After reading this case study on a telecommunications company: Answer the following:

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I would say that YAK Communications is taking the segment marketing approach to market segmentation.  When the company first went into business, it was taking the niche marketing approach.  However, it is now selling too many kinds of products to too many different groups to really qualify as a niche marketer.

Niche marketing occurs when a company sells only to one segment (or a very few segments) of a market.  YAK was like this early on because it only targeted Canadians with backgrounds in other countries.  All it was selling was discounted calling to foreign countries.  Segment marketing occurs when a firm develops a variety of offers for a variety of segments of the market.  YAK seems to be taking this approach as it offers various types of services both to individual customers and to business customers.

With that in mind, let us look at what sort of positioning statement YAK Communications might have.  A positioning statement identifies that target group that the firm wants to appeal to and specifies what the firm has to offer customers from that target group.  It seeks to state what is distinctive about that firm.  YAK is trying to provide flexible services at a low cost.  It is generally marketing to people who are cost-conscious.  Therefore, it might have a positioning statement such as:  “To businesses and individuals who need low-cost, flexible options for telephone and internet services, YAK Communications is the provider that offers affordable communications without tying customers to restrictive contracts.”

Finally, with regard to the map, I would put “niche markets” and “mass market” on the horizontal axis.  For the vertical axis, I would put “comprehensive services” and “limited, economical service options.”

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