This strategic decision, mostly executed by small organisation with a limited resource arsenal, tries to gain customer awareness and to improve the business image. Furthermore, it gives an insight in four different marketing warfare strategy principles and highlights the specific term of guerrilla marketing strategy practice regarding entrepreneurial decisions, focused on small and medium-sized enterprises. 2.3.4 Word-of-mouth Communication In a study by Pickton and Broderick (2001) the literally meaning of word-of-mouth communications are the conversations held between the receivers, whether or not all members received the original marketing communication (p.738). A good flanking move must be made into an uncontested area. The velocity and surprise effects of guerrilla marketing can boost awareness and interest to the customer. Main focus should be on cooperation with the customer and other businesses in order to satisfy the consumer needs. In the following, literature review introduces guerrilla marketing as a metaphor of warfare.
Guerrilla Marketing Types, there are several kinds of guerrilla marketing. Guerrilla is the diminutive word for war (implicating small war) and was firstly used to describe the Spanish-Portuguese irregulars, who helped to drive the French from the Iberian Peninsula in the early 19th century. In addition, long-term business relations and customer loyalty instead of short-term contract conclusions, should be the basis for a substantiate guerrilla B2C organisation. Furthermore, high-traffic spots like clubs, pubs or sport events can be used optimally to target a young audience. Marketing warfare strategies are according to Ries and Trout (1986) strategies that try to draw parallels to marketing and warfare; focusing on analogies between military strategies and marketing strategies, in todays business situations. Guerrilla marketing stands for focusing on conventional goals such as profit or growth, but doing it by using exceptional promotional approaches, like advertising in yellow pages, wild postings or non-traditional outdoor advertising media vehicles.
The guerrilla marketing benefits and principles, according to the above mentioned authors are mostly focused on the adoption of SMEs, although large enterprises also use approaches of guerrilla marketing to penetrate the market and create awareness through differentiated advertising. Literature Review.1 Marketing Warfare Strategy.2 The Term Guerrilla.3 Guerrilla Marketing.3.1 Guerrilla Marketing Benefits.3.2 Guerrilla Marketing Principles.3.3 Non-traditional Guerrilla Advertising Methods.3.4 Word-of-mouth Communication.4 SME (Small and Medium-sized Enterprise).5 Guerrilla Marketing Relevance to SMEs. In the 1980s business strategists like Ries and Trout (1986 as well as Philip Kotler (1980) adopted strategic military theories from books of Sun Tzu, The Art of War (translated 1910 or Carl von Clausewitzs (1832) book. To reciprocate the competitors attacks till the market position is assured, is the main objective in developing a defensive tactic. In addition, this could involve new product introduction, repositioning of existing goods or subtle promotional activities in market niches. The conclusion of this dissertation combined with a comparison between theory and practice highlight the last section of this research study.
Especially small and medium-sized enterprises are having greater internal limitations regarding a restricted budget for marketing communications and facing bigger external uncertainties than large organisation. Guerrilla approaches are mostly inexpensive and simple to implement and execute, with a focus on innovative actions to communicate with the audiences. Distribution niches with flexibility and innovation in changing and eliminating tactics and approaches. Comparison between Theory and Practice. The use of this tactic is not designed for all types of goods and services, and it is often used for more "edgy" products and to target younger consumers who are more likely to respond positively. The tactics used by guerrillas involve frequent shifts of attacks, a high mobility and flexibility. The organisation, which is in the defending position, has to defend all of their barriers (markets therefore, an attacking business can concentrate their power at a simple place (product or niche market). Figure 4: SME Threshold, figure 5: Blair Witch Project, figure 6: Gossard. Guerrilla marketers are forced to find ways to promote their business and their product or service opportunities at all times,.g.
Figure 7: McDonalds, figure 8 9: Horror Bookstore. The offensive marketing warfare strategy is used when businesses are focusing on the leader in the market. 2.3 Guerrilla Marketing The unprecedented fragmentation in the traditional media challenge organisations to implement the utilisation of unexpected, creative and in-your-face messaging guerrilla marketing tactics to gain high impact at a low-cost level (m). Competition and market share are rather secondary objectives. Figure 10: VIP Gym, figure 11 12: eBay, figure 13: m Figure 14: World aids Day Figure 15: Ola Figure 16: Enterprise Category (Size of the SME) Figure 17: SME Turnover 2005 Figure 18: SME Industry Operation Figure 19: Guerrilla Marketing.
In addition, people talk and forward interesting messages much faster than via traditional media vehicles. This aggressive marketing approach is characterised by creative and legal attacks targeted on competitors in order to maintain or increase awareness and impact to the customer. Some examples include: Guerrilla Marketing Mistakes, with the risks inherent to guerrilla marketing, and the sometimes uncharted territory it travels in, there are a number of examples of campaigns gone awry. Guerrilla marketing tactics concentrate on a particular market segment, which makes it more appropriate to design specific operations to reach the target market or target audience. Furthermore, the time span of the strategic attack should be as surprising and as fast as possible to reduce the reaction time of the competitor. The signs created a bomb scare and cost Turner Broadcasting (the network's parent) 2 million in fines.
Figure 2: Guerrilla Marketing by Giovanni FCB Agency illustration not visible in this excerpt The Brazilian advertising agency Giovanni FCB used guerrilla marketing to promote Disneys new movie Agua Negra (Dark Water) in 2005. He pointed out that the difference between small and large firms are basically: - Small businesses have greater external uncertainties concerning the environment and greater internal consistencies of its motivations and actions ; - Small firm have a bigger role. Key Takeaways, guerrilla marketing is the creating use of novel or unconventional methods in order to boost sales or attract interest in a brand or business. It was coined by Jay Conrad Levinson in his 1984 book. Offensive tactics are concerned with attacking the weaknesses of the leader as effective as possible,.g.
Thus, marketing campaigns have to become profitable for an enterprise. The guerrilla marketing warfare strategy refers to the reservoir of tactical advantages, which small companies have in comparison to larger companies. Levinson points out three different approaches, firstly, that customers are increasingly attracted by small enterprises and furthermore that these businesses can use guerrilla marketing more effectively because of its size, organisational structure and niche market presence; guerrilla marketing is flexible. This marketing method has increased in popularity with the rise of ubiquitous mobile and connected technologies that can amplify messaging and focus on target groups of consumers. The strategy is created to obtain objectives like market share or key customer from the targeted competitor. Guerrilla marketing matters more than before to small organisations but it is as well, more and more adopted in larger companies to create buzz. Marketing, seen as a metaphor of war, opens up new way of thinking about marketing and market research.
The next paragraph is concerned with the term SME (small and medium-sized enterprise followed by an analysis of the relevance to apply guerrilla marketing strategies. These main principles are directions in which organisations can operate by executing their aggressive or defensive types of marketing tools. Ries and Trout (1986 as well as Levinson (1984) mentioned that guerrilla marketing activities mostly affect small and medium-scaled organisations because they are more likely to serve market niches than the big players in the market. Findings and Analysis. One key element of guerrilla marketing is choosing the right time and place to conduct a campaign so as to avoid potential legal issues. Further Areas of Research. SMEs should never assume the leadership, no matter how successful they become ; a lean organisational structure of the guerrilla marketing implementing organisation is essential.