"When I was about eleven years old, I remember a specific conversation I had with my father. I sat quiet while he talked about our family's Italian heritage and the origin of our last name, DeLeo. De - Leo: The - Lion. Simple enough, makes sense. What characteristics come to your mind when you think about the embodiment of a lion? I think of wisdom, respect, courage, beauty, strength, unity, and passion. Once I learned of this connection, I took a lot of pride in my last name and the characteristics it symbolized. To this day, I dedicate to live every aspect of my life with the heart of a lion."

Wednesday, February 15, 2012

Market Segmentation

This week in both MQM 385 and MKT 338 we talked about market segmentation.  Segments are the different areas within an industry that companies can focus on when developing products.  For example, a company like Ford can create automobiles with an emphasis on gas mileage[sedan], storage[SUV], or terrain/utility[truck].  Trucks, SUVs, and sedans are all different segments of the automobile industry.  In order to succeed companies typically need to focus on one segment within their industry.  While it is typical for organizations to be involved in more than one segment, top organizations put an emphasis on the segment where they have the most strength. 

This strength, other wise known as their core competencies, is an evaluation of their abilities and position amongst competitors.  Professor Foreman explained core competencies as, "More like direct competencies.  It can not just be the strengths of your organization or the items you are the best at.  Competencies need to be what you do above and beyond your competitor.  That way you gain competitive advantage."  Being able to sustain a competitive advantage is what will make your organization profitable and gain overall market share. 
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