Segmentation, Targeting and Positioning

Segmentation, Targeting and Positioning

Segmentation, Targeting and Positioning

Introduction

The process of segmentation, targeting and positioning for a product and service plays a vital role in marketing. It provides an understanding of the customers, their common behavior and enables a company to priorities the segments which are feasible to be targeted by the company. The process of segmentation involves dividing the whole market into pieces by evaluating the characteristics of the customers and their need. Targeting comprises of the activities which carry out analysis of the companies own capabilities for entering a market and analysis of competitors capabilities. Positioning is the process of differentiating the placement of product in the mind of the customers. In this process an image and perception is developed in the mind of the customers which tempts the customer to differentiate the product from competitor products. In our report we will review the macro and micro factors of environment which influence the marketing decision. We will develop segments for customers and will develop marketing mix for that segment. We will then target the attractive segments for our products and will devise strategies for the same. The effect of consumer behavior on marketing activities will be reviewed in this report. A single product will be selected and reposition strategies will be applied to it.

Discussion

Effect of Environmental Factors on Marketing Decisions

Micro Environmental Factors

Micro factors are those factors which are very close to the company and affect the company directly. These include the internal departments and issues of the company itself, the suppliers of the company, the marketing intermediaries, and markets of consumers, general public and the competitors of the firm. The company must address challenges faced internally by communicating the marketing plan to the department and carryout internal marketing to bring everyone on board. If the company itself is not capable to support its marketing objectives then it will be counterproductive. The suppliers have a very big role in the success of the company. Sony Ericsson partnership was result of loss of the primary chip supplier to Ericson which compelled Ericson to have a joint venture with Sony (Norman & Jansson, 2004, pp 434-456). The Kmart retail stores (Sears) are not doing well in sales and had a very bad previous Christmas season. Analyst concluded that one of the reasons Kmart has weathered the sales problems are due to the credit support by the suppliers (Munarriz, 2011). The distributors play a vital role and influence the marketing activities as they are the medium of selling, ensuring availability and market intelligence. Strategies which the competitors make have a direct effect on the marketing efforts of the company. It can either create the opportunity or develop a threat for the company. The public opinion and their behavior shapes the marketing activities and a change in their preferences will force to company to revisit its marketing decisions.

Macro Environmental Factors

The macro environment is related to the forces which constitute the larger society and it affects the microenvironment which results in the consequences ...