Company Introduction, Market Segmentation, and Product Positioning Essay Example for Free

Company Introduction, Market Segmentation, and Product Positioning EssayThe key to fortunate increase implementation in todays national enterprise system is the effective selling of a modernistic harvest-feast with the companys line of existing harvest-homes. As stated by Lacobucci (2012), merchandiseing is defined as an exchange between a company and its customers. The customer wants something from the company or firm and vice versa. In previous times, a company would manufacture a crossing they legal opinion the customer would want or need. The customer purchased that product because of a pending need, which basically meant that commercialise placeing employ to be product oriented. However, commercialiseing today is more that an advertisement for goods and services in an attempt to get out new business. We live in a customer orientated and empowered marketing environment. We realize the brilliance and ramifications of having an exchange with our customers and deve loping a relationship with them. It is this exchange of information between our company and our existing as well as future customers that secures our repose in our target market. Our company is a regional puppet distri only whenor located in the northeastern section of the United States.Our customer base consists of several major(ip) retailers, nationally known in the retail and wholesale peter industry. We used the brand label macabre Steel Tools for marketing and distribution of our products to discuss the implementation of an effective plan to market a new product line, the Illuminated Power Wrench. This paper will analyze market, identify our market segment for common revenue distribution and discuss the reasoning for the segment. Discussing the target market and why the targeted customers were specifically selected.We will do the organise abbreviation describe the ludicrous market position and the expected service provided in meeting the necessitate of the target audi ence. 1. Identify the marketing segment for the product and provide a rationale for this segment. The explanation of a market segment as stated by Lacobucci (2012) is a group of customers that shares similar inclinations towards our brand. To define market segment further for our need, it is an identifiable group of individuals, professionals or organizations that share one or more characteristics or needs in an otherwise homogenous market.In our case, our product will keep back a in truth wide market of consumers and small business owners and employees. Therefore we will need to reduce the market segments to banging chunks. Market segments generally respond in a predictable manner to a marketing or promotion offer. The market segment for the new product will vary widely due to the versatility of our product usage. Our main segment approach will focus on the wholesale distribution to retail vivify supply stores who carry lines of tools for resale to the private and business co nsumer.These market segments will acknowledge businesses such as Lowes and family Depot, retail tool distributors such as Harbor Freight Tools, automobile parts stores such as Advance Auto Parts and tool catalogue companies such as great Northern to bod a few. As we analyze this segment we ask the question if this segment is viable and can we pull ahead from using it. Other ruminations are accessibility and measurability. This segment is small enough to manage our sales and distribution, but large enough to reach the ultimate user of our product.This market segment possesses the emf and versatility to sell and break our product to the target consumer market with a widely diversified audience in the retail industry. The bases for this variance include similar demographics, geographical locations, and psychological make-up of customers and behaviors of users/purchasers. In other words, the customer base for our segments meets the coveted user of our end product. Anyone who bu ilds or enlivens something whether they are a novice or professional is a potential customer.Therefore, by using this method of market segmentation for product distribution, we will successfully sub-divide a large homogenous market into clear identifiable and manageable segments that have similar needs, wants or demand characteristics indicated by Lacobucci (2012). 2. Discuss the target market and provide rationale for this target market. The target market defined is the crabby market segment at which a marketing campaign is focused. As stated earlier, this product has been intentional for the retail tool industry.We have targeted segments in the industry that will be the most successful in reaching the consumer and generating a demand for our product through steady sales. Lacobucci stated the first eyeshot in assessing segments target is to have a view of the segments themselves and the main(a) concern is the segment be profitable. This in call on will become a profitability issue for our company as we keep up to hold a place in the small tool market and generate profits with continued sales.The second perspective examined was if the market or segment fit with who we are. In this case the answer is yes. The ultimate target for this product is the consumer. The greater exposure we have, the higher propensity for sales growth. The illuminated ratchet screw driver is a quality tool for use by not only the novice home self repair person it will also meet the needs of the professional repair person, no matter what the industry.The illuminance system in the handle of the wrench will appeal to the vehicle mechanic working in the close quarters of an engine compartment, the electrician repairing the circuit breaker box, the computer repair technician working in between electronic circuitry as well as to the basic consumer performing handy maintenance projects. This tool will come with the standard wrench lugs and have availability to accessories such as wrenc h tips to raise its versatility to meet the needs of a wider target audience.The wider target audience is customers of our targeted market segments. Therefore the target market is our pathway to the ultimate user of the product is consumer sales. The strategic sales objective of these retail establishments coincides with our strategic slew of reaching the ultimate user of our products, satisfying their needs and increasing the likelihood of additional product sales. 