4ps and How the Firm Position Their Products for Maximum Competitive Advantage in the Marketplace

Topics: Marketing, Product differentiation, Pricing Pages: 5 (1455 words) Published: September 24, 2011
Companies today recognize that they cannot appeal to all buyers in the marketplace, or at least not to all buyers in the same way. The reason are follow: 1. There are too many buyers, too widely scattered and too varied in their needs. 2. There are so many competitiors which focus on their connected customer. 3. Most companies have identifying market segments, selecting one or more of them, and developing products and marketing programs tailored to each.

If the company wants to focus their target marketing, they must follow the three major steps: 1. Market segmentation, which is dividing a market into distinct groups of buyers with different needs characteristics, or behaviour who might require separate products or marketing mixes. 2. Market targeting, which is evaluating each market segment’s attractiveess and selectingone or more of the market segments to enter. 3. Market positioning, which is setting the competitive positioning for a product and creating a detailed marketing mix.

Market Segmentation
Markets consist of buyers, and buyers differ in some respects. They may differ in their wants, income, psychographic, geographical, personality, demograhical and gender. *Geographic segmentation: it calls for dividing the market into different geographical units such sa nations, states, regions, counties or cities. The company can decide to operate in one or more geographic areas or operate in all but pay attention to local variations in geographic needs and preferwnces. * Psychographic segmentation: in psychographic segmentation, buyers are divided into different groups on the basis of social class or lifestyle. People within the samedemographic group can exhibt very fifferent psychographic profiles. *Income: income segmentation is another longstanding practice in such product and service categories as automobiles, clothing, boats and travel. However, income does not always predict the best customers for a given product. *Demographic segmentation: the market is grouped by age, gender, family size, family life cycle, education, nationality, etc. Since there is a relationship between these factors and the consumer needs and wants, this method is the more popular bases for segmenting customer.

Selecting Market Segments
After evaluating different segments, the company hopes to find one or more market segments worth entering. It must engage in target-market selection. The firm adopt one of three market-coverage strategies: a. Undifferentiated marketing is a market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with. b. Differentiated marketing is a market-coverage strategy in which a firm decides target several market segments and designs a separate offer for each. c. Concentrated marketing is a market-coverage strategy in which a firm goes after a large share of one or a few submarkets.

How this firm has implemented to reach its identified target markets So, in this case, the corporation whicih in the personal healthcare industry must know their marketing positioning. Different people have different needs, the firm must know which person is fit their products by make the survy. For example, if the company produce a skin cream, they should be focus on female consumers for their need to buy someone products to keep the skin smooth. If the product price is high, the firm canot introduce to the person which get low-income, so the high-income customer is the ideal sales target. Meamwhile, the firm which in the personal healthcare industry should analyse their marketing environment------which level customers are ignored by their competitiors and which field competitior has a big advantage. For the ignored customers, the firm should design a spcial product to satisfy their needs and keep in touch with them. On the other hand, this company should operate in one or a few...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • How Companies Can Position Their Products for Competitive Advantage in the Essay
  • Competitive Advantage Essay
  • Essay on Innovation for the Competitive Position of a Firm
  • Competitive advantages Essay
  • How Products Are Developed to Sustain Competitive Advantage Essay
  • Essay about How Products Are Developed to Sustain Competitive Advantage in Adidas Company:
  • Explain the Strategies for Competitive Advantage. Essay
  • Resilience:Continuous Renewal of Competitive Advantages Essay

Become a StudyMode Member

Sign Up - It's Free