...Target Market and Positioning Strategy Identification Loretta Menchaca MKT/575 May 11, 2015 Professor Delynn Byars Target Market and Positioning Strategy Identification The environment for the marketing strategy should be set in the atmosphere of the overall corporate strategy. Once the general direction of the organization has been determined with applicable contribution from all required stakeholders, the marketing strategy should be aligned to guarantee that the direction is established (Hooley et al, 2008). Companies that are market-driven display inventive skills in interpreting, collecting, and using information to guide their business and marketing strategies and to achieve competitive advantage (Cravens & Piercy, 2009). The following analysis will focus on Ikea’s target market, the effectiveness of their positioning strategy, and recommended for changes to their targeting and positioning strategy. Ikea Ikea is worldwide home furnishing store that specializes in ready to assemble furniture, home accessories, and appliances. Ingvar Kamprad founded Ikea in 1943, and opened his first store in in Almhult Sweden. Today Ikea operates two hundred twenty six stores globally and hosts four hundred and ten million shoppers a year. Ikea believes in hard work to produce products that meet quality standards at prices that are affordable. These standards are accomplished by building long term relationships with suppliers, investing in highly automated products, and producing...
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...telecommunication or VOIP phone distributor that provides friends and families in the US with an affordable call rate service that allows subscribers to choose from a wide range of service offerings. Additional product features are added for free to ensure customers high service satisfaction. Membership subscription is offered to customers in order to take advantage of the low rates. NetSpeak provides the lowest phone call rate for friends and families to stay in touch. Marketing Objectives * Launch new product on January 1, 2012 to target market, achieving sales target of $250,000 by December 31, 2012. * Increase product awareness among the target audience by 35 percent in one year. * Inform target audience about features and benefits of our product and its competitive advantage, leading to a 15 percent increase in sales in one year. 1. Identify the marketing segment for the product and explain why this segment was selected; The market segment selected for this product was young adults between the ages of 18 to 28. According to Zdnet Research in January 2006, the highest online activity by age group for instant messaging and text messaging were young adults between the ages of 18 to 28. It is believed that this age group spends the most amount of time communicating with each...
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...Assignment #1 Market Segmentation and Product Positioning Firstcup ^ Coffee Shop (Toronto, Canada) Marketing Management Abstract This paper will provide the market research plan for Firstcup Coffee Shop. The store will be located in Toronto, Canada. The objective for the first year of operations is to be selected as the “Best New Coffee Shop” by the local restaurant authorities of the city. Firstcup coffee shop is expected to become a constant necessity for local coffee lovers and active people. It is a place to enjoy while you try to escape from the daily stresses and just a comfortable place to meet your friends, have a conversation, surf the web, or read books and magazines, all in one. Taking into account the growing demand for high quality gourmet coffee and great service in this city, Firstcup will take advantage of a strategic localization in Down Town to build a core group of repeat customers. The following plan will include a report of Firstcup Coffee Shop’s data source implemented, the research approaches used, the research instruments that will be apply to interpret the data, the sampling plan and the contact methods. Furthermore, potential market opportunities and threats have been identified by a SWOT Analysis. All of this information will be absolutely important to continue building an accurate marketing plan for the coffee shop. The results of the plan will be definitely very important...
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...Market segmentation refers to the aggregation of prospective buyers into groups (segments) that have common needs and will respond similarly to a marketing action. It is a form of critical evaluation rather than a prescribed process or system that enables companies to target different categories of consumers who perceive the full value of certain products and services differently from one another. Segmentation divides a market into distinct groups with distinct needs, characteristics, and/or behaviors. Effective segmentation must be measurable, accessible, substantial, differentiable and actionable. There are four segmentation bases that must be considered when aggregating prospective buyers: Geographic, Demographic, Psychographic and Behavioral. Geographic refers to the physical location of the market segment, country, state, city, and neighborhood. Demographic refers to their age, gender, education, occupation, religion, race, nationality and income. Psychographic attempts to identify personality based and/or lifestyle based decisions, while behavior delves into and identifies the key benefits sought, user status, user rates and loyalty of the market segment. Targeting refers to a set of buyers sharing a common needs or characteristics that a company decides to serve. Targeting is utilized to measure segment attractiveness and select target segments. Size and growth, company objectives and resources, and structural attractiveness are used evaluate segment attractiveness. Different...
