HBR: Market Segmentation, Target Market Selection, and Positioning

I learned a few concepts related to market segmentation, target market selection and positioning in this article. The two types of segmentation are (i) segmentation based on benefits sought by customers; (ii) segmentation based on observable characteristics of customers. Differentiation is the key to target market selection, and the five areas which includes (1) ability to conceive and design; (2) ability to produce (quality and quantity); (3) ability to market; (4) ability to finance; (5) ability to manage/execute is completely new to me. In term of differentiation, horizontal differentiation uses the fact that consumers differ in their tastes. Identifying group(s) whose need(s) are not sufficiently served by a competitor should be a strategy which a firm pursue for horizontal differentiation. In vertical differentiation, it assumes consumers consumer's is willing to pay for quality. As a result, firm pursuing vertical differentiation should position products to customers with a specific level of willingness to pay for quality that is not sufficiently served by a competitor.

In order to find out whether any of the concepts discussed in the HBR article been applied to the field of library and information sciences, I performed an internet search and found a whitepaper by CIVICTechnologies . Part of the paper stated how market segmentation can be useful for libraries:

• To offer their small businesses, entry-level entrepreneurs, and non-profits a tool to find new customers, retain existing customers, improve profitability, find the best location for their business, and develop new products and services appropriate to their market.
• For use by students to support research and class projects and to prepare students to use market segmentation in their chosen profession.
• For use by the public library itself to improve services by better engaging library users and those who don't yet use the library.

While it is beneficial to learn about how the concepts applied to libraries in general, I would like to learn more on it's application to medium size academic libraries.