Marketing Strategy and Competitive Positioning pdf ebook

Figure 9.1 
Market 
attractiveness 
and competitive 
position
Source: Adapted from 
Piercy (2016a).
Market attractiveness
Competitive position
Core business
Illusion
business
Peripheral
business
Dead-end
business
Strong
Weak
Low
High

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233
THE PROCESS OF MARKET DEFINITION
In deciding on the markets and segment(s) to target, four basic questions need to be asked: 
1 
How do we define the market – what is its scope and constitution?
2 
How is the market segmented into different customer groups?
3 
How attractive are the alternative market segments?
4 
How strong a competitive position could we take – where do our current or potential 
strengths lie?
9.1 
The process of market definition 
The definition of the markets a company serves, or those it is evaluating as possible targets, 
is partly a question of measurement and conventional competitive comparisons. It is also in 
part a creative process concerned with customer needs. Stanley Marcus of Neimann Marcus 
is frequently cited on this point: ‘Consumers are statistics. Customers are people.’ 
A number of points are worth bearing in mind in approaching market definition: 
● 
Markets change. The development of marketing strategy takes place in the context of 
a constant process of change. From this perspective it is unreasonable to assume that a 
company’s definition of markets should remain static.
● 
Markets and industries. We have made the point before that markets are not the same 
as industries or products. Industries are groups of companies that share technologies 
and produce similar products. Markets are groups of customers with similar needs and 
problems to solve. Defining markets around industries and products exposes a company 
to its competitive position being overturned by competition from outside the conven-
tional industry. Developing robust marketing strategies and strong competitive positions 
requires not only understanding the existing industry (see Chapter 3 ), but also the market 
from the customer’s perspective (see Chapter 4 ).
●