Marketing Strategy and Competitive Positioning pdf ebook

Exposure to political and legal factors
As with exposure to economic uncertainty, markets that are vulnerable to political or 
legal factors are generally less attractive than those that are not. The exception, of course, 
is where these factors can be used positively as a means of entering the markets against 
entrenched but less aware competitors (for example, when protection is removed from once 
government-owned monopolies).
Degree of regulation
The extent of regulation of the markets under consideration will affect the degree of free-
dom of action the company has in its operations. Typically, a less regulated market offers 
more opportunities for the innovative operator than one that is closely controlled.
Again there is an exception, however. Regulated markets might afford more protection 
once the company has entered. This might be protection from international competition 
(for example, protection of European car manufacturers from Japanese car imports by 
quotas), which effectively creates a barrier to (or a ceiling on) entry. The warning should be 
sounded, however, that experience around the world has generally shown that protection 

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DETERMINING MARKET SEGMENT ATTRACTIVENESS
breeds inefficiencies and when that protection is removed, as is the current trend in world 
trade, the industries thrown into the cold realities of international competition face major 
difficulties in adjusting.
Social acceptability and physical environment impact
Increasingly, with concern for the environment and the growth of ‘green’ politics, compa-
nies are looking at the broader social implications of the market targets they choose to go 
after. When a company is widely diversified, the impact of entering one market on the other 
activities of the company must be considered.
With increasing concern for the natural world, its fauna and flora, some cosmetics com-
panies are now looking to non-animal ingredients as bases for their products, and manufac-
turers of aerosols are increasingly using non-ozone-depleting propellants in place of CFCs. 
The Body Shop, a cosmetics and toiletries manufacturer and retailer, has built its highly 
successful position in the market through a clear commitment to the use of non-animal 
ingredients, just as Innocent trades on ‘natural’ values with its fruit (and nothing but fruit) 
drinks. The late 2010s saw the beginning of a ‘clean beauty’ boom, with small, millennial-
friendly labels taking on the giants. Brands such as Haeckels, Austin Austin Organic and 
Kahina Giving Beauty, based on sustainable, natural beauty, are carving a niche for them-
selves. This trend could become big business as, according to Mintel, clean beauty is a big 
market – the percentage of shoppers who would buy or boycott a brand based on its ethical 
values has grown from 20 per cent in 2017 to 57 per cent in 2018. However, for these small 
businesses it is not about growing big, it is about focusing on quality and purity and about 
sustainability from cutting down waste and protecting the environment (Cook, 2019).
Source: Sofiaworld/Shutterstock.
The disastrous oil spill in the Gulf of Mexico in the spring of 2010 had major impli-
cations for the reputation of the oil giant BP, which was responsible for the Deepwater 
Horizon oil well. Repeated failed attempts to stem the leak led to a loss of confidence in 
the technical competence of the firm, and indeed the whole oil industry, such that permis-
sion for new well drilling in the USA was suspended for a six-month period while safety 
procedures were re-examined and revised.
Summary
The quality of a market is dependent on a number of factors. Other factors being equal, 
segments that are big and growing offer the best prospects for the future. Other factors 
rarely are equal, however, and size and growth are not the only criteria that should be taken 

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