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

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  • JOHANNES HENDRIK VISSER

    (University of South Africa, South Africa)

Abstract

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.

Suggested Citation

  • Johannes Hendrik Visser, 2016. "Bases of Market Segmentation Success: A Marketing Decision Makers' Perspective," International Journal of Business and Administrative Studies, Professor Dr. Bahaudin G. Mujtaba, vol. 2(3), pages 75-80.
  • Handle: RePEc:apa:ijbaas:2016:p:75-80
    DOI: 10.20469/ijbas.2.10004-3
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    References listed on IDEAS

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    1. Hakansson, Hakan & Ford, David, 2002. "How should companies interact in business networks?," Journal of Business Research, Elsevier, vol. 55(2), pages 133-139, February.
    2. Paul Millier, 2000. "Intuition can help segmenting industrial markets," Post-Print hal-02311649, HAL.
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    Cited by:

    1. Fatin Nabilla, 2019. "Advertising Attitude, Green Purchase Intention and Environmental Concern: Promoting Functional Versus Emotional Appeals," International Journal of Business and Administrative Studies, Professor Dr. Bahaudin G. Mujtaba, vol. 5(4), pages 199-223.
    2. Yagoub Asma & Benlakhdar Mohamed Larbi & Bouanini Samiha, 2017. "The Role of the Dashboard in Improving Marketing Decisions in the Algerian Economic Firm," International Journal of Business and Administrative Studies, Professor Dr. Bahaudin G. Mujtaba, vol. 3(6), pages 209-216.
    3. Alexandra Albon & Patricia Kraft & Carsten Rennhak, 2018. "A structural model of millennial tourist behavior towards tourism in Davao Region," Journal of Advances in Humanities and Social Sciences, Dr. Yi-Hsing Hsieh, vol. 4(1), pages 37-50.

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