Market Segmentation and Product Positioning

In: Business and Management

Submitted By gh001
Words 419
Pages 2
One of the major activities in marketing research entails the dual problem of product positioning and market segmentation. Positioning and segmentation are two sides of the same coin. In product positioning, our aim is to provide our product or service with features that will appeal to various potential buyers. However, our product’s appeal takes place in the context of other suppliers’ features and appeals.
Segmentation of markets is the counterpoint of product positioning. We try to match products to market segments and, occasionally, also to develop new segments – again in the context of competitors’ similar pursuits.
Part I consists of four chapters. Each of these chapters describes actual cases entailing target market positioning and new segment development. We describe the use of conjoint analysis (and related techniques) in target marketing positioning, line extending, and segmentation, including the case of dynamic modeling where competitors engage in action and reaction sequences over time.

Few marketers would dispute the central roles that product positioning and market segmentation play in today’s economies, national or global. Vignette 1 focuses on various extensions of product positioning strategy. In this case our (disguised) firm is the Epsilon
Company. Epsilon is a key player in the consumer credit card industry.
Competition in credit cards is both fierce and unrelenting. Relatively new features, such as cash-back bonuses, are the order of the day and card usage is being extended to fast foods, movies, and even toll booths. In addition to Epsilon (a relatively small player), there are Alpha,
Beta, Gamma, and Delta. Alpha and Gamma are the giants in the field, with 28% and 45% shares, respectively. In contrast,…...

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