ABSTRACT

This chapter explores strategy principles and identifies how time-honored military concepts of strategy can strengthen one's marketing campaigns. It discusses the basic strategy principles of speed, indirect approach, concentration, alternated objectives, and unbalancing competition. Envelopment strategy consists of two stages. First, as in the indirect attack, the attacker focuses on a specific market segment for a point of entry. Then, by identifying additional market segments and adding new products, the attacker uses an expansion strategy to envelop the entire market. The five strategy principles- speed, indirect approach, concentration, alternative objectives, and unbalancing the competition — derived from military history characterize all types of strategies. The chapter focuses those strategy principles into three fundamental components of business strategy: indirect approach, differentiation, and concentration. The most effective means of applying the indirect approach is to seek differentiation in the areas of the marketing mix.