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Foundations of Marketing - Essay Example
Author : marilouhettinge
Pages 5 (1255 words)
With the ever-intensifying competition in the market, businessmen realised the need to segment the market and use the marketing mix to effectively sell their products. Market segmentation provides them focus in intensifying their marketing campaign to their key buyers. …
Foundations of Marketing
Let us take the above position map to expound on the benefits of positioning a company. Based on the map above both Cadbury and M&Ms should heavily rely on advertisement and other mass promotional schemes to market diversified products that will cater to the different segments in the global market. Their globally known brand names and extensive production capacity brought about by its global chocolate market dominance, they have the edge in doing business on a large scale.
In spite of several advantages of marketing segmentation, there are still visible disadvantages of marketing segmentation. One of these is the possibility of inflexibility with regards to the variations in the market. Even a minimal shift in the number of population or preferences of customers can create marketing problems, which if not addressed immediately can immensely affect the company’s marketing campaign. Another problem of concentrating marketing activities in a single market segment is its difficulty in market expansion. There is a tendency for the firm to be stuck in a single consumer base, which can entail vulnerability to profit loss, especially in the currently dynamic business environment. In short, mass marketing minimises a company’s susceptibility to inflexibility to the ever-changing market. However, the present marketing campaigns of multinationals which are likely to perform this method because of its capitalization on the benefits of economies of scale, involve the localisation and segmentation of their marketing campaign in a particular country. ...