2 Differentiation The company focuses on differentiating their product line to

2 differentiation the company focuses on

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2. Differentiation: The company focuses on differentiating their product line to reflect high quality products or services. Involves making products and/or services seem more attractive and worth the slightly higher prices in comparison to competitors. 3. Focus: The company focuses on marketing unique products to a particularly niche market. The products or services are specially crafted and aimed towards being sold to specific market segments. 4. Middle-of-the-Road : A losing strategy for company’s according to Porter because here the company does not perform a clear strategy. Companies that follow this strategy try to implement all the previous positioning strategies –low cost, different, and focused, yet end up being best at none. I think differentiation best explains Target’s original positioning of “better stuff for slightly higher prices” because Target has always aimed to provide its customers with unique and better quality products at slightly higher prices. They do not compete for the lowest prices like their competitor Walmart, nor are they marketing certain products to specific market segments. They have all the products that Walmart has, with more style and flare, making their slightly higher prices seem worth it to customers.
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Question 5 (20 marks) A competitor-centred company is one that allocates most of its time in analyzing what its competitors are doing, and developing strategies in reaction accordingly. These companies do thorough investigation of its competitors’ strengths and weaknesses, and then develop strategies that will make them the better choice. A customer-centred company is one that focuses on developing strategies after seeing the response of its customers. These companies analyze and understand the needs of their customers, and accordingly decide what strategies or changes will better cater to the customers in satisfying those needs. Companies that are customer-centred prioritize their customers over their competitors, and are constantly looking for ways to deliver ultimate value to the buyers. I think Target is a market-centred company because it understands and reacts to both its competitors and customers. Before the recession hit, Target focused on attracting customers to the idea that despite the slightly higher prices, its products were more stylish and fashionable; it didn’t care much that Walmart was also providing similar items and lower prices. Target was developing strategies to satisfy the needs of its customers by selling up-to-date, trendy items, which made it slightly more customer oriented at the time. However, when the recession hit, and Target saw that it was losing all of its customers to Walmart, it had to quickly develop marketing strategies that would lower prices, all while continuing to focus on what the customers wants. In the end, Target ended up becoming market-oriented because it was
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