Handbook of Market Segmentation: Strategic Targeting for Business and Technology Firms, Third Edition

by Weinstein, Art

• ISBN13: 9780789021571
• ISBN10: 0789021579
• eBook ISBN(s): 9781135185657
• Additional ISBN(s): 9781135185657
• Edition: 3rd
• Format: Paperback
• Copyright: 2004-04-20
• Publisher: Routledge

Summary

Develop a successful strategy for segmenting high-tech and industrial markets! Whether it's due to a lack of focus, lack of time, or just bad planning, most companies fall short of the mark in their target marketing. The Handbook of Market Segmentation, 3rd Edition: Strategic Target Marketing for Business and Technology Firms is a practical, how-to guide to what marketers need to know about defining, segmenting, and targeting business markets: assessing customer needs; gauging the competition; designing winning strategies; and maximizing corporate resources. The latest edition of this marketing classic combines content and features from the previous editions with an emphasis on successful practices in business-to-business and high-tech segmentation. This valuable research source puts the latest thinking from the business and academic communities at your fingertips. From the author: The most important thing I've learned from working in market segmentation research and strategy for more than 15 years is that few companies get the most from their target marketing. Their top executives advocate the need to be market- or customer-oriented but base their marketing plans on cursory, incomplete, or emotional analyses. They end up with 'fuzzy' business missions, unclear objectives, information that isn't decision-oriented, unfocused promotional strategies, and no real plan to attack niche markets. This happens because they haven't developed an effective strategy for segmenting high-tech and industrial markets. They don't have a process that introduces and improves their business segmentation planning and execution. What they need is a handbook for improving their organization's performance in new and existing business markets. Handbook of Market Segmentation, Third Edition: Strategic Target Marketing for Business and Technology Firm is a state-of-the-art guide to market identification, analysis, selection, and strategy. The book is organized into four parts (segmentation planning, business segmentation bases, implementing segmentation strategy, segmentation strategy cases) and includes applications, case studies, checklists, figures, and tables. Each chapter features a Segmentation Skillbuilder (a field-tested exercise that improves your working knowledge of key business-to-business segmentation topics) and a Business Segmentation Insight (an in-depth look at a key segmentation issue). Handbook of Market Segmentation, Third Edition: Strategic Target Marketing for Business and Technology Firms examines: how to conduct effective, cost-efficient, and profitable segmentation studies segmentation options such as differentiation and niche marketing defining business markets a 10-point program for segmenting business markets (planning and research) business segmentation bases (geographics, firmographics, benefits, usage, purchasing behavior) how North American Industrial Classification System (NAICS) has replaced SIC analysis criteria for choosing target markets implementing segmentation in business organizations how to conduct (and benefit from) a segmentation audit detailed segmentation studies on six companies--Collins Aviation Services, Dev-Soft, Dow Corning, Lexmark International, Pharmacia Corporation, and Sportmed and much more! Handbook of Market Segmentation, Third Edition: Strategic Target Marketing for Business and Technology Firms is an essential resource for business professionals working in the high-tech, industrial, and business service industries, and for educators training the next generation of marketers, managers, and strategists.

Author Biography

Art Weinstein is Professor and Chair of Marketing in the H. Wayne Huizenga School of Business and Entrepreneurship at Nova Southeastern University in Fort Lauderdale, Florida. He teaches graduate courses in customer value, international marketing, managerial marketing and research, and market segmentation.

