ASSIGEMENT - MARKETING FUNDAMENTAL
. Comment on the segmentation and targeting strategy of Ford Mustang.
The third stage of the market segmentation process is the creation of a specific Market mix to fulfill the needs, as well as market conditions of each specific target`` Segment (Wilkie, 1990; Gunter & Furnham, 1992; Kotler, 1994). Although many authors Limit the market segmentation process to market identification rather on the key elements Of the entire process, most companies fail to give due importance to other stages in Market segmentation such as product positioning and mix development (Sarabia, 1996).
Once the firm has chosen a market segment it must choose a generic competitive strategy. At this point it is also necessary to review the selected strategy across segments and explore general strategic approaches. In some cases it might become apparent that a Counter-segmentation strategy is applicable. In other cases, the development of distinct Mixes for each segment uncovers inconsistencies or lack of resources at the corporate Level and so it is necessary to revert to the segment evaluation stage.
According to Kotler (1994, p. 293) the only sustainable generic strategy in a Segmented market is differentiation. He explains that the only other generic competitive strategy alternative (low cost) is not sustainable in a segmented market. In addition, a strategy successful at differentiating must generate customer value, provide perceived value, and be difficult to copy.
At this point in the process the company selects those ways in which it will Distinguish itself from its competitors. In most cases the differentiation involves multiple Elements. In fact, "most successful differentiation strategies involve the total Eureka Facts, the Smart Marketing Information organization, its structure, systems, people, and culture." (Aaker, 1996). One way to Differentiate is through...