Assignment Title: Weekly Case Assignment 04
Date: 10 April 2021
1. After reviewing chapters 6, 7, and 8 of the Kotler and Keller text, and using specific information derived
from the text, provide a brief comment about each of the following:
a. An explanation how an organization identifies and selects the primary target market for its
products or services. Be particularly mindful of the criteria used for segmentation and the
criteria used for selecting a target market (consider information from pages 92 – 102 of the
text). Please use appropriate APA citation and attribution rules for all information sources.
To achieve a competitive advantage, most organizations incorporate target marketing as
part of their strategy. The marketing teams identify and select the primary target market
for the products and services of an organization. Many organizations conduct internal
analysis by using demand metrics as a framework to identify their strengths, weaknesses,
opportunities, and threats, which make them understand their capabilities and resources. In
addition, external analysis is also carried out to understand how social, technological,
environmental, and political factors will affect the ability of the organization to capitalize
on target markets. The combination of the outcomes of these analyses (internal & external)
provides the bedrock to identify and select market opportunities.
Marketers identify target markets based on key segmentation variables; geographic,
demographic, psychographic, and behavioral (Kotler & Keller, 2016, p. 117). According
to Kotler & Keller (2016, p. 117), geographic segmentation can be based on countries,
states, regions, counties, cities, or settlements. The needs and wants of buyers determine
how organizations operate in a location, whether to focus on one or few aspects or even all
and concentrate on local variations. Rapid development in settlements can also necessitate
the need for granular marketing or micro-segmentation such that marketers can focus on
individuals. Another popular segmentation variable is demographic, which is easily
measured and categorized based on numerous criteria associated with consumers’ needs
and wants. These criteria include age, gender, income, generation, race, and culture among
others. Marketers often combine demographics with psychology to better understand
consumers and this is referred to as psychographics. Consumers are categorized based on
personality traits, lifestyles, or values. Behavioral segmentation help classify consumers
by using variables such as needs and benefits, decision roles, user, and usage.
The needs and wants of buyers vary and no organization can satisfy the spectrum of all
buyers. Hence, market segmentation helps the organization to separate the market into
chunks by using criteria that are measurable, sustainable, accessible, differentiable, and
actionable (Kotler & Keller, 2016, pp. 124 – 125). To select a viable market target, most
organization undertake macro-segmentation by looking at a broader view of the end-use
market to serve and then narrow down to micro-segmentation by looking at the specific
end-use market of best fit (Kotler & Keller, 2016, p. 123). The range of levels of
segmentation available to marketers can guide the decision on target markets. According
to Kotler & Keller (2016, p. 125), organizations can use Michael Porter’s five force factors
to determine the threats to the chosen target market. With this as a guide, the organization
can select the best level of segmentation and the viable strategy; full market coverage
strategy, multiple segment strategy, or single-segment strategy. To critical evaluate the
market segments and select a viable target market, organizations must consider the overall
attractiveness of the segment (external) and the objectives and resources of the organization
(internal) in such a manner that is legal and ethical (Kotler & Keller, 2016, p. 128).
b. How an organization can develop a positioning statement that aligns its products or services to
the customers and consumers (consider information from pages 107 – 112 of the text). Please
use appropriate APA citation and attribution rules for all information sources.
According to Kotler & Keller (2016, p. 131), segmentation, targeting, and positioning are
the foundation of all marketing strategies. Identifying and selecting the primary target
market for the products and services of an organization will not be sustainable if the
organization is not well-positioned in such a way that the customers and consumers
recognize and value its existence.
To develop a positioning statement that aligns the products and services of an organization
to the customers and consumers, an organization needs to select a competitive frame of
reference (Kotler & Keller, 2016, p. 131). This step allows the marketing team to carry out
a detailed competitive analysis by identifying other brands that are in stiff competition with
the organization’s brand. Apple knows Samsung is a major mobile phone competitor;
Honda knows Toyota is a major competitor in providing affordable luxury cars. Also,
markets need to understand the strengths and weaknesses of the major competitors and
evaluate the competitive dynamics by considering three variables; share of market, share