Table of Contents

Preface	xiii
Acknowledgments	xvii
PART I: SEGMENTATION PLANNING
Chapter 1. Market Segmentation: An Overview	3	(18)
Segmentation: The Key to Marketing Success	4	(1)
Segmentation in Action	5	(2)
Segmentation Options	7	(5)
Business Segmentation Insight 1: Segmentation Research Findings in High-Tech and Industrial Markets	8	(4)
Nichemanship: Segmented Marketing at Its Best	12	(3)
The Benefits of Segmentation	15	(1)
Limitations of Segmentation	16	(2)
Segmentation Skillbuilder 1: How Well Is Your Company Using Segmentation Techniques?	17	(1)
Segmentation: Some Misunderstandings Resolved	18	(1)
Summary	19	(2)
Chapter 2. Market Definition and Segmentation in B2B Markets	21	(12)
The Market Definition Challenge	21	(5)
Business Segmentation Insight 2: Mission, Vision, and Market Definition	24	(2)
A Strategic Market Definition Framework	26	(4)
Market Definition Applications Based on the Framework	30	(1)
Segmentation Skillbuilder 2: Defining Your Market-A Three-Level Approach	31	(1)
Summary	31	(2)
Chapter 3. Segmentation Planning and Research Guidelines for Business Marketers	33	(28)
Segmentation Roadblocks	34	(2)
Using Planning and Research to Segment Business Markets: A Ten-Point Program	36	(18)
Segmentation Skillbuilder 3: Designing the Segmentation Study	50	(1)
Business Segmentation Insight 3: Segmentation Research An Assessment	51	(3)
Summary	54	(1)
Appendix: Internet Segmentation-Business Marketing Applications	54	(7)
PART II: BUSINESS SEGMENTATION BASES
Chapter 4. Geographies and Firmographics	61	(20)
Geographic Segmentation Bases	62	(6)
Segmentation Skillbuilder 4: Defining Geographic Markets	66	(1)
Business Segmentation Insight 4: How a Major Pharmaceutical Company Uses Geographic Sales Analysis to Segment Its Markets	66	(2)
Tapping Census Products for Geographies and Business Demographics	68	(3)
Firmographics	71	(6)
Summary	77	(4)
Chapter 5. Usage Analysis	81	(16)
End Use Analysis	82	(1)
Usage Segmentation	83	(3)
Conceptualizing and Operationalizing Usage Dimensions	86	(5)
Business Segmentation Insight 5: Usage Segmentation Applications	89	(2)
Assessment of the Usage Dimension	91	(3)
Segmentation Skillbuilder 5: Usage Analysis-Key Issues	93	(1)
Summary	94	(3)
Chapter 6. Benefit Segmentation	97	(16)
Concepts and Applications of Benefit Segmentation	98	(5)
Business Segmentation Insight 6: Customer Value and Benefits	101	(2)
Pros and Cons of Benefit Segmentation	103	(2)
Three Brief Examples of Benefit Segmentation in Business Markets	105	(3)
Segmentation Skillbuilder 6: Using Segmentation Grids to Identify Benefit Segments for Your Company	106	(2)
Summary	108	(5)
Chapter 7. Purchasing Behavior and Organizational Psychographics	113	(20)
How Business Markets Are Different	113	(3)
The Nested Approach	116	(4)
Business Segmentation Insight 7: In Conversation with Dr. Benson P. Shapiro	119	(1)
Segmentation Skillbuilder 7: Using the Nested Approach to Segment Your Market	120	(1)
Business Psychographics	120	(7)
Buyer Adopter Categories	127	(3)
Summary	130	(3)
PART III: IMPLEMENTING SEGMENTATION STRATEGY
Chapter 8. Strategic Target Marketing	133	(22)
Target Market Strategy Formulation	134	(1)
The Three Basic Steps to Strategy Formulation	135	(5)
Business Segmentation Insight 8: Guidelines on Market Segment Attractiveness	138	(2)
Segmentation Strategy Development	140	(3)
Business Segmentation and the Marketing Mix	143	(10)
Segmentation Skillbuilder 8: Target Market Strategy Worksheet	144	(9)
Target Market Strategy: An Application	153	(1)
Summary	153	(2)
Chapter 9. Enhancing Segmentation's Value	155	(18)
Creating a Segmentation-Driven Organization	155	(3)
Business Segmentation Insight 9: How High-Tech Business Cultures Impact Segmentation Strategy	157	(1)
Strategic Segmentation and Implementation Considerations	158	(3)
The Segmentation Audit	161	(4)
Segmentation Skillbuilder 9: Segmentation Implementation Questions	162	(3)
Twenty-First-Century B2B Segmentation: A Look Back, a Look Ahead	165	(5)
Summary	170	(3)
PART IV: SEGMENTATION STRATEGY CASES
Case 1. Collins Aviation Services: Building a Cluster-Based Segmentation Model	173	(10)
Market Definition and Segmentation	173	(4)
Recommended Segmentation by Loyalty-Based Characteristics	177	(1)
Segmentation Applied to Date	178	(2)
End-of-Case Questions	180	(1)
Suggested Readings	180	(3)
Case 2. Dev-Soft S.A.: Segmentation and Distribution in Europe	183	(10)
Company Background	183	(2)
Industrial Software Sector	185	(1)
Dev-Soft's Product Lines and Preliminary Distribution Channels	185	(1)
Segmenting the Software Market	186	(3)
Target Market Selection	189	(1)
Revising the Distribution Strategy	190	(1)
Risks and Challenges	191	(1)
End-of-Case Questions	192	(1)
Suggested Readings	192	(1)
Case 3. Dow Corning: Segmentation and Customer Value	193	(8)
Change in the Market Situation for Dow Corning	194	(1)
How Did Dow Corning Tackle This Challenge?	195	(2)
Value-Based Marketing at Dow Corning: Discovering and Understanding the Customer	197	(2)
End-of-Case Questions	199	(1)
Suggested Readings	199	(2)
Case 4. Lexmark International: Creating New Market Space	201	(10)
Introduction	201	(1)
What Is New Market Space?	202	(2)
Lexmark International: NMS As a Competitive Marketing Tool	204	(3)
Lexmark and New Market Space: Some Lessons Learned	207	(1)
Future Prospects	208	(1)
End-of-Case Questions	209	(1)
Suggested Readings	209	(2)
Case 5. Pharmacia Corporation: Pharmaceutical Segmentation	211	(8)
Industry Overview	211	(1)
Brief History	211	(1)
Industry Challenges and Market Segmentation	212	(2)
Pharmaceutical Segmentation Bases	214	(1)
An Rx for Pharmaceutical Segmentation	215	(1)
End-of-Case Questions	216	(1)
Suggested Readings	216	(3)
Case 6. Sportmed: Market Definition and Benefit Segmentation	219	(6)
Sportmed's Customers	219	(1)
Sportmed's Market Definition	220	(1)
Extending the Market Definition Analysis	221	(1)
Strategic Marketing Considerations	222	(1)
End-of-Case Questions	223	(1)
Suggested Readings	223	(2)
Notes	225	(8)
Index	233