Segmentation and Positioning

Segmentation and Positioning - Understanding Markets...

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Understanding Markets Production-oriented managers don’t understand the importance of defining the target  markets.  generic market  is a market with broadly similar needs – and seller offering various  ways of satisfying those needs Product market  is a market with very similar needs and sellers offering various close  substitute ways of satisfying those needs It is sometimes hard to understand and define generic markets because quite different  product types may be able to compete with each other Camera, video camera, postcard etc.  Naming Product-markets and Generic Markets A complete product-market definition includes a 4-part description a.i. a.ii. Customer Needs (to meet what) What functional benefit does it provide?  a.iii. Customer types (for whom) Choose a name that describes all present types of customers Should identify the final customer rather than the buyer Intermediaries should not be seen at the customer type a.iv. Geographic Area (where) the area of competition From this, the manager’s market definition sets the limits of the markets in which the  firm will compete generic market description  does include any  product-type  terms. This emphasizes 
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Segmentation and Positioning - Understanding Markets...

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