This section has the following topics:

  • Segmentation
  • Targeting
  • Positioning
  • Relationship marketing

I will dicuss these in more detail when I update this post later.

One of the best ways of looking at segmentation, targeting and positionign is using the model called “Porter’s Generic Strategies”. It goes as follows:

Choose to have a broad or narrow target market. The narrow target market is a niche, where the target market is small and there are few or no competitors.

Within the broad option, you to be either Low Cost or Differentiated to be successful. Low Cost means you have low or adequate quality. Being differentiated means offering a unique product or service with high quality and a premium price.

Another model, by Traecy, says you choose between three strategies, with examples that were givenf or each.

  • Offer the best product (Sony)
  • Have the best price (McDonald’s)
  • Offer the best customer service (Virgin)

One could say that products are easy to imitate and there is always someone in another country who can make it cheaper than you. But it seems the world has a serious lack of good or excellent customer service. This is of course important for businesses like hotels, but it also central for the “customer experience” such as the Apple Stores and the vibe and Vide e Cafe.

 

One sources says that this is the age of the -est businesses. Relating to photography, how do you claim to be different, why should someone choose you? What sets you apart – are you the fastest, smartest, cheapest, friendliest…? Choose one or two that you want to focus on when talking to people or making adverts. Listing too many features can mean the core idea is lost – look at magazine or TV ads and it is easy to see when too much information is squeezed in. I saw a TV ad recently that ended with a list of four names, each having a separate display for a few seconds. They are partnerships, in assocation with, sponsored by… afterwards I didn’t know who the main business was and I couldn’t remember any of the names I just since I couldn’t process them easily.

 

The last aspect of this section is Relationship marketing. Within this is Customer Relationship Managment. This topic is more suitable to discussion for large businesses who wish to create huge database of clients, so that they can tailor their offering to their needs and listen to their changing demands.

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