Answer to Question #232910 in Marketing for Fadi

Question

How would you define the company's target market? What is the current positioning strategy? Briefly explain the Mavi's Product, price, promotion, and place?

Answer 1

A company’s target market is a group of people with some shared characteristics that a company has identified as potential customers for its products. Identifying the target market informs the decision-making process as a company designs, packages, and markets its product. A target market may be broadly categorized by age range, location, income, and lifestyle.

Current positioning strategy is when a company chooses one or two important key areas to concentrate on and excels in those areas. An effective positioning strategy considers the strengths and weaknesses of the organization, the needs of the customers and market and the position of competitors.

Product refers to the products and services offered by a business. Product decisions include packaging, appearance, function, warranty and quality. Customers need to understand the features, advantages, and benefits that can be enjoyed by buying goods or services.

Price refers to the pricing plan for products and services and how it will affect customers. Pricing decisions does not include not only the selling price, but also discounts, payment arrangements, credit terms, and any price-matching services offered. When determining a pricing strategy, it is important to consider the business’s position in the current marketplace.

Promotion refers to the activities that make the business more known to consumers. It includes items such as sponsorships, advertising, and public relations activities. Since promotion costs can be substantial, it is important to conduct a break-even analysis when making promotion decisions.

Place refers to where the product of the business is seen, made, sold, or distributed.  It is important to consider how accessible the product or service is and ensure that customers can easily find you. The product or service must be available to customers at the right time, at the right place, and in the right quantity.