...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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...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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...Assume, price of BTP is PB & C&P is PC. There are four situations with different values of PA & PB = (3, 3), (3,4), (4,3) & (4, 4) | 3, 3 | 3,4 | 4,3 | 4,4 | BTP | 125000 | 200000 | 75000 | ? | C&P | 100000 | 25000 | 150000 | ? | TOTAL | 225000 | 225000 | 225000 | ? | At price of (3, 3), the no. of units are distributed as 125000 for BTP and 100000 for C&P. Whenever the price of C&P is increased, the no. of units are reduced to 25000 which means those units are purchased by some people who are brand conscious about C&P. So these people will buy C&P, at whatever the price is. Similarly, when the price of BTC is increased, the no. of units purchased by dedicated customer is 75000. So, at price level (3, 3), out of total 225000 units , (75000+25000) are purchased by loyal customers and rest 100000 nos. are purchased by people mainly concerned about price. Now, after 20% reduction in demand, the demand will be = (225000*0.8) =180000 Out of these 180000 units, loyal customers will purchase 75000 units of BTC & 25000 units of C&P. Now we’ve to find out what will be the distribution of rest 80000 units which will be purchased by price seeking customers. At price level of (3, 3) | Value seeking | Price seeking | % of price seeking of total price seeking | BTC | 75000 | 50000 | 40 % | C&P | 25000 | 75000 | 60 % | So out of these 80000, BTP will be = ( 80000* 40 %) = 32000 C&P will be = (80000...
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...Marketing Segmentation and Product Positioning Marketing Segmentation and Product Positioning According to the author, Dawn Iacobucci of our textbook, Marketing Management, in our society economists say that “imperfect competition exists” meaning that “consumers have unique needs and desires; so collectively, a marketplace of consumers is heterogeneous“ (Iacobucci, 2010, p. 15). This methodology takes into account the distinction and diversity of individuality of the consumers; each consumer has their own different perceptions, experiences, and preferences requiring that different products be produced in order to meet their different segment needs (Iacobucci, 2010). Consumer purchasing is motivated by many different needs ranging from basic biological needs to more intangible and conceptual needs that reflect their personal well-being (Iacobucci, 2010). The strategy used to address customer’s unique differences and Therefore, a market segment is a group of consumers that shares similar inclinations toward your brand (Iacobucci, 2010, p. 16). If marketing were a continuum, the extremes would be “mass marketing” and “one-to-marketing” with “market segmentation” representing the median. The Frat House will utilize a concentration approach marketing strategy, a market segmentation approach whereby a company develops one marketing strategy for a single segment (Ferrell, Hirt, & Ferrell, 2009, p. 371.) It will attempt to cater to the varied taste, needs,...
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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 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 paper...
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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 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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...Unit V Case Study Corey Reed Columbia Southern University BBA 4951, Business Policy and Strategy Professor Don Jernigan, MBA McDonald’s Case Study V McDonald’s perceived product positioning maps in comparison to their corporate strategy do line up to what is expected. There are areas for improvement in relation to their direct competition in every town. In reference to EPS/EBIT, it is relevant to their strategy implementation. McDonald’s product positioning maps do line up with their corporate strategy. Their strategy or motto is “Plan to Win”. When I think of a fast food restaurant winning, I think of winning over the masses of customer traffic. They certainly do this well. What makes up this strategy is; continued growth in the US and abroad, being a sustainable company, new items, new designs of business models, and remaining very competitive (NMINM's University, "n.d."). There is nothing about being the best quality, friendliest customer service, healthiest option, or most comfortable atmosphere. In these categories, I feel that they want to just do better than they have in the past with continued improvements. When you take a look at these product positioning maps, they tend to fall on the lower ends and very conservative in many fields such as atmosphere, quality, healthy choices, and limited choices (NMINM's University, "n.d."). Areas they tend to do better than some of their competition is speed of service, taste, and price (NMINM's University, "n.d."). This...
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...Positioning Strategy: By creating product, service, channel, people and image differentiation Nestle reach the consumer touch point more effectively & efficiently in comparing with their competitors in the highly competitive food processing sector. Product Differentiation: Nestle brings a lot of product for target customers. They provide 25 types of minerals in Nido for children. It also provides Cerelac and Lactogen1 &3 for newly born baby exclusively. Now the doctors prescribe these products for babies to their parents for high nutrition Nescafe is a product which contains 4 types of categories. They offer Nescafe ice for hot weather, classic for all 3 in 1 for those who are busy. They provide Maggi including Maggi instant; Maggi 2 minutes which contain various minerals, vitamins and nutritions.Maggi also provide magi healthy soup and Maggi corn soup but charge the same price. Channel Differentiation: Nestle reach their products to the customers through their expert market salesman and transportation. So that their products are much available to their respective customers. Image differentiation: Nestlé’s logo is totally different from its competitors that are greatly accepted by its customers. For that reason customer easily identify them in the market which is another effective advantage for Nestle. People differentiation: Nestle has a large number of employees that are highly educated and trained. In Bangladesh, 400 employees are working in market Company chairman;...
