Market Segmentation, Targeting, and Positioning (Essay Sample)

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Market Segmentation, Targeting, and Positioning for Retail Outlet: Adidas Case Study
Introduction
Marketing and the activities that constitute consumer communication are undeniably some of the most critical aspects of creating a competitive advantage in a global business environment. Marketing strategies are vital considerations for firms striving to increase profitability and overall productivity in a highly competitive and dynamic commercial world. Target marketing has taken root in most industries seeking to grow their product share in new and existing markets (Adams). Market segmentation, which entails the division of customers into groups with specific purchasing potential, demographic and psychographic traits, and similar preferences and buying habits, is a common trend among successful corporations. Market segmentation principles are different from mass marketing techniques (Ortiz). A business introduces a product to the market irrespective of consumers’ tastes (Olenski). Porter’s Five Force theory is instrumental to understanding how Adidas has built a competitive advantage and secured its market position by emphasizing customer segmentation.
Adidas’s Target Customers
Adidas is an internationally renowned sports apparel manufacturer and seller whose products are sold in many stores globally. It is undeniable that its market share has continued to grow over the years thanks to innovative product development, marketing, and market positioning tactics. Although the main competitors such as Nike have dominated the sportswear industry, Adidas has often retained its market presence and asserted its strength as an alternative apparel maker. Resultantly, it has survived the competition and remained profitable. 
Evaluation of the Attractiveness of the Target Segment Using Porter’s Five Forces Model
Adidas’s approach to product design is aligned with the core areas of emphasis in Porter’s Five Forces theory. Noted as one of the top apparel manufacturers in Europe, Adidas considers market segmentation an elemental marker of successful companies operating in the modern global business context. Porter’s Five Forces model is essential when companies seek to position themselves for profitability (Woschnick). The author opines that target marking involves evaluating and creating a product portfolio based on consumer trends and behavior. Corporations face immense challenges in the contemporary business setting, prompting them to appraise their markets of interest. 
The Five Forces framework insists that the management of the organization should assess the firm’s competitive rivalry, product differentiation for multiple market segments, the threat of substitutes, impacts of new entrants in the market or industry, consumers’ purchasing power, and the effect of suppliers (Queensland Government). While these variables influence the decision to choose a customer segment, pricing ultimately determines the performance of any commodity or service in a market.
Market positioning in today’s society has significant implications for the sales of any product. Driven by its focus on young adults, Adidas designs products with the sole intention of obtaining a massive pool of consumers in this age group. The company pays much attention to customer segmentation (Olenski). It follows this effort with product differentiation to reach a larger population of customers and capitalize on the expanding apparel market. 
Market segmentation compels enterprises to align their operations with such elements as consumers’ purchasing power, the level of competition, and the impact of alternative products in addition to the diversification of consumers’ needs (Adams). Taking Adidas as a case study, the company has endeavored to consolidate its market position and attract more customers through an appropriate fit between its marketing and consumer communication activities. However, the firm has encountered numerous difficulties associated with competition from established businesses such as Nike, especially in the United States, and the rivalry caused by new companies. 
The present-day consumer has access to diverse shopping center options from malls to local markets and online stores. The emergence of these facilities as the chief means of distributing companies’ products has intensified firms’ involvement in understanding segmented markets based on their demographics, psychographics, and customer behavior. A customer segment analysis gives an organization a clue about which products to differentiate while removing the underperforming ones from its portfolio (Ortiz). Adidas ensures that its presence is felt in large shopping hubs worldwide. Most pertinently, it positions itself as a company that provides products for different age brackets and economic and social classes in the countries where it has opened outlets or subsidiaries. In essence, Adidas analyzes and evaluates consumer behavior to devise suitable marketing campaigns for its respective markets and selected customers. 
When deciding on the product to include in a portfolio, it is vital to establish the effects of market forces on the product’s performance against current competitors and potential new entrants. In practice, market positioning and segmentation should be based on the organization’s distinctive features. The marketing team must carefully decide on the point of purchase (POP) and the point of difference (POD) for successful positioning (Wosch