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Question for Business people/Marketers

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Mo Z. Dizzle:
does anybody what a market-based company is?

someone told me it's where a company tries to get as much of the market share they can in their industry; i'm not 100% sure about that though

edit: i posted this in the gspot, but that section seems more laid back; i think its a better fit in the TOT

Ant:
I don't think there is a definition for "market-based business."  This is not a commonly used term.  A literal translation would mean a business that is based in a market.  Probably they mean a business that exists in a "market-based economy."

Perhaps what you mean is "market-based economy."   This is another way of saying "free-market economy."  A free-market economy is one without government regulation of industry.  Business are free to compete however they please. 

Of course there is no such thing as a pure free-market economy (or market-based economy).  All economies have some amount of regulation. 

A "free-market economy" depends on suppliers and consumers to set prices for goods and services.   This is different from a "planned economy" where the government intervenes to set prices and decide what goods are to be produced. 

Communists like planned economies.  Capitalists like market economies.  Back to your question, I would think a business that is not "market-based" is one where the company is part of a "planned-economy."

Mo Z. Dizzle:
this was the question my prof gave for the assignment:
Question: Is it necessary to use a unique positioning strategy for each market segment targeted by a market-based company?


i looked all his notes though, he didn't even have that term in there; and i tried googling it but to no avail
wikipedia brought me to what you said though Ant

at first i was leaning more towards the answer 'yes they need unique positioning strategies' but im re-thinking that now; i dont think it would make sense to position it differently if it's the same product or service.....then again i guess it also depends on consumer wants, needs and demands

what's your opinion on it? and anybody else's for that matter

btw, props for the info Ant; it makes it a little less stressful now on me lol

Ant:
I think that question is retarded.  Or maybe it's just a trick question

That type of stuff is never necessary in business.  For it to make any sense you'd need the example of a specific company at a point in time.  Not the vague idea of a "market-based company" trying to use a "unique positioning strategy" for "each market segment."

I know what he means by a "unique positioning strategy," but crap like that isn't real business.  Do you think youtube thought about their "unique positioning strategy" when they were building the company?  I doubt it.  But within one year they made a company worth 1.7 billion. 

In another sense... every strategy is "unique." How can two companies execute identical strategies? Its highly unlikely.   And every strategy "positions" you in some way.

But I personally don't think explicit strategy is at all necessary.  In fact, its damn obvious that "explicit" strategies are not necessary for businesses to be successful.  But every business has an "implied" strategy.  Meaning, their "pattern of action" defines their strategy.  Google didn't have an "explicit" strategy when they were starting, but you could define their strategy by describing their "pattern of action" overtime. 

In fact, most strategies are "implied" rather than "explicit."  The majority of businesses operate without ever doing any type of explicit "strategizing" or "strategic planning."  Sure the managers spend a lot of time thinking about how to improve, what's the best course of action, etc.  But they don't go through the trouble of creating a textbook "positioning strategy" like your professor asked about.

So to answer your professors question... I have a canned response to any type of question like this one.  That being:

Business don't need to "use" strategies.  They need to be concerned with making themselves better every day, and making common sense decisions about the appropriate course of action to take at any given time.  The accumulation of your common sense decisions, and attempts to improve eventually become the implied strategy.  At times an explicit strategic plan may be necessary (like when a company needs to chart a course to change drastically), but its misguided to think it always a necessity.

Don Rizzle:
ant you were spot on with your first reply but i'm not so sure about your second.

The question is openned ended unless it goes with some specific text your supposed to refer too.

I would say in most cases businesses need a stragegy, you seem to imply every company is just blundering their way through everything but thing are far more complex than this.

Mo I would answer the question by picking out some examples to illustrate the points your trying to make. I would give some examples supporting unique positioning strategies and others opposing with a conclusion at the end.

supporting example you could use would be a clothes shop which nearly always segregate their target markets highten their appeal to their tarket market, after all do you want buy clothes from the same place as your grandma?

an opposing example would be a product like milk and milk is pretty much milk so theres only so much you can do differentiate yourself and the result is likely to have little affect on the consumer 

interesting example of where this has been changing is with the organic food produce market where before you would normally just normal milk now you can buy organic and its the same for nearly every food.

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