Implementation of new segments in small- and medium-sized enterprises (SMEs)

Abstract

PurposeSuccessful segmentation and implementation are crucial for firms. This paper aims to focus on what areas small- and medium-sized enterprises (SMEs) consider when implementing new target segments in the organization. If firms do not understand the potential complexity and plan for implementation, they risk overlooking important areas that cause organizational resistance and failure in the market.Design/methodology/approachThis paper builds on a literature study and five SME case studies based on 44 interviews and 10 intervention workshops.FindingsThe authors identify key areas of change that SMEs consider when planning to implement segments in the organization, including marketing strategy and plans, organizational aspects and implementation processes. Organization changes and sales plays are key considerations among SME managers. The authors further identify four categories characterized by different degrees of marketing and organizational changes that SMEs face when implementing new target segments, reflecting SMEs former choices.Research limitations/implicationsThis research is based on interviews and workshops that bring managers into a situation where they can evaluate needed changes to implement segments. The managers can express the complexity and the effect of the implementation.Practical implicationsThis paper presents considerations and insights derived from SMEs and discusses how firms can be better equipped to implement new segments.Originality/valueThis paper offers new insights and directions for segmentation literature, focusing on implementation and proposing how to advance the segmentation literature.