Target Markets

Description

The value positioning process identifies the markets targeted by the business in order to create wealth. The value measurement sets key performance indicators to determine if the target markets are being reached as planned.

The value delivery process aligns the value offering with particular market segments. The value delivery process sets the way in which the markets will be segmented on a micro scale The value deliver determines the optimal distribution channels and locations for delivering value to customers and sets the price at which goods and services will be delivered.

Various methods exist for segmenting markets so that a business can distinguish its value offering for specific groups of customers. Some models uses geography as a means of segmenting the markets e.g. people living near the coast are more likely to buy surf boards than people living deeper inland. Other market segment methods will look at factors like age or income. The segmentation is not one dimensional but might consider a whole group of factors. The purpose of targeting markets is to customise the value offering to the most probable expectation of the customer in that market segment.
Any enterprise wide transformation program must consider the impact of that transformation on all the targeted market segments. The net result of an enterprise wide transformation programme must be that the business will be better positioned within its targeted markets

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