Jan

21

What is the ultimate source of growing your business?

In the 70′s and 80′s; it was new products and services! If you build a better mousetrap, and the world will knock on your door.

Then in the ’90s, when David Aaker popularized the strategy and structure of market management, it became clear that products were second only to market segments.

The compelling underlying logic is, even if your product-development and R&D departments came up with the most interesting product but there’s no market segment in need of such product, it will not sell. No sell, no buyers, no sales, and, therefore, no market share.

The primacy of market over product eventually led to a necessary redefinition of marketing itself. Now marketing has evolved into a three-step process-- 1) segmenting, 2) targeting and 3) positioning.

Segmenting, the first and starting step, about understanding the market in terms of what consumer values remain either underserved or unserved among its different segments.

An underserved consumer value represents an opportunity for marketers to improve their current offering by providing the direction of covering what is still missing or what is inadequately satisfied. An unserved value is a larger opportunity to satisfy what everyone in the competitive field has neglected serving.

Once the most attractive segments are selected, a company should not directly start targeting all these segments — other important factors come into play in defining a target market.

Targeting defines the abilities of the company and resources needed to enter a market then analyzes competitors on their resources and skills then compares the company’s resources and skills to its competitors, and decides the actual target markets where the company’s products/services have the advantage.

Positioning, the last step, creates an identity or image of the product in the mind of the customer.In this step, the company identifies the differential advantages in each segment then decides on a different positioning concept for each of these segments.

Since every segment is different from the others, different customers with different ideas of what they expect from the product.

So the ultimate source of business growth is knowing your market segments and positioning your products and services best to continuously supply or be in demand of your target market.

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