Joe Santos

How do you define marketplace success?

Marketplace success, in my opinion, is being able to take into account all the factors of the marketplace and transform it into an effective business model. By understanding the different business environment characteristics, a company will be able to provide the best possible product. Although this definition may be associated with the ideal situation in which the company is able to collect and interpret all information, the concept of being successful in the marketplace can be simplified and interpreted as providing a product or service that provides added value to consumers. Brand equity, market research, differentiation, segmentation and measurability are five concepts I have identified as contributors to the success within the marketplace. 

“What do these terms even mean? Why are they important?”


Brand Equity

The first term, brand equity, can be interpreted as how much a particular brand name is worth. In other words, brand equity relates to the reputation of the brand and its effect on making the product or service more appealing than other similar products or services. When consumers choose to buy a branded product at a higher price as opposed to a similar no name product, the difference in price paid is a measure of the brand equity. Brand equity can be “gained” or “produced” through different means. A company’s reputation, involvement within the community, product quality, and packaging are just a few of the factors that contribute to brand equity. Brand equity is an important concept because often consumers will make purchase decisions based on what’s behind the company name. Within our studies regarding produce purchases, we found that although the brand name alone may not be important to consumers, they often associate the aspects of organic or environmentally friendly with brand and show more willingness to purchase. 


Market Research

The second concept, market research, is important as it can give insight into the minds of consumers and market. Simply put, through market research companies can gain useful information to help in their creation of a marketing strategy. Through observations, surveys, interviews, and discussion groups certain information can help companies create marketing plans that are more effective. Further, companies can use programs to interpret the information and tie their results together to discover new directions for their marketing plans. When implementing market research throughout our OriginO marketing plan, our team was able to discover which strategies were effective and which were not. 


Differentiation

The third term, differentiation, is a fancy way of saying how your product stands out from other products that are similar. Differentiation and positioning are key in achieving success within the marketplace because through effective use of these strategies you can set yourself apart from the competition. In a sense, differentiation is like providing the consumer with a reason to purchase or use your product or service over others. In our project with OriginO differentiation was a key concept because of the vast amounts of produce farmers and the growing organic industry. One goal for our marketing plan was to differentiate the OriginO product from being just another tomato and provide a positioning strategy that would allow the brand to experience short and long term growth.


Segmentation

The fourth term, segmentation, can be interpreted as separating the market into different groups based on certain characteristics such as age, location, sex, and lifestyle. These categorizations of consumers can be marketed to in different ways based on their classifications. Overall, it means that companies must know their consumers and decide how they want to reach each grouping. Segmentation is important as it allows marketing strategies to be more concise and specific to a group or demographic that a company wants to address. In the OriginO project, our group was able to gain insight as to which strategies would be most effective by first defining the family members which shopped for produce.


Measurability of Strategies

The fifth concept, measurability of strategies, can be understood as being able to see how much of an effect the particular marketing strategy had on improving your standing within the marketplace. The ability to measure a strategy means that the initial goal must be clear and attainable. A goal like “be the best”, for example, is hard to judge if you have achieved it or not. Having a measurable strategy allows for reevaluation and tweaking to better target consumers in following periods.


How do these concepts tie in with one another?

In all of these concepts and throughout the project the general underlying theme is taking into account as much information regarding the business environment and integrating it into a strategy that will increase the company’s success within the marketplace. By taking into account the characteristics of the market environment, the characteristics of consumers, and the strategies of competitors, a company can create a marketing plan that will be effective in targeting their current and potential customers. Further, by implementing a strategy that is measurable in its effectiveness, companies are able to re-evaluate their strategies and add new research and be flexible with market changes.


What are the challenges to these concepts?

In perfect conditions a company would have all information regarding the market and be able to interpret it to create the ideal marketing strategy. These concepts, however, are very sensitive to changes in information and consumer opinion. Realistically, companies will not have all information readily available to them when constructing their marketing plans. Market research and measurable strategies will help in creating an effective business plan but cannot take into account the constant changes within the business environment. Further, companies are subject to consumer opinions that can damage brand equity and differentiation easily. One bad review or negative news coverage can sway consumers against a brand and hurt the marketing strategy in place.