Balancing theory and practice: a reappraisal of business-to-business segmentation
Article Abstract:
The article reviews some current guidance on when and how to segment business-to-business markets. It evaluates traditional segmentation processes and the variables usually recommended. Several important issues are highlighted including: the limitations of current definitions; the continuing tension between theoretically meaningful and managerially possible segmentation methods, and the difficulties in using product benefits as opposed to customer needs as a basis for segmentation. The paper proposes a new comprehensive definition of segmentation and a more balanced marketing-orientated approach to the process. We conclude that the appropriate approach to segmentation in business-to-business markets is governed by the objectives of the organizations involved and by prevailing investment priorities and competitive tensions, rather than by the idealistic recommendations of marketing theory always to focus exclusively on customer needs. The implications for managers and for future research are discussed. (Reprinted by permission of the publisher.)
Publication Name: Industrial Marketing Management
Subject: Business, international
ISSN: 0019-8501
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
Benefit segmentation for industrial products
Article Abstract:
Operationalizing the segmentation concept for industrial products and making the segmentation research strategically relevant constitute a formidable challenge for marketing researchers and practitioners alike. This paper attempts to identify why many existing approaches to this question frequently lack operational meaning and strategic relevance. Next, a simple but practical benefit segmentation scheme is described which assists marketing managers in strategy formulation. The model is illustrated with a detailed case study of the air compressor market. (Reprinted by permission of the publisher.)
Publication Name: Industrial Marketing Management
Subject: Business, international
ISSN: 0019-8501
Year: 1986
User Contributions:
Comment about this article or add new information about this topic:
An approach to industrial market segmentation
Article Abstract:
Models of industrial market segmentation have been criticized for not considering managerial requirements and implementation issues. A new model is proposed which incorporates these issues by considering controllable marketing variables in identifying macrosegments. This is effective because the goal of industrial market segmentation is not always to look for homogeneous markets, but rather homogeneous responses to marketing stimuli. The application of the approach to a specific market (industrial transmissions) is provided as an example. (Reprinted by permission of the publisher.)
Publication Name: Industrial Marketing Management
Subject: Business, international
ISSN: 0019-8501
Year: 1991
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Customer profitability: prospective vs. retrospective approaches in a business-to-business setting. The initiators of changes in customers' desired value: results from a theory building study
- Abstracts: Japanese joint ventures in the USA. Future trends in Japanese overseas investment. The pattern of Japanese multinational investment
- Abstracts: Making the grades. The Maltese Falcon of lateral thinking. Turning a book into an industry, or, how to make an Excellent living
- Abstracts: The risk business. Healthy skepticism. The executive ailment: 'curable only by death'
- Abstracts: The soaring demand for global training. Ousted chairman recalls turbulence of managing change at Thorn EMI. European presidents at work and at play among the splendours of Villa d'Este