Segmentation and positioning in the marketing practice of the company

Keywords: marketing, segmentation, positioning, competition, smartphones

Abstract

In the modern conditions of the promotion of goods and services, companies need to carry out market segmentation. Timely and thoughtful segmentation of consumers allows the companies to get ahead of competitors and achieve the greatest efficiency of the companies' activities. At the segmentation stage, the company identifies the market, at the targeting stage selects the segment, and at the positioning stage creates competitive advantage. All these steps together help to establish a better fit between the company’s offerings to a customer and to understand what customer really values. For business to be successful, it is important to remember that these steps are a process to support business decisions, but not a static classification of the market. With the rapid development of the modern trends, technologies and communication channels, it is vital for the companies to stay up to date and constantly update the methods of segmentation and the ways of positioning in the consumers’ minds. Such fast changes of the market explain constant need for marketing research. Current paper focuses on the development of segmentation recommendations for such companies as Impression Electronics, smartphones segmentation base of which is not clearly defined, but at the same time it has quite promising idea of ‘Ukrainian brand for Ukrainians’. One of the main problems of the company is that even though it is trying to reach a low-end smartphone market, it is already occupied by more powerful players, which means Impression Electronics ImSmart needs better and deeper segmentation and changes of its current ‘less for much less’ strategy. The paper proposes new segmentation base which is focused on the young students and retired people – two different segments that can be united by other segmentation bases – family values.

Published
2019-06-19
How to Cite
Gonchar, V., Gorokhova, T., & Ponomarenko, A. (2019). Segmentation and positioning in the marketing practice of the company. Journal of Modern Economic Research, 1(1), 39-53. Retrieved from https://www.denakyrpublishing.science/index.php/jmer/article/view/5
Section
Articles