Understanding the market in which a company is attempting to operate is hugely important. Without a solid comprehension of the market segment that a given product is aimed at, marketers will have little success with their products. Market segmentation allows companies to target specific market groups and tailor their products accordingly. This sample essay provides an example of how the writing process works at Ultius.
Market segmentation and strategies to individualize sales
Companies and corporations effectively assess the needs and want of consumers through the usage of target marketing. Target marketing includes the activity of market segmentation, which allows companies and corporations to zoom in on specific customer behaviors and analyze segments that have certain needs. Companies and corporations tend to create different types of marketing strategies associated with that market segment in accordance with a myriad of variables.
Variables included in market segmentation
Market segmentation variables include:
- Geographic region
- Behavioral attitude
- Psychographic segment
One company that uses market segmentation is BlueCross BlueShield Association. The company provides financial coverage for hospital and physicians services. Two variables associated with BlueCross BlueShield Association are the use of density and geographic location. BlueCross BlueShield Association comprises organizations and companies in the United States that provide health insurance to roughly 99 million Americans.
Started in 1929, the company has becomes associated with health insurance and for meeting certain standards associated with exceptional medical care. Blue Cross is the name associated with medical care plans in the United States, while Blue Shield focuses primarily on physician services. In 1929, Blue Shield merged with Blue Cross, (“BlueCross Blue Shield Association,” 2013) and formed the conglomerate.
Understanding market segments by region
In analyzing the first variable, region, one of the largest managed healthcare companies that is for-profit that is run by BlueCross BlueShield is WellPoint, which serves members of 14 states that include:
- California
- Colorado
- Connecticut
- Georgia
- Indiana
- Kentucky
- Maine
- Missouri
- Nevada
- New Hampshire
- New York
- Ohio
- Virginia
- Wisconsin
BlueCross BlueShield has to appeal to these sectors of the populace through a different means because of the mission and values associated with WellPoint:
"Improving the lives of people and serving the health of communities in through putting the customer first, having integrity, being personally accountable for excellence, having one company one team and continually improving in service" ("WellPoint," 2013).
BlueCross BlueShield Association has to continue to ensure its healthcare technology is operating independently of other BlueCross BlueShield companies with regard to its products and services and customer segments (i.e. national accounts, local groups, Medicare programs, Medicaid offerings, and specialty products).
BlueCross Blue Shield market density
In understanding another market segment variable associated with BlueCross BlueShield Association is density. Density relates to the specific population targeted areas (i.e. rural, suburban and urban). To further assess the density variable, urban areas were examined. Since its inception, BlueCross Blue Shield Association has been committed to providing healthcare options to areas of all kinds.
Through the usage of its blue distinction that "aids consumers and employers in choosing high-performing hospitals and physicians,” the company has continued to create marketing campaigns designed to advance cost-efficient care in urban neighborhoods in addition to a superb expertise that is distinguished and well-known nationally.
In spite of a change dynamic in the health care arena, the distinction has held in urban areas and has been recognized as having an exceptional quality to even be considered worthy of designation ("Blue Cross Blue Shield Association," 2013). Research has consistently shown that BlueCross BlueShield has helped urban communities make informed healthcare decisions that are objective and improve the quality of healthcare needed and received.
Conclusion
Market segmentation allows for customer retention and addresses the needs of the consumer in an efficient approach. The healthcare arena is able to decide in a cost-effective manner how best to appeal to certain segments of the population. The BlueCross BlueShield Association continues to promote and distribute stability in healthcare services in a way that is consistent with the markets they are appealing to.
References
Blue Cross Blue Shield Association. (2013). Retrieved March 15, 2013, from Blue Cross and Blue Shield Association website: http://www.bcbs.com/
Fortenberry, J. L. (2012). Nonprofit Marketing (1st ed.). Jones & Bartlett Learning.
WellPoint. (2013). Retrieved March 15, 2013, from WellPoint, Inc. website: http://www.wellpoint.com/index.htm