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...UNIT-IV Product positioning concept Although there are different definitions of Brand Positioning, probably the most common is: identifying a market niche for a brand, product or service utilizing traditional marketing placement strategies (i.e. price, promotion, distribution, packaging,and competition). Also positioning is defined as the way by which the marketers creates impression in the customers mind. Positioning concepts More generally, there are three types of positioning concepts: 1. Functional positions o Solve problems o Provide benefits to customers o Get favorable perception by investors (stock profile) and lenders 2. Symbolic positions o Self-image enhancement o Ego identification o Belongingness and social meaningfulness o Affective fulfillment 3. Experiential positions o Provide sensory stimulation o Provide cognitive stimulation Perceptual mapping Perceptual mapping provides answers to these vital questions: • What is your market position relative to your competitors? • What are your strengths and weaknesses? • Where are there gaps in the market? • How do you measure up to the “ideal?” • What strategies will improve your competitive position so that you are both relevant to the market and differentiated from competitors? The process includes developing the attributes—either functional, emotional, or both. Survey respondents rate the client brand and competitive brands on each of the attributes, and attribute importance and ideal...
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...Product positioning map for McDonald's Submitted by Date of submission Product Positioning map Product positioning with MCD corporate strategy McDonald has perceived product-positioning maps in comparison to their corporate strategy do line up to what is expected. There are areas for improvement in relation to their direct competition in every town. In reference to EPS/EBIT, it is relevant to their strategy implementation. McDonald’s product positioning maps do line up with their corporate strategy. Their strategy or motto is “Plan to win”. When I think of a fast food restaurant winning, I think of winning over the masses of customer traffic. They certainly do this well. What makes up this strategy is; continued growth in the US and abroad, being a sustainable company, new items, new designs of business models, and remaining very competitive . (McDonald's, "n.d."). There is nothing about being the best quality, friendliest customer service, healthiest option, or most comfortable atmosphere. In these categories, I feel that they want to just do better than they have in the past with continued improvements. When you look at these product positioning maps, they tend to fall on the lower ends and very conservative in many fields such as atmosphere, quality, healthy choices, and limited choices (McDonald's, "n.d."). Areas they tend to do better than some of their competition is speed of service, taste, and price (McDonald's, "n.d."). This is in line with sales. These are...
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...be achieved by an appropriate strategy. Positioning which was once the way to go about beating competition is now rejected, since its too static. Rivals can easily copy the market position and competitive advantage. However, that is not entirely true as hypercompetition is a self-inflicted wound. It is important to watch out for what your competitors are doing, but improving operational effectiveness alone is not enough, and that cannot be your only strategy. Operational effectiveness and strategy are both important for superior performance which is what a firm aims for. A company can beat rivals if it can stand out, establish a difference it can preserve. Basically a company can either provide greater value to customers or comparable value at low prices, or both. Delivering greater value means higher unit prices, greater efficiency means lower unit costs. Cost arises from performing activities and cost advantage comes from performing activities more efficiently than your competitors. This can be in the choice of the activity or how the activity is performed. So activities are what creates competitive advantage. Operational effectiveness means performing similar activities better than rivals. Strategic positioning means performing different activities or similar activities in a different way. Productivity frontier is the sum of all existing best practices at a given time. Maximum value a company delivering a particular product can create. Improving operational effectiveness...
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...K&N’s outlets and its head office and had a meeting with marketing manager of K&N’s. The rationale behind visiting the company is to study and evaluate the marketing and positioning strategies of K&N’s products the history and development of the food market. The report starts with the basic history and introduction of the company, its products and competitors it also covers the general information of the market. The information presented in this report has been obtained from the company’s personnel consumers and the market and company’s websites. Group members Sheeba Siddiqui Syed Umer Noman Madiha Fazal Afsheen Raza Abdul Moiz Contents Introduction 3 History: 3 Working Process: 3 PRODUCTS: 4 CURRENT MARKET SITUATION: 4 COMPETITORS 5 Menu foods: 5 Man-o-salwa 5 Pk Foods 5 Dawn foods 5 Competing products 5 Earlier product to satisfy need: 5 Researching Organizational Marketing Positioning: 6 Target Marketing Segments 6 • Working Women: 6 • Kids : 6 • Business class 6 • House wives: 6 Market positioning AND Difference Promoted: 7 • Halal Product: 7 • M.S.G. Free 7 • Vaccinated: 7 • CARBONATE FREE: 7 Non-steroidal growth: 7 POSITIONING STRATEGIES: 8 • Advertisement: 8 • Backward integration: 8 • Recall SHORT expiry products 8 • Fish Free Feed: 9 • Case Study Accepted IN...
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