MARKET SEGMENTATION: ORGANISATIONAL ARCHETYPES AND RESEARCH AGENDAS*
Mark Jenkins & Professor Malcolm McDonald Cranfield School of Management
Address for correspondence: Mark Jenkins, Cranfield School of Management, Cranfield University, Bedford, MK43 0AL, UK. Tel: +44 (0) 234 751122; Fax: +44 (0) 234 750070 EMail: m.jenkins@cranfield.ac.uk
Paper submitted to the European Journal of Marketing, February 1995. The authors acknowledge the invaluable comments of Professor Martin Christopher and the anonymous referees on earlier drafts of this paper.
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MARKET SEGMENTATION: ORGANISATIONAL ARCHETYPES AND RESEARCH AGENDAS
Summary
The study of how organisations segment their markets has traditionally taken a prescriptive and analytical
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If the broad market definition requires an understanding of the organisation's capabilities, then should this not also be reflected in the definition of market segments? Secondly, segmentation may also be viewed as a perspective, a way of seeing the
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market space, as opposed to a proactive process requiring empirical analysis. In this regard organisations can be said to implicitly segment the market into various groups as a way of 'making sense' of their environment. Conventional segmentation theory has, therefore, been founded on conceptual, rather than empirical evidence, based on how organisations should segment their markets, rather than considering how they actually construct homogeneity in the market place. Such frameworks are of undoubted value, but have been criticised for failing to consider the practical issues of how these concepts are implemented in practice within organisations [18]. One potential reason for the evident gap between theory and practice is the prescriptive and analytical approach taken in the literature. A counter-view is expressed by Knight [19] who, as a practising marketing consultant, considers that the market definition of many organisations is often a function of internal factors such as organisational culture and processes: "The idea of markets should be a construct which enables us to simplify and therefore observe and predict consumer behaviour. The practice, however, too often reflects the company's internal issues and
| According to the text, market segmentation is defined as identifying groups of consumers based on their common needs.Answer
Brown, T. (2014). Basic Marketing Research, 8e, 8th Edition. [VitalSource Bookshelf version]. Retrieved from http://online.vitalsource.com/books/9781305178571/page/24
According to Horner and Swarbrooke (2005: 39), Segmentation may be defined as the process of dividing a whole market into subgroups or segments for marketing management purposes. Market segmentation is the division of the overall market for a service into various categories with common characteristics. In response to different segments, organisations facilitate the available resources to achieve greater efficiency, in order to satisfy specific needs of customers.
Organizations usually employ market segmentation in competitive markets for appropriate targeting of customers. This paper provides an analysis of how market segmentation can be utilized for competitive advantage as well as the need for ensuring diversification for sustainable growth.
In order to market the product into the market successfully, marketers need to have some marketing strategy to enter the desired market and make profit. Market segmentation is the process of dividing a market into subsets of consumers with common needs or characteristics (Schiffman et al., 2011). Understanding the market size and segmentation is valuable, but the keys to effective targeting is to know just how valuable specific consumer groups are, and being able to quantify the impact of consumer trends ( Berry, 1999).
Market segmentation is a marketing strategy that involves dividing a broad target market into subsets of consumers who have common needs and applications
- Marketing Segmentation: is the process that companies use to divide large heterogeneous markets into small markets that can be reached more efficiently and effectively with products and services that match
Armstrong, G., Adam, S., Denize, S., & Kotler, P. (2012). Principles of Marketing. Frenchs Forest: Pearson Australia.
Armstrong, G. Brown, L. Burton, S. Deans, K., & Kotler, P. (2010). Marketing (pp. 4-40). New South Wales: Pearson
This dissertation is submitted in partial fulfillment of the requirements for the Degree in Marketing Practice
‘’organisations exist and function within society and consequently are subject to a variety of social influences. These influences, which include demography, social class and culture, can change over time and affect both the demand and supply side of the economy. Marketing organisations recognise and make use of these factors when segmenting markets for consumer goods and service’’ Worthington, I (2009) p.135.
Market segmentation is an approach used by a company to select their target market and provide data for a marketing plan. “Market segmentation consist of a two-step process; naming broad product markets and segmenting these broad products-markets in order to select target markets and develop suitable marketing mixes” (Perreault, Cannon, & McCarthy, 2014, p.97). There are 4 categories pertaining to market segmentation; behavioral, geographic, demographic, and behavioral.
The world is made up of different people, therefore segmentation provides consumers products that fulfil their individual needs. Martin (2011) states that companies have to try different segmentation variables either alone or in combination because often the best choices arise from using various strategies. There are few ways to segment a market, therefore, companies must think innovatively and be willing to re-segment if needed.
‘Market segmentation represents an effort to identify and catergorise groups of customers and countries according to common characteristics’ (Keegan and Green 2016, p.228). For any business, it is crucial that they segment their market accordingly or they will risk forgoing sales opportunities. Fahy and Jobber (2015) identify the objective of market segmentation as distinguishing groups of customers with similar requirements so
“A task force concluded, the past segmentation did not fully address the emerging shift in customer needs” “(Xiameter Case Study). Dow Corning had to thus try different segmentation variables, alone and in combination to find the best way to view the market structure. (Kotler et al, 2008).