HI 5004 Marketing Management Assignment

HI 5004 Marketing Management Assignment

HI 5004 Marketing Management Assignment


Segmentation targeting positioning refers to a marketing tool that helps the marketers differentiate its products, attract as well as retains the customers and on the other hand grow the customer base for the products (Anderson and Vincze, 2008, p. 77). These marketing tools help the company to take the advantage of the opportunities in the market and gain competitive advantage over the competitors. Barker and Chitty, (2009, p. 81) agree to this and further added that the segmentation targeting marketing not only helps the company it also helps the customers. The customers get their desired products and services while the company get the required profit. Apart from the profit the company also develop business relation with the customers which in turn makes the customer brand loyal. It also assists the company in targeting the exact customer bases wherein, the profitability of the company is highest. The fact that these three processes takes into consideration the tangible marketing mix, the needs and desires of the customers are exactly met. Herein, the importance of the segmentation targeting and positioning has been discussed with respect to the Anibou Furniture Australia and Lion Dairy & Drinks Australia. The study highlights a comparison between these two companies while also discussing the essence of these concepts in pursuit of the two businesses respectively.

Market Segmentation

Segmentation refers to a procedure wherein, the organization segregates the market into various group bases on the various characterises relation to different products (Beamish and Ashford, 2012, p.98). The segregation takes into account tastes, characteristics and perception relating to various products. As mentioned by Bowman and Gatignon (2010, p. 56), the segregation by the organization differ on two aspects namely the business to business and business to consumer. The business to business aspect takes into consideration the other business perspective while on the other hand; the business to consumer takes into consideration the customer’s perspective of the product.

As in the case of Anibou furniture Australia the segmentation has been made on the basis of geographical segmentation. As stated by Aksoy et al. (2008, p. 106), the geographical segmentation involves the size, region and population density. The company majorly targets the customer base in Australia and more specifically in Sydney. In this context, Boulding et al. (2009, p.383), stated that the segmentation does not purely involve one or two location. The segmentation mainly involves around the selected area but the focus is wide spread. In case of the Lion dairy and Drinks the company aims to serve all the customers in the market providing them with several branded products in milks, yoghurts, soy and cheese. The segmentation in the health drink industry differs largely because of the nature of the products.

As mentioned by Bracker et al. (2008, p. 600), the company selling the health care products like food and milks and milk products tends to target the  widest market base of customers. The reason for this is that the company products are largely consumed by the entire customers group irrespective of their income, age and gender. For instance, milk and milk products like yoghurt and cheese are consumed in every household and on regular basis. This action leads to increase in the sales of the company and therefore, leading to lower segmentation. In case of furniture the segmentation is much wider and precise as compared to the other industry. As stated by Brodie et al. (2009, p. 406), the segmentation in case of the furniture are based mainly on the age group and the purpose of the product. For example, in case of the furniture the segmentation is made based on the age as the children and the adolescent furniture differ in both size and use. However, Matsuno and Mentzer (2009, p. 17) argued that the in case of the furniture mainly difference in the segmentation takes place in terms of the sizes.


Targeting refers to the evaluation of the attractiveness in each segment bases on the buying power of the customers and the size and growth of the market (Matsuda and Hirano, 2009, p. 138). Under targeting the company focuses on one customers target base instead of many. The target bases of customer are selected based on the ability of the target market to provide high income to the company. In case of Lion Dairy and Drinks the target base of customers is widely spread. The company is an iconic brand in milk, cheese, soy, juice and yoghurt. The target base of customer differ largely in case of the health related companies. The company mainly targets the all the customers as these are basic products needed for the survival.

The products of the Lion Dairy and Drinks are consumed by the customers from all the age group thus making is easier to develop the strategies. In this context, Parasuraman and Grewal (2008, p. 169) stated that the customers for various age group are equal target for the company and therefore, the company occasionally plans various different products strategies. However, Young and Javalgi (2010, p.117) argued that though the targeting in case of these companies are majorly same but the positioning is widely exclusive for all the age group. In case of the Anibou furniture the target base is widely different as compared to the health drinks. The company has various targets based on the use and the size of the products. The target customer’s involve household and commercial. The household is in turn further divided into two main aspects the adults and the children. The commercial target markets are largely based on the referral based advertisements (Matsuda and Hirano, 2009, p. 137). However, Yücel et al. (2009, p.99) agreed to this and further added that the customers in the household sector are targeted based on the modern advertisement techniques.

HI 5004 Marketing Management Assignment


The positioning process of the marketing mix involves the process that helps the company to create an identity in the market base of target customers (Matsuda and Hirano, 2009, p. 139). The positioning is done by the company based on the product and its brand. As mentioned by Parasuraman and Grewal (2008, p. 168), there are three types of positioning namely functional positioning, symbolic positioning and experiential position. As mentioned by Young and Javalgi (2010, p.116), the main difference that sets apart various industries is the way the company positions itself in the target market. The company takes into consideration the segmentation and the target base of the market while position itself. The positioning of the products of the company is largely based on the understanding in the relation between the products and the customers. The position of the products involves the brand image and the reputation on the brand or the company in the market. According to Bracker et al. (2008, p. 601), the company focuses on the positioning of the products only when the segmentation and targeting has been defined.

In case of the Lion dairy & Drinks which is a daily and basic product the position differs a lot as compared to the Anibou furniture. The products of the company are consumed by the customers from all the age group thus simple marketing campaign and improvised existing markets helps the company to achieve its objectives. As mentioned by Brodie et al. (2009, p. 406), the adoption of basic an regular marketing techniques like change in the labelling of the products and press marketing proves to be effective tool for position in case of the dairy products. However, in the case of furniture the positioning is widely varied as the customers from wider base are targeted. The positioning is done based on the comparative advertisements. The customers from the household are targeted based on the using extensive advertisement and development of brand recognition. The positioning at this level involves clarity, consistency and credibility. However, Bracker et al. (2008, p. 601) cited that the furniture positioning in the household mainly involves repositioning. The repositioning involves adding the new feature and this addition leads to repositioning.


Segmentation, targeting and positioning are interrelated activities and are important to achieving a successful marketing mix. All the three processes are consistent with each other and thus, making it easier the organization to achieve its objectives. This process ensure the exact target base for the company within which its needs to operate (Matsuno and Mentzer, 2009, p. 17). It also assists the company in targeting the exact customer bases wherein, the profitability of the company is maximum. The fact that these three processes takes into consideration the tangible marketing mix, the needs and desires of the customers are exactly met. The tangible marketing mix takes into consideration the price, characteristics, promotional activities and places for selling the products. As mentioned by Young and Javalgi (2010, p.15), the segmentation, positioning and targeting process helps to develop exact strategies that gives the company competitive edge over its competitors. Thus, the segmentation, targeting and positioning are interrelated activities which help the company to understand the exact base of its customers while providing them with the desired products.

Reference list

Anderson, C.andVincze, J. (2008) Strategic marketing management. 5th ed. London: Chapman and Hall.
Barker, N., and Chitty, W., (2009). Integrated Marketing Communications Asia Pacific Edition.  6th ed. New York, London: Routledge.
Beamish, K.
andAshford, R. (2012) CIMCourse book07/08 Marketing Planning. 3rd ed. New York: Free Press.
Bowman, D. and Gatignon, H. (2010) Market Response and Marketing Models, 4th ed. London: Routledge.
Aksoy, L. Groening, C., Keiningham, T. L. and Yalç?n, A. (2008) “The Long-Term Stock Market Valuation of Customer Satisfaction,” Journal of Marketing, 72, 105–122.