Marketing

Discussing the issues

(4) Discuss the differences between the following terms: market segmentation, target marketing, and market positioning.

Answers: Market segmentation means dividing a market into distinct groups of buyers who have distinct needs, characteristics or behavior and who might require separate products or marketing mixes.

Market positioning means arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.

From the definition we know that market segmentation is the company’s masseur to divide the consumer into different groups depends on consumer’s needs, characteristics or behavior and so on. So the consumer in one group has the same needs or characteristics. For example we can distinguish the watch marketing as low quantity low price group, high quantity high price groups and luxuries group in quality and price. Market positioning means the company depends on the different group to design different products and portfolio analysis. If the company treats one group as target consumer they can depend on the group’s needs and characteristics design unique products and portfolio analysis. Besides, we can see that in marketing we may do market segmentation before market positioning.

Application Questions

(1) The product/market expansion grid can be useful in identifying growth opportunities for companies through market penetration, product development, market development, and diversification. Consider a good retailer like Subway, which makes sandwiches and offers chips and drinks. Think creativity to describe four growth opportunities for Subway that fit into each of the four product/market expansion grid cells.

Answers: Subway is a company which provides sandwiches and offers chips and drinks especially for submarine sailors. For market penetration company is a strategy for existing product such as sandwiches and chips. These products can be defined as cash cow...