"The best book on marketing, in our opinion, is not the work of a Harvard professor, nor of any distinguished collaborator of General Motors… is the one written in 1832 by a Prussian general in his retirement days Karl von Clausewitz entitled" About war "that describes the strategic principles observed in all triumphal wars…". Ries-Trout.
Among the military classics to which specialists in management issues have come to find lessons that can be applied in business, one of the most “consulted” is Clausewitz, in the classic work mentioned in the previous quote.
Al Ries and Jack Trout, authors of some "best-sellers" on marketing topics, use it profusely in their book "The Marketing War" which, despite having been published for two decades, maintains their interest. Ries-Trout base the convenience of going to Clausewitz in the following:
“Currently, the nature of marketing is not to serve the customer, but to outwit, flank and put the competitor out of action. In short, it is a war where the enemy is the competition and the client, the territory that must be won… ”. Later they lament that "… the hundreds of definitions that exist of the marketing concept almost never mention the word competition…".
Due to its interest and currency, a summary of some of the Clausewitz principles and strategies taken by these authors, and their possible lessons for marketing, is presented below:
- The principle of force
Clausewitz: “The greatest number of troops must go into action at the decisive point.
Teachings. When two companies go head to head, the same principle applies. God favors the one with the largest sales force.
Ries-Trout wonder "Is there no future for the small competitor?".
They answer "of course they do", for which they go to a quote from Napoleon "The art of war with a smaller army is to always have more forces than the enemy at the point to be attacked, or defended ”. This is the equivalent of the recommended strategies for small companies, attacking niche markets that, due to their volume or other reasons, are not interesting, or cannot be served by large companies.
- Defense superiority
Clausewitz. The defensive form of war is itself stronger than the offensive. For an attacking force to succeed, it must have a superiority of at least three to one at the point of attack.
Teachings. Snatching the business from an established competitor is almost always more difficult than obtaining a business from a prospective customer, not previously committed. According to Ries-Trout, the biggest mistake marketing experts make is failing to appreciate the strength of a defensive position.
- The nature of the battlefield
Clausewitz. Due to the form of our adversary's position, we can draw conclusions regarding his projects and, therefore, act in accordance with them.
Teachings. Making a simile with the war, Ries-Trout, they argue that the hills are the strongest positions, they are the ones occupied by the leaders. In the automotive industry, this position was held by Ford, but General Motors "broke the mountain." The "segmentation strategy" is a good weapon to attack the leader's "mountain", these authors conclude.
- The defensive marketing war
Interpreting the "teachings" of Clausewitiz, Ries-Trout, they state that there are three principles of the defensive marketing war:
1-Only the market leader has the option to play defense
For these authors, this is not the case, since “almost all companies consider themselves leaders in some aspect”, region, market segment, etc. But, companies do not create leaders, who create them are consumers. It is necessary to be clear in what we can propose to be leaders, to be convinced of this, before going out to convince others. An efficient marketing general must have a clear vision of the real situation, so that he can conduct himself according to reality. "You have to deceive the enemy, never yourself," they conclude.
2-The best defensive strategy is the courage to attack yourself
The most productive way to reinforce your position is to constantly attack it, pose Ries-Trout. You strengthen your position by introducing new products or services that make existing ones obsolete. Competition struggles nonstop trying to catch up. A moving target is more difficult to hit than if it is held steady.
3-The energetic movements of the competition must always be blocked
If a leader loses the opportunity to attack himself, he almost always recovers by copying the movement of the competition. However, the leader must counterattack quickly, before the attacker can establish himself. Many do not do it out of pride or, even worse, criticize the development of the competitor until it is too late to save the situation. An effective strategy for leaders is to keep "something in reserve", to be able to respond to an attack by competitors. "The number of new reserves is always the main point considered by both commanders," says Clausewitz.
- The marketing war on the offensive
According to Ries-Trout, offensive and defensive strategies are so closely related that it is difficult to separate them. They believe that leaders should wage a defensive fight, while the offensive fight concerns companies that rank second or third in a given sector. Hence the importance of constantly asking ourselves what position we have in the market ?, before applying any strategy. For this type of "war" they propose three "offensive principles" that can be summarized as follows:
1-The main consideration is the strength of the leader's position
What a No. 2 or 3 company should do is focus on what the leader does: the leader's product, its sales force, its prices, its distribution mechanisms. No matter how strong a No.2 company is in a certain category or attribute, it cannot win if this constitutes the strong point of the leader, who owns a position in the mind of the prospective customer. It is necessary to focus on the enemy and not on oneself. They should look at the leader and ask "how can I decrease their action in the market?", Ries-Trout propose.
