Question

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

(ii) What is necessary for this strategic process to be effective from the perspective of both the firm and the consumer? How does it support the goals of the market-oriented firm?

(iii) How does effective positioning create customer value? Explain using examples.

Answer 1

ii)In the planning process of marketing ,the three steps of segmentation,targeting and positioning are important in order to identify and select buyers and to get product benefits in the market. Segmentation classifies customers on the basis of demography, geographical location and behaviour.Trageting implies marketing to a particular group of customers and positioning is creating a brand image in the minds of the customer.Segmentation makes use of the firm's finite resources with the help of buyer based marketing.Targeting attracts the right customer and the firm benefits from increase in sales.This marketing strategy reduces the risk in making decision when , where , how and to whom the product will be marketed.  The firm can retain its customers through this strategy.The efficiency of the market increases as goods are marketed to the proper segment .The firm gains as the cost of the firm gets reduced as the firms do not market the product where it is not required.The firm gains and customers are satisfied and happy.

It supports the goals of the market oriented firm ie maximising sales and increasing profit through the framework of segmentation ,targeting and positioning.The firm grows by segmenting the target market ,targeting the right customers as well as positioning the product in the market place ,

iii)The ability to influence the insight of the consumers is known as market positioning . It is possible for a company to achieve competitive advantage over its competitors with its brand.Positioning tries to create brand identity of a product . Creating a brand image helps in understanding the product and the value of the product.There are different positioning strategies like, product price , product quality, different positive characteristics of the product etc.As for eg A restaurant which sells fast food may claim itself to provide cheap food than other restaurants.