Aggressiveness strategy

From CEOpedia | Management online

Aggressiveness strategy of marketing is related to the scope and weight of the competitive techniques and tools used to obtain competitive advantage over other players in the market.

Four degrees of aggressiveness strategy

  • prospector strategy - means that the company is dominated by strengths, and there are strongly related opportunities in the environment, it is a strategy of strong expansion and development using both factors as best as possible. Prospectors builds strong competitive advantage using various methods of marketing mix. It bases its marketing strategy on quick response to consumer needs. Aggressive strategy includes such activities as: capturing opportunities, strengthening the market position, taking over organizations with the same profile, concentrating resources on competitive products. It should be noted that this strategy does not involve broad market research activities and comprehensive market data analysis.
  • defender strategy - is based on enabling the company to survive or combine it with another one. In the pessimistic version, the company should prepare itself for liquidation. The main goal of this strategy is to secure liquidity in the short term, eliminate or decrease influence of current threats, maintain financial credibility and maximize profit. By adopting this strategy, the company strives to maintain its market position and adapt to existing barriers in the market, strives to operate within its existing market and organizational structure. Managers in defender strategy try to acquire short-term capital and fully exploit the possibilities of self-financing.
  • analyzer strategy - managers in this strategy perform broad marketing research and analysis to reduce risk, maintain current revenue, reduce competitors influence. The analyst's manager deals mainly with obtaining information from the organization's environment and internal situation in order to secure the current functioning of the company. It does not take the risk of investing in new markets and products for which there is no certainty of success due to the lack of information.
  • reactor strategy - strategy focused mainly on maintaining the status-quo of the company. Managers react only to changes adversely affecting the current operations of the organization (sales, profits, and customer acquisition). The reaction usually takes place only when the negative impact of competition, the state of the economy or the expectations of customers start to have a fundamental negative impact on the financial results and pose a threat to the existence of the enterprise

Examples of Aggressiveness strategy

  • Price competition: Setting prices lower than competitors in order to draw in more customers and gain market share.
  • Promotion: Offering discounts, coupons, or other incentives to attract customers.
  • Advertising: Using commercials, radio spots, and other forms of advertisement to create brand awareness and visibility.
  • Product innovation: Creating new products or services that are different or better than the competition.
  • Distribution: Optimizing distribution channels to ensure products are available at the right place and at the right time.
  • Customer service: Providing superior customer service to create loyalty and gain market share.
  • Strategic alliances: Forming partnerships with other companies to gain access to new markets or resources.

Advantages of Aggressiveness strategy

Aggressiveness strategy of marketing is a competitive technique and tool used to obtain competitive advantage over other players in the market. Its advantages include:

  • Gaining market share: Aggressiveness strategy of marketing can help a business to gain market share by introducing new products, services, or promotions that can attract more customers.
  • Enhancing brand recognition: Aggressiveness strategy of marketing can help a business to raise its brand recognition and awareness by advertising and promotion activities.
  • Increased ROI: Aggressiveness strategy of marketing can help a business to increase its return on investment (ROI) by targeting different segments of the market and creating a competitive edge.
  • Improved customer satisfaction: Aggressiveness strategy of marketing can help a business to improve customer satisfaction by providing innovative products and services that meet customer needs.
  • Increased sales: Aggressiveness strategy of marketing can help a business to increase its sales by creating attractive packages and discounts that customers can find appealing.

Limitations of Aggressiveness strategy

  • Aggressiveness strategy of marketing may lead to a negative perception of the brand in the market. Such a strategy may create an impression that the firm is too desperate to gain market share and customers.
  • Aggressiveness strategy may also lead to legal repercussions, if the aggressive tactics violate any existing laws or regulations.
  • Aggressive marketing strategy can also lead to a loss in customer loyalty and trust. Customers may find the overly aggressive tactics too invasive and be turned off by it.
  • Aggressiveness strategy of marketing can be a costly affair, as it involves a lot of resources, both in terms of time and money.
  • The aggressiveness strategy of marketing can also lead to increased competition, as other players in the market may respond with their own aggressive tactics. This can lead to an all-out war as each firm tries to outdo the other.
  • Such a strategy can also be difficult to maintain in the long-term, as it requires a lot of effort and resources to sustain.

Other approaches related to Aggressiveness strategy

Aggressiveness strategy of marketing is related to the scope and weight of the competitive techniques and tools used to obtain competitive advantage over other players in the market. Other approaches related to Aggressiveness strategy include:

  • Price Skimming: This is a strategy used to maximize profits by charging a higher price for a product or service. By charging a higher price, the company can recoup their investments in research and development more quickly.
  • Penetration Pricing: This is a strategy used to gain market share by offering products and services at lower prices than competitors. This is commonly used when entering a new market or launching a new product.
  • Bundling: This is a strategy used to combine products and services into one package to attract customers and encourage them to buy multiple products and services.
  • Networking: This is a strategy used to build relationships with other companies and organizations to gain market share and increase brand visibility.
  • Advertising and Promotion: This is a strategy used to create brand awareness and attract customers. Advertising can be done through various channels such as television, radio, print, and online.

In summary, Aggressiveness strategy of marketing is related to the scope and weight of the competitive techniques and tools used to obtain competitive advantage over other players in the market. Other approaches related to Aggressiveness strategy include Price Skimming, Penetration Pricing, Bundling, Networking, and Advertising and Promotion.


Aggressiveness strategy — recommended articles
Competitive environment — Value drivers — Goals of marketing — Market maturity — Market opportunity — Price and non-price competition — Competitive rivalry — Competitive risk — Competitive position — Risk policy

References

Author: Krzysztof Wozniak

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