Segmentation vs Differentiation

Question # 2

According to the Saxonville Sausage, companies mostly prefer to use both the marketing strategies which are:

1. Segmentation and Targeting: Segmentation is the method to divide the market into different parts to focus them in a better way and find similarities and dissimilarities to cover up all the factors of the customers (Copulsky and Wolf 16--20). Whereas, market target particular focus the demographic and other characteristics related to the customers is focused.

2. Differentiation and Positioning: Product differentiation strategy defines that companies often use a product differentiation strategy when they have a strength of competitive advantage, such as superior quality or service (Copulsky and Wolf 16--20). Whereas, positioning helps to identify the customer's position by by keeping in mind the relative competing products.

The study represents that Saxonville is a parent company from Ohio, which provide different range of sausages and facing three difficulties such as low growth of products, an an underperformance consequences and lack of positioning. According to this case study, a company needs to understand the consumer behavior and their needs and wants. It is always important for every organization to understand their target market and dividing the segmentation and still have maintained with plenty of business in spite of past economic downturns. The major key problem face in maintaining the strategy is the changing behavior of consumers because of the changing fast-food industry. Beside consumer behavior the problems that organisations face is: speed and Decision Making, Marketing, Advertising and Information Technology. Because of the competition is categorized by many different factors, including location, reputation, different product line, advertising, price, quality, service and credit availability.

The best process to maintain the strategy is to focus on Differentiation and positioning (Perreault J. and Cannon et al.). If...