Customer Segmentation Analysis in Major Sporting Goods Companies and its Influence on Strategic Marketing Decisions

Abstract

This article critically reviews the use of customer segmentation in distribution channels as an analytical instrument to support strategic marketing decisions. Major sporting goods companies with a very fragmented distribution system have been selected as sampling group. With access to the top management, this article gives insight into decision processes and strategies in the sporting goods industry. The study focuses on the analysis of an existing customer portfolio as well as on the future development of individual segments. The research exceeds the reduction of customer segmentation to a “marketing strategy” by showing the impact on structural and strategic decisions of corporations. Thus the scope of this study amplifies considerably the common definitions and objectives of the customer segmentation concept and implicates the deduction of a strategic target as assumed. A qualitative exploratory research design has been chosen and the gained information has been processed with personal in-depth interviews to gather reliable primary data. The findings illustrate that converting customer segmentation into a set of mid-term marketing decisions offers potential for improvement. Marketing and global strategic decisions as well as change management requirements in the sporting goods industry may benefit from this research in adapting their focus.