Assessing Market Opportunities Course Work

Published: 2021-07-05 00:50:05
essay essay

Category: Business, Family, Health, Industry, Customers, Marketing, Market, Segmentation

Type of paper: Essay

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This paper highlights the market segmentation of the home health industry. Basically, it presents an in depth understanding of market segmentation and the description of the industry target markets. It as well presents a well developed value proposition for the home health industry’s product or service through differentiation and positioning. This is undertaken by analyzing the competitors and by as well analyzing the home industry service or product offered competitive advantages.
Market segmentation is defined as the division of the targeted market into different homogenous groups (Gupta, et al. 2005). This implies that the market is divided into groups of entity markets with same wants and needs or which might be in need of different products and services offered by the company. It encompasses the offering of different marketing mix to enormous dissimilar customers. It enables firms to tailor better marketing mix for definite specific target markets (Gupta, et al. 2005). For a segment to be profitable, it must be measurable, differently respond to a given marketing mix, easily accessible by communication and distribution channels, durable and substantial in the long run.
There are four most important bases on which the home health industry products and services can be segmented. They include geographic segmentation, behavioral segmentation, psychographic segmentation and demographic segmentation. Geographic segmentation encompasses offering similar marketing mix to a given region, population density and even to an individual climate. Demographic segmentation is a marketing segmentation with regard to such variables as gender, age, level of education, occupation and ethnicity. Home health industry will also employ psychographic segmentation. Basically, this is undertaken by offering similar marketing mix to the targeted market with similar values, attitudes and lifestyle. Lastly, behavioral segmentation entails full satisfaction of those customers with same usage rate and patterns, as well as brand loyalty.
As per the above segmentation undertaken by home health industry, the target markets sought are both male and female whose individual incomes range from $40,000 - $85,000. Basically, it will seek to satisfy both single and children. Those customers willing to make use of their fringe benefits offered by their employers are also sought by the home health industry. Major targeted customers are corporate employees and manufacturing employees. They form most profitable for home health industry. 60% and 55% of the industry population are female and male. This therefore implies that the home health industry will be able to have a larger market share as compared to the competitors hence profitability. 70% of the industry population is singe with only 30% married. This also offers larger market share as the target market is unmarried and children ( Ries and Trout, 1981).
Home health industry will position itself by creating an image and brand identity for its product or services. The major competitors are the Better Bodies Health Services and the Soul Pit Health Services. Better Bodies Health Services brand identity and image are casual fitness-seekers’ provider. Soul Pit Health Services on the other hand has brand image of offering their services to higher income families. Home health industry will position itself in the market by offering wellness strategies to individuals and families of middle income. It combines both health promotion and physical fitness. The keys to its success are: lowering overall costs, totally customized solution for each individual as well as each child living in the industry. Its result oriented strategy enables it offer solutions to each and every customer’s needs. It believes in offering convenience services to its needs. It will position itself as the most effective health service provider.
Reference
Ries, A. and Trout,J. (1981). Positioning, The battle for your mind, Warner Books - McGraw-Hill Inc., New York.
Gupta, et al. (2005). Managing Customers as Investments: The Strategic Value of Customers in the Long Run. Upper Saddle River, NJ: Pearson Education/Wharton School Publishing.
Goldstein, D. (2007). “What is Customer Segmentation?” New York, NY. Retrieved at http://www.mindofmarketing.net/2007/05/customer-segmentation-why-exactly-does.html

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