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...paper on a company of your choice and discuss the market segmentation within that industry along with the target market for the company and the selection process for that target market. Required Elements: * No more than 2100 words * Include demographic, psychographic, geographic, and behavioral characteristics for the selected company. * A positioning statement for the company with careful consideration of their brand and strategy * Paper is consistent with APA guidelines. http://wps.pearsoned.co.uk/ema_uk_he_kotler_euromm_1/126/32286/8265285.cw/content/index.html I. Introduction BMW stands for Bayerische Motoren Werke AG, translated means Bavarian Motor Works (BMW). It was founded by Karl Rapp and Gustav Otto. In 1916, the Flugmaschinenefabrik Gustav Otto Company merged into Bayerische Flugzeug-Werke AG (BFW). In 1917, the Rapp Motorenwerke Company merged with Bayerische Motoren Werke. In 1922, BMW AG transferred engine construction operations, company name and brand names to BFW. March 6, 1916 is known as the birth date of Bayerische Motoren Werke AG (BMW) (“Bmw Group”, 2014). BMW is synonymous for luxury, the ultimate driving machine. In the past BMW only targeted the elite, wealthy, successful businessman. BMW has stepped out of the box to target other segments of the market to increase profits and gain an even bigger share of the industry. II. Market segmentation within the industry The market segmentation within the automobile industry that...
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...CHAPTER 8 Market Segmentation, Targeting, and Positioning CHAPTER OVERVIEW Chapter 8 shows different approaches that companies can take to a market in order to best serve customer and company needs. It begins with a brief overview of three marketing approaches that companies can take: mass marketing, product-variety marketing, and target marketing. A fuller discussion details the three steps of target marketing, beginning with market segmentation: dividing a market into groups that is measurable, accessible, substantial, and actionable. This can be done in different ways by using geographic, demographic, psychographic, behavioral, or other variables. Next, the process of market targeting and the different approaches a company can take are discussed. These include undifferentiated, differentiated, and concentrated marketing. The chapter concludes by covering market positioning strategy and how companies can position their products for the best competitive advantage. CHAPTER OBJECTIVES Students should be able to: 1. Explain market segmentation, and identify several possible bases for segmenting consumer markets, business markets, and international markets. 2. List and distinguish among the requirements for effective segmentation: measurability, accessibility, substantiality, and actionability. 3. Outline the process of evaluating market segments, and suggests some methods for selecting market segments. 4. Illustrate the concept of...
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...Market Segmentation and Product Positioning Market segmentation is the identification of portions of the market that are different from one another. Segmentation allows the firm to better satisfy the needs of its potential customer. Market segmentation also involves dividing a particular market into groups of individual markets with similar wants and needs. Market segmentation can allow a company to identify groups of similar consumers or potential consumers. It can allow a company to pin point different types of consumer behavior in regards to particular products of that company. Due to market segmentation, the company will be able to respond with appropriate marketing strategies that satisfy the different preferences of each chosen segment. Market segmentation can be used in different markets, such as industrial markets and consumer markets. According to NetMBA.com, industrial markets commonly use market segmentation to segment their different markets according to “1.) Location 2.) Company type and 3.) Behavioral characteristics” (www.netmba.com). In relation as to why industrial markets would use location as a segment would be due to shipping factors for the vendor. It is important for vendors for companies to be geographically positioned near the customers due to “shipping costs may be a purchase factor for vendor selection for products having a high bulk to value ratio” (www.netmba.com). Industrial markets would use company...
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...Company Introduction, Market Segmentation, and Product Positioning Professor: Gary Smith Sonya R. Byrd April 28, 2013 We are a family owned and operated, full service lawn care and grounds keeping company based out of Raleigh, North Carolina. We pride ourselves in professionalism, quality and affordability. With over 20 years of experience serving the Triangle, we eagerly seek to perform above and beyond other turf care providers. “We started mowing lawns with one philosophy and mission in mind: provide consistent, superior service while building lasting relationships within our community.” The services we offer are as follows: Mowing, Edging, Blowing, 6-Step Fertilizing Program, Aeration, and Over-Seeding, Sod Installation, Liming and Soil Conditioning, Lawn Weed Control and Disease Control, Tree an Shrub Trimming and Pruning, Mulch and Pine Straw, Landscape Design & Installation, Tree and Shrub Care, Insect and pest Control and Fall Leaf Removal, Drainage Installation, Commercial Services, Landscape Edging, Athletic Field Care, Artificial Turf Installation, Custom Stone Work, Patio Pavers, Landscape Lighting, Backyard Water Features, Debris Haul Away, Pressure Washing, Holliday Lighting, Retaining Wall, Sprinkler System, Snow and Ice Management and more. As a student at North Carolina State University studying Turf Grass Science, and graduating 1998 Magna Cum Laude, I’ve grown even more passionate about lawn care and enjoy learning about the constantly growing...
