Question

For many firms, segmenting, targeting, and positioning are essential aspects of a firm marketing strategy. Effective implementation of the marketer’s understanding of the market may be perceived as a key to firm success.

(i) Explain the rationale behind this process and relate it to the bigger (strategic) marketing picture. What does it mean in terms of the firm’s value chain and strategic orientation? What does it mean in terms of the firm’s resources?

Answer 1

Most of the companies used several strategic measures to match product and services they produce. The rationales behind the selection of these strategies obtain better understanding of market needs and it is completely satisfy them. One of the most important market strategies is segmentation. It is the grouping of customer s on the basis of their different characteristics ad needs. The rationale behind this is that the company can satisfy the needs of segmented customers. This will help the company to attain higher performance. The rationale behind the marketing mixing helps the company to design the products which meet the needs of market, offer at affordable price, sell at convenient location and also set target market through effective promotion will lead to success. Competition can leverage competitive advantage like low cost and better service. The rationale behind the solution strategy will increase the customer satisfaction allowing the company to generate higher revenues and profits.
The value chain of business strategies includes primary and secondary activities. Primary activities consist of actions involved in the creation and distribution of goods and services. The most important primary actions are inbound logistics, operations, outbound logistics, marketing and sales and services. On the other hand, the secondary activities are all actions directly involved in evolution of a product. This includes human resource management, technology and procurement. The firms were act according to the resources available.