A strategy implementation process refers to the actual application of policies and procedures and whether the process will achieve its objectives will depend on various marketing factors (David & Chelte, N.D). The two most important factors that will ensure that the implementation process is successful are; market segmentation and product positioning. Market segmentation refers to categorizing of markets according to consumer tastes and preferences. The segments are mostly geographical areas (McCarthy & Shapiro, 1960). Market segmentation is important in implementing strategies especially for specialized and also for small firms.
Market segmentation facilitates market penetration and product development as it helps to boost sales by discovering new potential markets and product preferences.
Additionally, it assists in maximum utilization of scarce resources. For a segmented market, large scale production and extensive advertising is not necessary (McCarthy & Shapiro, 1960). Market segmentation therefore can be effectively applied by small scale firms in their competition with large firms through adjusting profit earned per unit of output and increasing sales in a given segment.
Market segmentation is also important in strategy implementation as it facilitates customizing of decisions to suit the prevalent conditions of a given segment. It is especially useful in making decisions regarding marketing mix variables, these are; price, promotion, place and product.
Market segmentation helps in relating demand and supply and thus reduces cases of shortages and excess supply. The latest strategy in segmentation pays closer attention to regional tastes and preferences (Kotler, 1999). Therefore different commodities are offered to different regions by the same firm.
Product positioning is applied after market segmentation to identify consumer tastes and preferences. Product positioning is important as it shows how to satisfy consumer wants by indicating the product attributes they prefer.
Moreover, it reduces chances of misdirected marketing by noting the consumer needs distinct to each specific segment and therefore can be said to ensure effective advertising (David & Chelte, N.D). During product positioning it is important to consider that a strategy cannot be effective in two distinct segments and the strategist should pay close attention to any unexploited segments. Effective product positioning makes a firm clearly distinct from a competition.