Traditionally we have learned that market segmentation is to identify parts of the market that are distinct from each other. The segmentation allows a company to better meet the needs of potential customers.
The definition gives us Goldratt on "segmentation" is a bit different from what we learned in college and in my opinion, it is also far more advantageous. A segmented market is considered if and only if the price and quantity of a product sold in a 'segment' of the market is not affected by the price and quantity sold in another 'segment' market. Therefore, segmentation is not simply to cram a niche market.
Here is an example. Suppose we supply PVC pipe both hardware, construction, irrigation systems, etc. Traditionally considered construction firms as a homogeneous segment of the market and offer the same conditions of service, price and quantities for any of these companies. Is there any way we can target more than the market for construction companies? What if a builder competes with other children based on time of execution of works and improved management of inputs to each work? Can we make a difference in price supply service to that building?
One of the fundamental rules regarding this issue is that the company should "segment their markets, not resources" . This statement is a call to establish the required flexibility to use our resources - human, technological, financial, infrastructure - in each market segment as it suits us. In fact, this flexibility is the only strategy that provides a rational perspective of long-term perpetuated an ever more surprising, more uncertain and more globalized. Today
need to operate in as many separate segments can successfully meet our production capacity - some suggest that we should have more than 15 segments, so that the declining sales in some countries is offset by income obtained in others - but this obviously must be considered in terms of strategy and entrepreneurship. We seek to protect not only the benefits of the company, but also the jobs of people working for it.
Practitioners Management of Constraints (TOC practitioners) believe that the combination of "irresistible offers" - offers designed to greatly increase the market perception of the value of our product / service - and "segmentation" - understood as we have stated here - any organization can ensure a more or less long - more than four years - economic boom. Once designed the irresistible offer, it should be placed so as to ensure proper market segmentation.
Also consider the following tips for Constraint Management in relation to the strategy in the market
- refrain from seeking 100% of any market segment, unless it is extremely lucrative;
- consider only those new products / services using resources already available;
- to organize your "portfolio" of market segments, opt for a combination that reduce or avoid risk for your company to meet a series of large and widespread reduction;
- concentrate on improving a single attribute of your product or service in several degrees of magnitude above its competition, so that provides a competitive advantage hardly imitable in the short term - for example, have an average response time that is four or five times faster than its main competitor.
- NEVER compete based on offering lower prices even if your competition is from China.
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