MARKET SEGMENTATION STRATEGIES

MARKET SEGMENTATION STRATEGIES

Market segmentation

There are two primary strategies that are mainly used by companies to market their services and products. The first strategy, which is used by companies to market their products, is market segmentation. In this strategy, the company usually focuses on its efforts on the target market segments. The main reason as to why most organization focuses on market segmentation is because it is an effective method that increases the focus of a company on the market segments. The second strategy that is by companies to market their products and services is Mass-marketing; this strategy entails the selling of products and services to everyone in the market. Therefore, the company bases its strategy completely on a new segment that is likely to increase its profitability and focus.  Market segmentation plays an integral in increasing competitiveness in the market (Swenson et al., 2018). The second competitive strategy that the company will acquire from market segmentation is the capacity to retain customers. Closeness to customers results in a high level of customer retaining.

Value chain activities refer to the activities that add value to the services which are provided by a company to the customers. This paper delves to explore reasons as to why it is important for a health care provider to consider their value chain in the process of market segmentation. Health care providers are supposed to embrace value-adding activities in their market segmentation strategies. Value-adding service delivery strategies help in the translation of the directional, adaptive, market-entry, as well as competitive strategies into action as an important component of the value chain. Value-added service delivery plays an integral role in the success of the health care organization because they are the main method that helps in creating value for the company.

Design of service helps in the provision of satisfaction to the customers, physicians, friends as well as families and to include numerous service categories comprising of segmentation, emergency medication, and long term care. Healthcare organization should also consider their value chain in the process of market segmentation to be able to acquire points of clinical service operations such as; intensive care. Market segmentation helps in redesigning billing activities, thus reducing customer complaints (Ludden & Vallgårda, 2019). This will help in addressing customer complaints and avoid billing errors.

In conclusion, health care providers need to consider their value chain in the market segmentation process to be able to gain a competitive advantage and enhance customer satisfaction. Healthcare organizations should also consider the value chain to be able to effectively administer and make use of various independent agents in their supply chain.

References

Swenson, E. R., Bastian, N. D., & Nembhard, H. B. (2018). Healthcare market segmentation and data mining: A systematic review. Health marketing quarterly, 35(3), 186-208.

Ludden, G. D., & Vallgårda, A. (2019). A design perspective on future healthcare services for the home environment. In-Service Design and Service Thinking in Healthcare and Hospital Management (pp. 155-167). Springer, Cham.