3. behave a SWOT (strengths, weakness, opportunities and treats) for the company.As we move forward in the marketing of our product, we need to our own incorporated strengths. Lacobucci (2012) suggests the use of a SWOT analysis in identifying our strengths, weaknesses, opportunities and threats. The strengths and weaknesses characterise our company in relation to competitors where the opportunities and threats characterize the broader environment such as the tool industry, suppliers, the government and etc. Our str engths are in our track designate in t he tool industry. We have provided quality products at competitive prices.Another perceive strength is in the management of our company. The senior management of Steel City Tools has provided a strategic day-dream with clearly defined attainable goals for market position and sales. However a perceived threat is in the foreign market. A number of tool companys efforts have been over shadowed with a cheaper duplication of products from foreign markets. The US has been plagued with a reduction in the manufacturing industry due to globalized markets, elimination of muckle barriers and outsourcing.The end result is our market segment (distributor) could purchase a similar product cheaper and increase their gross margin and not purchase our product for resale. Another threat we are not prepared to match to is loss of a major distributing customer. With more and more businesses merging, we could lose a distribution source with no warning. One of our weaknesses is we have focused on sales east of the Mississippi, thus limiting market expansion. However, this could be turned around as a future opportunity for market expansion.An easy way to lard our market is to establish a retail division and use infomercials through the cable television interlock to accept mail order/telephone order select product sales such as our new illuminated power wrench. However, a marketing effort of this nature would require careful consideration must be given to the geographical area so as not to alienate our primary segment customers. A move of this nature would require additional capital investment and careful analysis of this type of expansion would be necessary to minimize risk of project failure.The SWOT is useful in clarifying our marketing questions. The key is to address our shortcomings so as not to give the disceptation an velocity hand and not raise concerns with our customers and capitalize on our strengths for continued success. 4 . Create the market position for your product and service. Explain your rationale. Product status, according to the Encyclopedia of telephone line, involves the tailoring the entire marketing program to include product features, distribution, price, quality and service to meet the needs of the consumer within the specific market segment.In this manner, the product positioning is part of the overall market segmentation. Product position takes place in our distributors store, or target market segment and tells us how we can strive most effectively in that market segment against our competition which are also present on display. The key is to understand the consumer perceptions of the product and the marketing behind it. Quality, reliability, affordability, unique features, benefits to the customer is just a few attributes of product positioning.According to Lacobucci (2012) positioning is often about modifying the tetrad Ps of marketing (position, price, place and promotion). In th e case of our company, our reputation is a reflection of the position to provide a quality product at a competitive price while jumper lead the market in innovation. Our company performance is attributed to the quality of our employment staff. Our employees are at the core to our success. We have established core values for our companys work force by creating a verifying work culture with recognition of the whole person concept.The strategic leadership from the top on overpower to the employee fosters productivity with reward and recognition to enhance their performance in support of the company operations to include our marketing efforts. Thus the positive and proactive personality of our company in meeting its marketing objectives is a direct reflection of the quality of every member of the Blue Steel Tool Team. As we continue to grow and develop products for sale, we position our products at a distribution sales point or market segment with the greatest customer exposure for m aximum market penetration.We will service our product to the comfort and benefit of the customer so as not to jeopardize customer confidence as well as the business relationship with our market segment. The product we create and the service we provide are a direct reflection of not only our company, but that of our distributors. Our products are designed to meet the working needs of our professional as well as consumer clientele with a level of quality that meet or exceed expectations at the best value. References Lacobucci, D. (2012) Marketing Management 2012 custom edition.Mason OH Market Segment delimit Retrieved from http//www. businessdictionary. com/definition/market-segment. html Morley R. (2006), Trumpet Print Edition The Death of American Manufacturing, February 2006 Retrieved from http//www. thetrumpet. com/index. php? page=articleid=1955 Reference for Business Product Positioning Encyclopedia of Business, 2nd ed. Retrieved from http//www. referenceforbusiness. com/small /Op-Qu/Product-Positioning. html Target Market Defined retrieved from http//www. businessdictionary. com/definition/target-market. html