The model does not apply to products. Competitors can be defined as other firms that are located in the same market category or sell similar products to the same segment of people. The authors also show that defensive marketing (e.g., complaint management) can lower the total marketing expenditure by substantially reducing the cost of offensive marketing (e.g., advertising). Role of service quality in offensive and defensive marketing Get the answers you need, now! If you're not doing that, you're not marketing – it's really that simple. 5. Defensive strategy is defined as a marketing tool that helps companies to retain valuable customers that can be taken away by competitors. It also shows the key marketing activities that occur between those actors. If your small-business has reached a market-leading position, you may need to use such strategies. As a In the service industry, definitions of service quality tend to focus on meeting customers needs and requirements and how well the service delivered meets their expectations (Lewis and Booms 1983). Local banks have since consolidated a decade ago and foreign banks expanding their businesses in local markets have intensified the competition. The Roles of Price, Quality and Value-Added in Industrial Distributor Purchasing Decisions. Marketing is the process of letting consumers know why they should choose your product or service over those of your competitors. The key is to find the right method and to define the right message to educate and influence your consumers. Defensive marketing strategies refer to the actions of a market leader to protect its market share, profitability, product positioning, and mind share against an emerging competitor. International Journal of Service Industry Management, Vol. Malaysia is opening parts of its services to greater foreign participation due to globalisation. The Services Marketing Triangle (or Services Triangle) shows the key actors involved in marketing a service business. There are three broad categories of bank marketing strategy: defensive, offensive and rationalisation strategies. Using service quality data for competitive marketing decisions. Defensive strategies are only used by market leaders in strategic management. 11, No. Offensive strategies attempt to penetrate new areas, expand geographically, seize market opportunities and adopt innovations in order to make the financial service organisation a leader in … Marketing . Defensive Strategies in Strategic Management. Journal of Marketing Channels, Vol. Before we look at the model it is important to note that we are only concerned with the marketing of services. 7, No.