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

Company Introduction, Market segmentation, and Product Positioning EssayThe cite to victorious crossing implementation in todays national enterprise system is the utilizable marting of a new merchandise with the callers line of alive harvest-homes. As state by Lacobucci (2012), trade is destined 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 intersection point they thought the customer would want or need. The customer purchased that output because of a pending need, which basically meant that food market used to be product oriented. However, marketing today is much that an advertisement for goods and services in an essay to attract new business. We live in a customer orientated and empowered marketing environment. We elucidate the importance and ramifications of having an exchange with our customers and developing a congressship with th em. It is this exchange of information between our company and our existing as well as future customers that secures our gravel in our derriere market. Our company is a regional tool distributor located in the northeastern section of the United States.Our customer dish consists of several(prenominal) major denounceers, nationally kn have got in the sell and wholesale tool industry. We used the brand pit Blue 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 ingredient for gross revenue distribution and discuss the reasoning for the segment. Discussing the manoeuvre market and why the leaded customers were specifically selected.We will do the SWOT analysis describe the unique market position and the expected service provided in conflux the needs of the target audience. 1. Identify the marketing segment for the product and provide a rationale for this segment. The interpretation of a market segment as stated by Lacobucci (2012) is a group of customers that sh atomic number 18s similar inclinations towards our brand. To define market segment further for our needs, 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 have a very wide market of consumers and small business owners and employees. Therefore we will need to reduce the market segments to larger 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 repayable to the versatility of our product usage. Our main segment approach will focus on the wholesale distribution to retail repair supply stores who carry lines of tools for resale to the private and business consumer.These market segments w ill hold businesses such(prenominal)(prenominal) as Lowes and Home Depot, retail tool distributors such as Harbor Freight Tools, automobile parts stores such as Advance Auto Parts and tool catalogue companies such as great northerly to name a few. As we analyze this segment we ask the question if this segment is viable and quite a little we profit from using it. Other considerations 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 potential and versatility to sell and distribute our product to the target consumer market with a widely diversified audience in the retail industry. The bases for this segmentation 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 satiates the desired user of our end product. Anyo ne who builds or repairs 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 look at characteristics indicated by Lacobucci (2012). 2. Discuss the target market and provide rationale for this target market. The target market be is the particular market segment at which a marketing campaign is focused. As stated earlier, this product has been designed 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 view in assessing segments target is to have a view of the segments themselves and the primary concern is the segment be profitable. This in turn will become a profitability issu e for our company as we continue to deal a place in the small tool market and generate profits with continued sales.The secondment 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 number one wood 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 thing what the industry.The illumination system in the handle of the sprain will appeal to the vehicle mechanic operative in the close quarters of an engine compartment, the electrician repairing the circuit breaker box, the computer repair technician on the job(p) in between electronic circuitry as well as to the basic consumer performing handy alimentation projects. This tool will come with the standard wrench lugs and have availability to accessories such as wrench tips to enhance 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 path route to the ultimate user of the product is consumer sales. The strategical sales objective of these retail establishments coincides with our strategic vision of reaching the ultimate user of our products, satisfying their needs and increasing the likelihood of additional product sales. 3. Perform 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 corporate strengths. Lacobucci (2012) suggests the use of a SWOT analysis in identifying our strengths, weaknesses, opportunities and holy terrors. The strengths and weaknesses characterize our company in relation to competitors where the opportunities and threats characterize the broader environment such as the tool industry, supplie rs, the government and etc. Our strengths are in our pencil lead record in t he tool industry. We have provided quality products at competitive prices.another(prenominal) perceived strength is in the management of our company. The senior management of Steel City Tools has provided a strategic vision 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 vague 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 trade 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 ready to react to is loss of a major distributing customer. With more and more businesses merging, we could lose a dis tribution ejaculate 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 expand our market is to establish a retail division and use infomercials through the cable tv set network 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 thorough consideration must be given to the geographical area so as not to change our primary segment customers. A move of this nature would require additional capital investment and scrupulous 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 contention an upper 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 positioning, according to the Encyclopedia of Business, 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 buttocks 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 closely modifying the four Ps of marketing (positi on, price, place and promotion). In the case of our company, our reputation is a considerateness of the position to provide a quality product at a competitive price objet dart leading the market in innovation. Our company performance is attributed to the quality of our employment staff. Our employees are at the loading to our success. We have established core values for our companys work force by creating a positive work culture with recognition of the whole person concept.The strategic leadership from the top on down to the employee fosters productivity with reward and recognition to enhance their performance in support of the company trading 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 maximum market penetration.We will service our product to the satisfaction 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(a) needs of our professional as well as consumer clientele with a level of quality that meet or exceed expectations at the best value. fibres Lacobucci, D. (2012) Marketing Management 2012 custom edition.Mason OH Market Segment define 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. Ret rieved from http//www. referenceforbusiness. com/small/Op-Qu/Product-Positioning. html Target Market Defined retrieved from http//www. businessdictionary. com/definition/target-market. html