Marketing Applications

Consumer behaviours plays significant role in approximately all types of decisions to be made in marketing. For reason being that all functions performed in the marketing revolve around the customers and consumers. Likewise:

Positioning: Arranging for a product to occupy distinctive, clear and attractive place relative to competing products in minds of target consumers.

Some firms discover it easy to choose their positioning strategy. For instance, a firm well known for quality in sure segments will go for this position in new segment if there are sufficient buyers seeking quality. But in various cases, two or more firms will go after same position. Then, each will have to discover other ways to set itself apart. Each firm must differentiate its offer by building an exclusive bundle of reimbursement those appeals to a substantial group within the segment.

The positioning task consists of three steps: identify a set of possible competitive advantages upon which to assemble a position, choosing the right competitive reward, and choosing an overall positioning strategy. Then the Company must effectively communicate and deliver the selected position to the market.

Segmentation: Dividing a market into distinct groups of buyers on basis of needs, behaviour, or characteristics who may require marketing mixes or separate products. The market segmentation reveals the firm's market segment opportunities. Firm now has to evaluate the many segments and decide how many and which ones to target. Now we look at how companies evaluate and choose target segments. Company also require examining major structural factors that influence long-run segment attractiveness. For instance, a segment is less attractive if already it contains many strong and aggressive competitors. The existence of many potential and actual substitute products may restrict prices and the profits that can be earned in segment. The relative power of buyers also affects the segment attractiveness. Buyers having strong bargaining power relative to sellers will attempt to force prices down, demand more services, and set competitors against one another-all at expense of seller profitability. At last, a segment can be less attractive if it has powerful suppliers who can control prices or reduce quality or quantity of ordered services and goods.

Product development:  A scheme for company growth by offering modified or new products to present market segments. Developing the product concept into a physical product in to ensure that product idea may be turned into a workable product.

Product development: offering modified or new products to present markets.

Market development: A scheme for company growth by recognizes and developing new market segments for present company products.