2-Find a weakness in the leader's strong point and attack him
Sometimes leaders have weaknesses that they may overlook, consider insignificant, or completely forget. Avis, which rents cars, announced “Rent at Avis. The waiting line at our counter is shorter. ” Hertz, the largest car rental company, has a hard time competing with this strategy. Their high sales volume causes them problems in the service area. Achilles had a tendon that led to his ruin, Ries-Trout conclude.
3-The attack should be launched towards a front as small as possible
Attack, preferably with a single product, suggest Ries-Trout. The “
full line ” is a luxury that only leaders can afford. This is an area where marketing experts have a lot to learn from the military. During World War II, offensive attacks were launched on a greatly reduced front, sometimes concentrated on a single highway. Only when a breach was opened did the attacking forces disperse laterally to occupy the territory.
- Early Flanking War
For most marketing managers, offense and defense are natural strategies. The leader defends, the others attack. In that case, what's new? The flank war. Flanking is the newest way to fight a marketing war, Ries-Trout says. For this type of "marketing war" they propose three principles.
1-A suitable flanking move must be made within an uncontested area
A flanking move does not necessarily require a new product, unlike anything else on the market. However, it must have a certain element of novelty or exclusivity, so that the prospective client places it within a new category. Digital Equipment flanked IBM with a small computer, which customers placed in a new category called "microcomputer," opposite of IBM's "macrocomputer." The success of a flanking attack depends on the ability to create and maintain a separate category. Traditional marketing theory will designate this approach segmentation, the search for segments or niches.
2-Tactical surprise has to be an important element of the plan
The most successful flanking moves are the totally unexpected ones. The greater the surprise, the longer it takes for the leader to react and try to recover. Surprise also often demoralizes the competition. Unfortunately, flank attacks are often downplayed with "test market" actions and over-investigation, revealing the strategy to the competition, Ries-Trout said.
3-The persecution is as critical as the attack itself
"Without persecution," says Clausewitz, "no victory can have great effect." However, too many companies give up after being in the lead, Ries-Trout says. Many companies do not know how to manage success, they use their available resources for marketing to try to recover from previous strategic mistakes. Much time and effort is spent protecting obsolete products and markets, thereby neglecting the reinforcement of success. It is important to use the weight of marketing to get a new product off the ground, before the leader can take cover. What if you don't have the resources to make a successful flanking attack? Perhaps it would not be advisable to launch a flanking attack in the first instance, but to launch a guerrilla war, Ries-Trout suggests.
- Principles of guerilla warfare in marketing
According to Ries-Trout "From China to Cuba and Vietnam, history shows the power of the guerrilla movement." Also in business, the guerrillas have a number of tactical advantages that allow small businesses to prosper in the land of giants. For this type of "war" they propose three principles that can be summarized as follows:
1-Find a market segment small enough to defend it
It could be small geographically, in volume, or in some other aspect difficult to attack by a larger company.
Geography is the traditional way of achieving this goal. In a small city or town it is common to find a department store larger than the Sears, a restaurant larger than McDonald's, a hotel larger than the Holiday Inn. The local retailer tailors the merchandise, food, or services offered to local tastes.
2-No matter how prosperous you become, you must not act as the leader
The day the "guerrilla" company orders a limo for the President of the Council, it begins to collapse. In a large company, half of the employees provide services to others. Some employees go years without bumping into a customer or seeing a competing vendor. Guerrillas must exploit this weakness and place the largest number of their personnel on the main line of battle; They must resist the temptation to integrate formal organization charts, job descriptions, and other attire from large organizations. The reduced guerrilla not only has more forces in the battle itself, but they can also respond more quickly to changes in the market, Ries-Trout said.
3-Be prepared to leave hastily at the breaking news
A company (like a guerrilla) that flees continues to live to fight another time. Ries-Trout, they say that this advice was obtained from pages written by Ernesto "Che" Guevara; don't hesitate to abandon a position or a product if the battle turns against you.
This is where the advantage of being flexible and having a small organization can be exploited. A small company can change things more quickly and efficiently, they conclude.
Ries-Trout conclude their analysis of Clausewitz's “teachings” by commenting on some “wars” in specific industrial sectors, such as the “queue war”, beers, hamburgers, and computers, concluding with the conditions that “the general of marketing ”, among which they point out that it must be: flexible, have courage, be fearless, know the facts, and know the rules.
