The marketing strategy has many small steps that have to be completed successfully in order for the company to be profitable. However, there are four big umbrellas that define how the layout should be structured. Whenever we have to think about big plans and long-term goals we start from the general idea and then come and break it into small pieces to see how every part of the process will be done correctly. In this article, we will share a few words about segmentation, targeting, positioning, and differentiation.
To define segmentation we have to define the market and when we talk about the market we don’t refer to the products we sell; we refer to the consumers out there. The products and the consumers are in constant communication and they evolve almost simultaneously. Like in Darwin’s Law useful products that can beat the competition last longer and finally manage to survive. But what is the initial idea behind this success?
As said, the audience is huge and not all of them are going to buy the product we offer. Some may not be interested at all and some may have the value provided by us covered by a different company or product. It is our responsibility to identify who are the ones we can attract using our special offerings. If every company’s target is to add value to its products, it needs to have a clue of the customers available. It is important to realize that you cannot have the whole share of the market for yourself. Even if all customers were committed to your brand only, you wouldn’t be able to serve all of them successfully.
Even the giant companies of each industry do not have the whole pie for themselves. The reason why segmentation is essential is that every consumer does not share the same needs and characteristics. So, in order to serve him, we have to identify him as much as possible. Adding details to his profile will give us a clue of what we have to do to add value to our products that will be attracting the specific customer. Remember, in the end, you will be able to serve only small segments of the market.
Consider segmentation as the process of evaluating the market. The next step, which is marketing has to do with the decision we make after all, regarding where we should focus. Analyzing the market may result in various segments. It is not unexpected that we may find many opportunities out there waiting for us. Still, we will have to decide which one we want to go for. The criteria used are quite simple.
The first one has to do with whether we have the essential resources to enter a certain segmentation of the market. Perhaps, we have to make our horizons smaller and settle for pieces of the market we can actually serve. We don’t want to run into something bigger than our pocket can afford. The second part is to see where we can have the most profit. This will mainly be answered if we check in which area we can expect to have the greatest customer value over time.
Keep in mind that a business is not built in one day and its profits should be expected to follow a particular plan. Do not think of the profits short-term. Instead of turning into markets where manufacturing the product is of low cost, you wanna step into markets where the price you can put on the product is justified to be high.
Differentiation is the step where we want to find some details that will let our product stand out from the competition. The techniques to be done are numerous but the main idea is to consider what is already provided by the competition and create something new that will be hard to copy so that you have enough time to launch and establish your product.
Once everything is cleared out the company will have to find smart ways to communicate the beneficial aspects of the product to the potential customers. The identification of the market that has been done as an initial step provides a whole bunch of useful information to clarify how the particular group of consumers should be approached.