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...MARKET POSITIONING FOR ICEBERG VODKA EXECUTIVESUMMARY: In this report we seek to help the company, Iceberg find their market positioning for their foray into China, particularly entering the Beijing market. We conducted an assessment of the Beijing vodka market potential, the main competitors, distribution channels, relative price analysis and conducted our own market research by means of a survey. Our research revealed that Chinese consumers are generally brand conscious and have penchant for high end purchasing. We identified four main competitors: Absolut, Stolichnaya, Smirnoff and Finlandia where Absolut holds the lion portion of the market by positioning itself as “the choice” for young, urban professional. With that, we recommend positioning Iceberg as the ‘affordable premium’ and making ‘Iceberg’ the ‘Evian’ in the vodka market by charging the “right” price, to the “ideal” consumer, at the “right” time, the “right” place. TABLE OF CONTENTS: 1. Introduction : Background and Opportunity 1.1. Alcoholic Drinks in China - A Market Analysis 3 1.2. The Vodka Market in China 3 1.3. Iceberg - Company and Product Overview 4 2. Market Research Methodology 2.1. Overview 5 2.2. Survey 5 3. Analysis 3.1. Main Competitors in the Vodka Market in Beijing 6 3.2. Market Share Analysis 6 3.3. Distribution Channels Analysis 7 3.3.1. Supermarkets 7 3.3.2. Online Delivery 8 3.3.3. Retail Liquor Stores 8 3.3.4. Watering Holes 8 3.4....
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...PART I. PRODUCT POSITIONING AND MARKET SEGMENTATION One of the major activities in marketing research entails the dual problem of product positioning and market segmentation. Positioning and segmentation are two sides of the same coin. In product positioning, our aim is to provide our product or service with features that will appeal to various potential buyers. However, our product’s appeal takes place in the context of other suppliers’ features and appeals. Segmentation of markets is the counterpoint of product positioning. We try to match products to market segments and, occasionally, also to develop new segments – again in the context of competitors’ similar pursuits. Part I consists of four chapters. Each of these chapters describes actual cases entailing target market positioning and new segment development. We describe the use of conjoint analysis (and related techniques) in target marketing positioning, line extending, and segmentation, including the case of dynamic modeling where competitors engage in action and reaction sequences over time. CHAPTER I. TARGET MARKET POSITIONING Few marketers would dispute the central roles that product positioning and market segmentation play in today’s economies, national or global. Vignette 1 focuses on various extensions of product positioning strategy. In this case our (disguised) firm is the Epsilon Company. Epsilon is a key player in the consumer credit card industry. Competition in credit...
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...Market Segmentation and Product Positioning Assignment One January 18, 2011 Abstract The key to successful product implementation in today’s national enterprise system is the effective marketing of a new product with the company’s line of existing products. As stated by Iacobucci (2010) (p.3), marketing is defined as an exchange between a company and its customers. In simple terms, the customer wants something from the company or firm and vice versa. In previous times, a company would manufacture a product they thought the customer would want and/or need. The customer purchased that product because of a pending need which basically meant that marketing used to be product oriented. However, marketing today is more that an advertisement for goods and services in an attempt to attract new business. We live in a customer orientated and empowered marketing environment (p.5). We realize the importance and ramifications of having an exchange with our customers and developing a relationship with them. It is this exchange of information between our company and our existing as well as future customers that secures our position in our target market. Our company is a regional tool distributor located in the north eastern section of the United States. Our customer base consists of several major retailers, nationally known in the retail and wholesale tool industry. We use the brand label Steel City Tools for marketing and distribution of our products. This research...
