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Posted: February 23rd, 2022
This enables firms to serve customers in the same group more efficiently and successfully (Armstrong & Kotler, 2000 cited in Fang, 2012, p. 41). Furthermore, there are no predetermined rules to segment a market (Armstrong & Kotler, 2000 cited in Fang, 2012, p. 141). There are four common ways to segment a market, and they are geographic segmentation, demographic segmentation, psychographic segmentation and behavioral segmentation. Marketing targeting is the process of analysing dissimilar market segments and selecting the most attractive segments to enter based on the firm’s own capacity (Armstrong & Kotler, 2000; Ennew 1993 cited in Fang, 2012, p. 42). There are four ways to target a market and they are mass-marketing, segmented marketing, focused marketing and customized marketing (Jobber, 2007 cited in Fang, 2012, p. 142). Market positioning is the process of designing and retaining a competitive place for a product or service in the targeted customers’ minds.
A perceptual map helps firms to see how customers view their products and identifies gaps in the market (D’Aveni, 2007, p.
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112). The map also allows firms to predict and counter rival’s tactics (D’Aveni, 2007, p. 120). Moreover, it is crucial for the firm to identify a competitive advantage (Jobber, 2007 cited in Fang, 2012, p. 142). Certain aspects of the firm’s products or services that are regarded as superior compared to its rivals by consumers are known as competitive advantage (Ennew, 1993; Jobber, 2007 ited in Fang, 2012, p. 142). It is also important to have an effective marketing communication to be able to communicate with customers so as to better position their products or service.
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