Market Segmentation Practices Research Articles

Bases of Market Segmentation Success: A Marketing Decision Makers’ Perspective

Market segmentation is an important instrument in strategic marketing and regarded as a key element of marketing strategy (Palmer & Millier, 2004; Hooley, Piercy & Nicoulaud 2012). It is viewed as a basis for superior financial performance (Cravens & Piercy, 2013). In marketing literature, it is often also referred to as marketings Segmentation, Targeting and Positioning (STP) process. For a while now, there is criticism against market segmentations usefulness to marketing practitioners by marketing academics. For instance, Foedermayr and Diamantopoulos’ (2008) analysis of market segmentation practices indicated a need for market segmentation research that could be generalized with more confidence. Their literature review revealed that most segmentation research deals with how it should be done and not with how it is actually done. Reibstein, Day and Wind, (2009) asserted that marketing academics neglect to develop applicable models for critical and strategic marketing issues have created a vacuum between academics and their marketing counterparts in practice. In a sense it also marginalized marketing as a discipline that should add value to executives who are looking for solutions to the problems they face in a fast changing market space. After his research Quinn (2009) concluded that there is little practical advice in marketing literature for marketers on how to choose variables, identify segments, controlling performance in segments or how to follow a process in doing all this. The research was based on segmentation practices from apparel retail managers in the United Kingdom. Lastly, Harrison and Kjellberg (2010) concluded that there could be other ways to segment markets than what the segmentation process literature suggests. While marketing theory suggests that market segmentation is a determinant of marketing success, it is not clear to what extent marketing decision makers share this sentiment. The most pertinent finding of the review in this paper is that there is no uniform way of market segmentation that can be used by marketers. Marketing academics have, for some time now, urged their colleagues to come up with research that will be useful for marketing practitioners.

A Study of use and Impact of Market Segmentation Practices on Bank Performance: With Special Reference to Commercial Banks in Colombia

The Banking and Financial Environment in Colombia has witnessed so many regulatory changes and competitive dynamics. This has made segmentation practices an imperative determinant in their service offering and development to its complex customers. Approach: This study assessed the use and impact of market segmentation patterns and practices on the performance of selected banks in Colombia, post consolidation period of 2012 to date. The methods applied were both primary and secondary while the design was mainly exploratory, relating basic market segmentation variables like market share, geographical location and pricing to bank performance. Statistical test using Herfindal Hirchman Index (HHI) was designed to test for market concentration against bank’s performance. Objective: The idea behind this research was to assist managers, business students, and banking workers to understand the concept and impacts of marketing segmentation patterns and practices on banks performance. Results: Findings from the study indicate that, segmentation practices have immensely impacted on the performance of the selected banks in Colombia. The study exposed that the banks have used segmentation practices to lower their overall operation unit cost, expand their market shares, retain their customers, better their communications, increase profitability and focus on their company. They are well positioned in capital strength and they are the best capitalized banks in Colombia, thanks to their segmentation strategy called data-informed strategy. Conclusion: The study however concluded that there is a threshold point (37.2%) in which any further commitment of funds into market segmentation practice can lead to negative result. Recommendation: It was recommended that less dominated banks can adopt acceptable corporate image, simple and flexible account opening formalities, just-in-time service delivery, employee-customer management, and effective and efficient use of referrals to win customer loyalty which tend to retain old customers and win new customers as well.

Examining the influence of relationship to disability on the motivations of wheelchair basketball spectators

Abstract Participation and interest in disability sport has grown tremendously, resulting in expansion of the responsibilities of promoters of adaptive sport. Prior research has provided insight regarding consumers of disabled sport, although one factor, spectators’ relationship to disability, offers great potential for use of market segmentation practices. This research, conducted at a national wheelchair basketball event, examined differences in motivation between spectators with and without relationships to disability and between those who did or did not identify themselves as having a disability. The results of this research indicate differences in motivating factors among the groups, supporting practitioner use of market segmentation. Keywords: consumer behavior, disability sport marketing, relationship to disability

Market segmentation in managerial practice: a qualitative examination

This paper offers an examination of the ways in which managers implement market segmentation. Market segmentation practices are examined in the context of the UK apparel retail sector. A qualitative research framework, which draws on Weick's (1995a) sensemaking approach, is adopted. Managerial insights are evidenced through a key-informant interviewing method within 10 case-organisations. The results indicate a number of plausible, managerial reasons for not pursuing sophisticated segmentation solutions. An underlying issue is a widely held belief in the adequacy and manageability of gross-level, descriptive segmentation approaches. Market segmentation was also seen as a managerial concept from which to inform decision-making but not for determining it or supplanting it. Segmentation thus represents an important sensemaking tool, often for communicative purposes. According to evidence revealed in this inquiry, contemporary applications and uses of market segmentation no longer provide synergy with the methodological and conceptual foundations of the concept.

Market Segmentation in Practice: Review of Empirical Studies, Methodological Assessment, and Agenda for Future Research

Although segmentation decisions are critical for achieving differential advantage in an increasingly competitive marketplace, the empirical investigation of how segmentation decisions are actually conducted by firms in business practice has not been a major focus of extant research. Accordingly, the purpose of this paper is threefold: first, the identified empirical studies are assessed in terms of their methodological characteristics in order to establish the soundness of extant empirical evidence on firms' market segmentation practices. Second, findings relating to all stages making up the market segmentation process are reviewed and contrasted with normative segmentation literature to identify issues of agreement and divergence; discrepancies imply either lack of familiarity with and confidence in normative guidelines or difficulties with the implementation of these guidelines into actual business practice. Third, based on disclosed research gaps relating specifically to each stage of the market segmentation process, a navigation chart for future empirical research is developed to encourage further study in those areas that have been insufficiently addressed by extant research.

Export Market Segmentation Practices of Turkish Firms

ABSTRACT Very little is known about the significance of criteria commonly used for export market segmentation in Turkish firms. Therefore, there are only vague criteria for guiding the choice of criteria for export market segmentation. This study meets this need and investigates both the perceived importance levels of various types of segmentation categories and the relative importance of categories to segment potential export markets across industries and principal export destinations. The initial findings reveal that market potential/profitability/attractiveness, demand/behavioral characteristics of buyers, political/legal considerations and risk, socio-economic environment, and economic/legal constraints in a market are perceived as important categories by Turkish firms for export market segmentation. This study also provides discussion and implications.

Market segmentation practices of industrial marketers

Most of the research into market segmentation has focused on methods of positioning markets into segments and not on the practical use of market segmentation. This article discusses how a sample of 32 industrial companies in South Africa used market segmentation. A literature review of industrial market segmentation is presented. The results of this survey identified the variables used in segmenting markets, the criteria used to form segments, the criteria used to select target segments, and the marketing actions used to reach the chosen segments.

Market segmentation practices of exporting companies

The purpose of this article is to examine the marketing segmentation practices of industrial companies that are currently exporting their products. The results document a considerable amount of marketing activity both in terms of gathering information to be used when developing segmentation strategies and when varying the marketing mix elements to implement that strategy by a wide range of exporting companies.