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...Assignment 1: Market Segmentation and Product Positioning Fabio Micheletto Instructor: Dr. Jean Gordon MKT500 – Marketing Management 10/23/2011 Assignment 1: Market Segmentation and Product Positioning 1. Identify the marketing segment for the product and explain why this segment was selected. 2.1 Company Description WestportAxle Corporation is an U.S. based company with its headquarters in Brazil that focuses in manufacturing and assembly front axles for truck and buses (heavy and light duty). One of the products that WestportAxle plans to introduce in the U.S. market is the new 24K front axle for Trucks Class 8 Fire/Crash (picture 1). Company expects to use its 25 years of expertise to bring new alternatives for the Class 8 Truck builders offering a new product with better maneuverability that can be used in the narrow streets of big cities. Picture 1 – 24K Front Axle 2.2 Market Segment In the front axle business there is a specific market that we call “Niche Market”. This market is dedicated to special vehicle builders such as Fire Trucks, Garbage Trucks, Cement Mixers and so on. These trucks are common identified as “Class 8 Trucks”. The 24K front axle is largely used for these trucks, however there are some limitations. And one of these limitations is the maneuverability of the vehicle, sometimes is really difficult to maneuver the truck in the narrow streets. So, our product will fill this gap offering a 55 degrees wheel cut (the...
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...GE’S TARGET MARKET AND POSITIONING GE’s target markets are governments, healthcare institutions, schools universities and other businesses like airlines, oil and energy manufacturing companies, governments and the ultimate consumer (B2C). The B2C products like small and large appliances is targeted to all consumer groups regardless of income, age, household size education or ethnic background or psychographic and behavioral background. The B2B products, in demographic terms (customer-based segmentation) are intended to suit specific organizational markets – a broad business segment, governments’ and countries’ infrastructural development projects in over 120 countries. All demographic groups will use our healthcare equipment sold to a hospitals and other institutions. GE is a conglomerate; our size is an asset, our Brand a household name with a competitive advantage that we should use to position ourselves in sub-Saharan Africa. This is an opportunity, since these emerging young -fairly stable- democracies are experiencing an astounding growth. Tanzania, Angola, Nigeria, Mozambique are some of the countries identified, and GE is well positioned to compete for infrastructural projects, manufacturing equipment and financial services. GE is a brand well recognized around the world, and well perceived in all segments of our target markets, unique, with the competitive advantage to compete and attain both our immediate and long-term goals. PRODUCT STRATEGIES Our products, the...
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...Market Segmentation and Product Positioning Juan Snowden 18 July 2010 Market Segmentation The purpose of this market plan is to serve as a living and dynamic guide for the operation of Grey Matter Solutions, LLC. Grey Matter Solutions, LLC is a single location home-based engineering and information technology business offering strategic technical and program management solutions. It is the owner’s intention to expand the business so that it becomes a solid, highly-profitable venture and the operation can be supported year around. The main purpose of Grey Matter Solutions, LLC is to offer a wide range of engineering and information technology services that will meet the needs and offer solutions for individuals, business and government clients. Grey Matter Solutions, LLC will not only collect and process information, but will seek to education its clients at the same time so that the best strategies are employed at all times. Mission Statement Grey Matter Solutions, LLC is a full-service engineering and information technology services business located in Anne Arundel County, MD. The business provides engineering, systems analysis, systems integration and technical services for governmental agencies, and at the federal, state and local levels throughout the United States. From program process improvements, program management to onsite and hands-on engineering consulting, Grey Matter Solutions is committed to being your one-stop quality service meeting all...
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...In marketing, positioning has come to mean the process by which marketers try to create an image or identity in the minds of their target market for its product, brand, or organization. Brand positioning process Effective Brand Positioning is contingent upon identifying and communicating a brand's uniqueness, differentiation and verifiable value. It is important to note that "me too" brand positioning contradicts the notion of differentiation and should be avoided at all costs. This type of copycat brand positioning only works if the business offers its solutions at a significant discount over the other competitor(s). Generally, the brand positioning process involves: Identifying the business's direct competition (could include tertiary players that offer your product/service amongst a larger portfolio of solutions) Understanding how each competitor is positioning their business today (e.g. claiming to be the fastest, cheapest, largest, the #1 provider, etc.) Documenting the provider's own positioning as it exists today (may not exist if startup business) Comparing the company's positioning to its competitors' to identify viable areas for differentiation Developing a distinctive, differentiating and value-based brand positioning statement, key messages and customer value propositions. Product positioning process Generally, the product positioning process involves: Defining the market in which the product or brand will compete (who...
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