1. Chapter Thirteen Defensive Strategies

2. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall13-2 Defensive Strategies Defensive strategic marketing plans Defensive core strategies: –Protect position –Optimize position –Monetize, harvest, or divest Selecting a defensive strategy

3. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall13-3 Defensive Strategies Figure 13-3 Strategic Market Plans and Performance

4. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall13-4 Defensive Strategic Market Plans What are the main objectives of defensive strategies? When are defensive market plans employed? Figure 13-5 Portfolio Positions and Defensive Strategic Market Plans

5. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall13-5 Core Defensive Strategies Core Strategy 1Core Strategy 2Core Strategy 3 Protect PositionOptimize PositionMonetize, Harvest, or Divest Maintain SalesMaximize Profits Cash Flow

6. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall13-6 1.Protect position in growth markets 2.Protect a high-share position 3.Protect a follower share position 4.Protect a niche share position Defensive Core Strategy 1: Invest to Protect Position Sub Strategy ASub Strategy B Protect Market Share Build Customer Retention

7. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall13-7 Protecting Follower Share Position Figure 13-8 Market Structure and Share Position

8. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall13-8 Defensive Core Strategy 2: Optimize Position Sub Strategy A Sub Strategy B Maximize Net Marketing Contribution Selective Market Focus

9. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall13-9 Defensive Core Strategy 2: Optimize Position Figure 13-14 Profit Life Cycle and Components of Marketing Profitability

10. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall13-10 1.Harvest Price Strategy 2.Harvest Marketing Resource Strategy 3.Divest Market Strategy Defensive Core Strategy 3: Monetize, Harvest, or Divest Sub Strategy ASub Strategy B Manage for Cash Flow Harvest-Divest for Cash Flow

11. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall13-11 Defensive Core Strategy 3: Monetize, Harvest, or Divest Figure 13-17 Harvest Price Strategy

12. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall13-12 Review Defensive strategic marketing plans Defensive core strategies: –Protect position –Optimize position –Monetize, harvest, or divest Selecting a defensive strategy

13. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall13-13 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2009 Pearson Education, Inc. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall