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Business Strategy And Development

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Every company or small / home business exists for the purpose of providing their product or service to the market place. With this point in mind it is sometimes baffling not to mention amazing that a great deal of businesses do not spend time on market segmentation (or niche marketing and we will use the terms interchangeably) as a regular part of their business strategy planning sessions.



Companys often ask about how to do market segmentation and some of the many answers to that question will be addressed here. Failure to focus on implementations of market segmentation essentially means that the given business may well end up selling their product or service into a section of the market place which is not as good as a fit as it could or should be.

The companies which command significant market shares are the ones which make sure their products or services are carefully targeted to a specific niche in the market. Lets consider car manufacturers who wish to sell a sports car with two seats and costs in excess of $60K. This should get you thinking, so consider this if you were tasked with selling this type of car who would you target ? would you spend thousands of dollars sending out leaflets and information to young mothers whose children are all at school ? Would you go to college campuses to speak to post graduate students about buying their first car ? or how about going to visit local working mens clubs ?

As we continue to consider finding an appropriate fit within the market for our product or service consider the latest video game which has entered the market. If you were tasked with making maximum sales of this product in a given period of time what groups of individuals would you get together into a room to talk about the product in order to effect the most of amount of sales. Would you call up the local church and ask the pastor for permission to address the congregation after the next prayer meeting ? Of course you would not but you may well take a similar approach if you were representing a music production company who were promoting one of the hottest christian artists on the scene.

When considering market segmentation we have to stand from the companys point of view and we look out from the company and view the landscape which is called the market. In essence we are looking out at the sea of the population all of which may be clients of ours. Here follows a process on how to effectively segment your market.

Niche marketing looks at splitting up the target market into group for which you can use to target your product and service to. The market can be segmented by race, age, earning capacity, living area, marital status, disposable income, height, skin color, parents, single parent families, music lovers etc, etc which when devised correctly will give you a firm base for which category of product you can sell to a particular Market Segment.

In the examples above lets consider music lovers; straight away we know that within this market segment or niche there can be jazz, classical, opera, rap, r
Business Strategy And Development
Questions that should be asked may include the determination of the fact that is there even a strategy in existence or if so, is this the correct one? Additionally, how do we determine what a strategy is and how does one go about developing one?

It is important when developing strategy to look at some of the issues and why a chosen path can go wrong-if one keeps doing the same thing, one will get the same results.

Many complaints about strategy range from the fact that it is difficult to determine, it gets messy and unfinished, and many people involved either do not contribute or attempt to dominate proceedings and a general feeling of the future and the failure of any future chosen path.

Broadly speaking, some schools of thought hold with notion that there are three main reasons for a failure of strategy.

Managers often fail to realise what these differences are; business schools talk about corporate-centre strategy and business-unit strategy. Business-unit strategy is for controlled organisations that may be part of conglomerates or single-business units whereas the other is for conglomerates planning growth through the use of single business units.

Another is often no clarity of purpose; for example there is no point in using models that are simply intellectually attractive when the purpose of the task is to discover options and directions and gather proof to support decisions about the future.

The business - unit level requires methods that are relatively straightforward and the only real obstacles are intimidation by "professionals" and their jargon. Most means of analysis are in excess of 35 years old but there is a general lack of understanding of them amongst business people and most of them do not know how to use them.

So how do we correct this anomaly?

Initially, the ground rules need to be set so participants need to arrive with open,clear minds. Strategy may be likened to seeing everything around, from every angle available and even into the future and the following requirements must be met to be successful: Customers are paramount and form the basis of market uuderstanding, practicality must take priority over theory, the business needs of now and the future need to be thought about and the strategy needs to be measurable.

It is worth at this point to touch on the philosophy behind a strategy.

The best place to start is to take the old adage of begin with where you want to be and work backwards to where you are now.

If, on the other hand, one believes that strategy is an analytical process then start with where you are and work forwards. However there is a difficulty with this approach as straightforward arithmetical thinking stifles creativity.

Perhaps, in the real world, a combination of both methods is probably a necessity.

This is all, of course, driving towards growth of the business and that is largely down to marketing. So why are not all growing firms good marketers and why have not they developed a good strategy?

Very briefly, this begins with a failure to understand the difference between selling and marketing - marketing is about developing products or services that customers will want where selling is about simply getting people to but the product.

The rest, for the moment, I leave you to ponder on.
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About Author
Both Ben Needles & Naz Daud are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Ben Needles has sinced written about articles on various topics from Business Credit Cards, Anger Control and Business Credit Cards. About the Author (text)Stephen C Campbell MBA, MSc is an international Business Consultant for further information visit him viahttp://www.CapidHous. Ben Needles's top article generates over 550000 views. Bookmark Ben Needles to your Favourites.

Naz Daud has sinced written about articles on various topics from Real Estate, Ezines And Newsletters and Business Promotion. Naz Daud Business Franchise OpportunityBusiness Dire. Naz Daud's top article generates over 60500 views. Bookmark Naz Daud to your Favourites.
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