larger competitors find it difficult to turn around on a tiny battlefield. An example of successful guerrilla warfare is, according to the authors, Rolls-Royce, a company selling cars for more than $ 100,000. She has few competitors in this small market. The company knows this and does not seek to expand its range with the release of cheap models in order, for example, to lure buyers of other manufacturers to itself. Rolls Royce cannot be a cheap car.

A company that has chosen a guerrilla strategy must be mobile, fast and have a very small staff, so that at any moment to get together, rise and start all over again in any other place.

Idea No. 6. The ultimate goal of military strategy is to achieve tactical results.

It is impossible to separate strategy from tactics. A soldier becomes a general through participation in real battles, comprehending the tactics of a real battle. The authors cite the example of Napoleon, who became an artilleryman when cavalry was in fashion and infantry was used in attacks. He studied the possibilities of heavy artillery in battles and subsequently brilliantly used in battles.

In the business world, artillery and tanks, according to the authors, are advertising. Along with it, you can use infantry (direct sales), but the decisive battle is won by advertising, if you know how to use it. A small company should be especially careful about “using artillery” - an advertising strategy.

Idea No. 7. A true combat general should lead the war.

The trouble with modern business, according to the authors, is the absence of “marketing generals." There are too many theorists, indecisive people, by all means avoiding responsibility, unable to make a decision in time. They did not become battle-hardened, and their excellent education in practice brings nothing but a good position.

A true marketing general must be flexible - be able to adapt the strategy to the situation, and not in isolation from it. Decisive - after listening to everyone and weighing everything, he concentrates and, taking responsibility for himself, makes a decision. He must in practice learn the rules of battle, and not act blindly. And, of course, among other things, he will need luck.

Final comments

Despite the fact that the book “Marketing Wars” was written 30 years ago, modern marketers and managers will also find a lot of practical advice in it, since the principles of the ancient art of war do not change over time.

She will make many theorists and inexperienced businessmen think and act differently. In this case, of course, it is worthwhile to understand that this book is not a practical guide-marketing guide - the authors talk about the general principles of marketing strategy and tactics, illustrating ideas with stories of successes and failures of well-known companies.

The advantages of the book, in addition to a good language and logical presentation, include vivid practical examples of the war of famous brands: Coca-Cola and Pepsico, McDonald's and Burger King, IBM and Apple, and many others.

There are no significant shortcomings, although some readers are slightly repelled by the excessive peremptoryness of the presentation. Occasionally, authors treat historical events too freely. Many ideas of the strategy and tactics of marketing wars are universal, but still it is worth remembering that it was written for American, not Russian, business, the principles of which do not always coincide. By the way, there is a publication of this book, adapted for the domestic reader - with cases of Russian companies.

Since its first publication in 1986, the book has been regularly reprinted, indicating a continuing interest in the topic of marketing wars by readers. If your business or area of ​​interest is related to marketing, then this book is definitely worth reading.

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