Market Segmentation, Targeting, Positioning and Competition

Market Segmentation, Targeting, Positioning and Competition

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Market Segmentation, Targeting, Positioning and Competition

Organizations may not have the capacity to meet all the needs and desires of all their consumers as it may be hard to meet the specific desires of each single consumer. Individuals have different tastes and preferences; therefore, a single product hardly fulfills everyone’s needs wholly. As a result, a lot of organizations generally adopt a policy which involves dividing the market into segments and as soon as the segments are known there is need to tailor their products to satisfy each segment accordingly. This paper is going to focus on market segmentation of UnitedHealth Group Inc. and enlightens exactly how it could choose the most effective segment as it employs market coverage, positioning policies and competition. UnitedHealth Group Inc. provides health care products and services to a lot of people and it focuses on assisting people live healthier lives.

Variables which can be used for market segmentation can be categorized into five major categories which are: demographic, geographic, psychographic, behavioral and product-related factor. Demographic involves dividing the market according to race, earnings, sex, age, religion and family size. For example, UnitedHealth under their ovation health care segment offers health services for Americans above 50 years focusing on their special needs such as chronic illnesses and responding to specialized treatment when it arises.

Geographic segmentation divides the market according to the location of potential customers. The market can be distributed by geographical areas such state, city, region, country and international region. AmeriChoice segment under UnitedHealth Group works with specific states in America to respond to the most medically susceptible people, furthermore it offers health insurance cover to the same people in the selected states. This segmentation enables the company to reach out to a lot of people across the country.

A SWOT analysis is a tool that can be used by UnitedHealth Group to identify areas they are doing well and those that need improvement by analyzing their competitor’s strengths, weaknesses, opportunities and threats. For example, if the employees of the competitors have customer-friendly traits, then the organization should consider training its employees to have such kind of attributes in order to attract customer’s .SWOT is key in analyzing the competitor’s strengths, weaknesses, opportunities and threats.

References

Chaudhuri, A. R. (2014). The Journal of Industrial Economics. Cross-Border Mergers and Market Segmentation, 62(2)229-235.