"Positioning a New Product or Service" Takeaways

Marketing, as we all know is about providing the needs and wants of the consumers. We all know that, but beneath that progress, there are several processes required to make that possible. The outside market is fierce and competitive, we have to be distinctive among the competitors. One way to be distinctive is to define the market segmentation and to understand the market values. The most important point is to be able to give out a clear message to the customers as to why it is beneficial to buy the product.

The market segmentation process identified by Alexander Hiam and Charles Schewe are definitely my best takeaways from this article: First step, we have to determine the boundaries of the market. In completing this step, a marketer should use a formal business plan to develop a broad definition of the business and then consider the offerings of both direct and indirect competitors to gain information about the basic needs of consumers in the market. Second step, we should decide which variables to use in segmenting the market. Marketers should use their market knowledge to select only relevant variables. Third step, it is about collecting and analyzing data, which involves applying market research tools. The goal in analyzing the data is to identify market segments that are internally homogenous but distinctly heterogeneous with respect to other segments. Fourth step, is to develop detailed profiles of each market segment, which involves selecting those variables that are most closely related to consumers' actual buying behavior. Fifth step, is to decide which segment or segments to serve. In targeting a particular segment, marketers should look for opportunities (that is, customers with unsatisfied wants and needs) that provide a good match for the organization and its resources. It is important that the marketer consider not only the size and potential profitability of a market segment but also whether the venture's skills, technologies, and objective would enable it to meet the needs of that segment better than its competitors. Product positioning, which is the sixth and final step in the market segmentation process, involves developing a product and marketing plan that will appeal to the selected market segment.

To sum up, it all comes down to meeting customer's needs and wants. Being able to correctly identify the target market's attributes and finding what will be most appealing to them. Most importantly, the positioning strategy needs to be applied during the earliest stage of the product design. It is crucial to implement the positioning strategy and fully understand how to get the right attention from your consumers.