Assignment 2. Business & Marketing Research Paper

Marketing Assignment
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Explain Step 5 of constructing a market-attractiveness/competitive-position matrix for evaluating potential target markets. When should a manager consider a market segment to be desirable? Construct a matrix, and provide an example illustrating these concepts.
The five steps of constructing a competitive-position or market-attractiveness matrix are mentioned below:
1 Selecting a criterion to measure competitive position and attractiveness (Valdani & Arbore, 2013).
2 Weighing factors of competitive position and attractiveness to have an idea of their potential outcomes and significance (Valdani & Arbore, 2013).
3 Assessing the current position of potential target markets based on these factors (Valdani & Arbore, 2013).
4 Projecting the future positions of all markets by the customer, competitive and environmental trends (Valdani & Arbore, 2013).
5 Evaluating implications of possible changes in the business strategies and resource materials (Valdani & Arbore, 2013).
A market segment provides the companies with a solid foundation for current or long-term profits. Brands consider different options of the market segment to have an idea of when to target new customers and how to penetrate into emerging markets. There are times when the manager should consider a market segment, such as when the competition in the business world is at its peak, and the company wants to generate lots of revenues, and when its target audience is extensively large and needs to be broken down into small, more homogenous groups (Valdani & Arbore, 2013, p. 185). Lifestyle, geography, behavioral traits and demographics are commonly used approaches of market segments, and companies may or may not try all of them. If every aspect is paid attention to, the chances of increasing the number of customers, generating more revenues and penetrating into new markets become higher than before (Valdani & Arbore, 2013).
From this competitive-position or market-attractiveness matrix, it is evident that the CEO of a company, let’s say PepsiCo, directs all his messages to the director, who then forwards those messages to the manager, followed by individual employees. It is like a chain in which every person is responsible for fulfilling his tasks. If he does not perform well, the chance is that the organization (PepsiCo) will have to lose many clients and its reputation will be significantly damaged (Sawyer, 2014).
Define niche market strategy and growth market strategy. What are some strategies used by organizations looking to build and sustain competitive advantage in niche markets and growth markets? Provide relevant examples.
According to Marlena Grabowska, a niche marketing or niche market strategy helps an organization understand what its target market is, and the growth market strategy allows the company to target potential customers from across the globe and ensures its long-term growth. Both of these strategies are deployed to penetrate into the specific market which is new or unique and where the organization had not introduced its products previously (Grabowska, 2014, p.165). Businesses are looking to grow, build and sustain competitive advantages ...