Developing a decision tool for identifying operational and attractive segments

Research output: Contribution to journalArticle

17 Citations (Scopus)

Abstract

Although market segmentation is a well recognized and accepted aspect of marketing theory, problems for companies trying to implement the concept are not uncommon. In some companies poor understanding of basic segmentation principles is the cause. In others, industries have become geared to serving specific sectors and distribution is organized accordingly -any restructuring of the customer base would create considerable practical difficulties. Other companies complain of too few tools to help them make appropriate and effective targeting decisions. The use of boxes and matrices as an aid to strategic thinking is widespread in modern marketing and strategic planning. Amongst the more commonly cited are the Boston Consulting Group’s (BCG) Boston Box and the Directional Policy Matrix (DPM). This paper considers a new matrix, developed from the DPM, which could help consumer and industrial planners make more effective decisions about which market segments to target. The Segment Evaluation Matrix (SEM) directly tackles the issues of segment attractiveness and operational issues associated with segmentation. The matrix is demonstrated using an example from the European construction and agricultural equipment market. The strategic implications of the analysis are also explained.

Original languageEnglish
Pages (from-to)189-204
Number of pages15
JournalJournal of Strategic Marketing
Volume3
Issue number3
DOIs
Publication statusPublished - 1 Jan 1995
Externally publishedYes

Fingerprint

Segmentation
Strategic thinking
Consulting
Evaluation
Market segments
Marketing theory
Attractiveness
Industry
Market segmentation
Marketing planning
Strategic planning
Targeting

Keywords

  • Implementation
  • Market segmentation
  • Portfolio management
  • Targeting

ASJC Scopus subject areas

  • Marketing
  • Strategy and Management

Cite this

Developing a decision tool for identifying operational and attractive segments. / Dibb, Sally.

In: Journal of Strategic Marketing, Vol. 3, No. 3, 01.01.1995, p. 189-204.

Research output: Contribution to journalArticle

@article{fb6270b1f61f45e483c5d646fef28a54,
title = "Developing a decision tool for identifying operational and attractive segments",
abstract = "Although market segmentation is a well recognized and accepted aspect of marketing theory, problems for companies trying to implement the concept are not uncommon. In some companies poor understanding of basic segmentation principles is the cause. In others, industries have become geared to serving specific sectors and distribution is organized accordingly -any restructuring of the customer base would create considerable practical difficulties. Other companies complain of too few tools to help them make appropriate and effective targeting decisions. The use of boxes and matrices as an aid to strategic thinking is widespread in modern marketing and strategic planning. Amongst the more commonly cited are the Boston Consulting Group’s (BCG) Boston Box and the Directional Policy Matrix (DPM). This paper considers a new matrix, developed from the DPM, which could help consumer and industrial planners make more effective decisions about which market segments to target. The Segment Evaluation Matrix (SEM) directly tackles the issues of segment attractiveness and operational issues associated with segmentation. The matrix is demonstrated using an example from the European construction and agricultural equipment market. The strategic implications of the analysis are also explained.",
keywords = "Implementation, Market segmentation, Portfolio management, Targeting",
author = "Sally Dibb",
year = "1995",
month = "1",
day = "1",
doi = "10.1080/09652549500000011",
language = "English",
volume = "3",
pages = "189--204",
journal = "Journal of Strategic Marketing",
issn = "0965-254X",
publisher = "Taylor & Francis",
number = "3",

}

TY - JOUR

T1 - Developing a decision tool for identifying operational and attractive segments

AU - Dibb, Sally

PY - 1995/1/1

Y1 - 1995/1/1

N2 - Although market segmentation is a well recognized and accepted aspect of marketing theory, problems for companies trying to implement the concept are not uncommon. In some companies poor understanding of basic segmentation principles is the cause. In others, industries have become geared to serving specific sectors and distribution is organized accordingly -any restructuring of the customer base would create considerable practical difficulties. Other companies complain of too few tools to help them make appropriate and effective targeting decisions. The use of boxes and matrices as an aid to strategic thinking is widespread in modern marketing and strategic planning. Amongst the more commonly cited are the Boston Consulting Group’s (BCG) Boston Box and the Directional Policy Matrix (DPM). This paper considers a new matrix, developed from the DPM, which could help consumer and industrial planners make more effective decisions about which market segments to target. The Segment Evaluation Matrix (SEM) directly tackles the issues of segment attractiveness and operational issues associated with segmentation. The matrix is demonstrated using an example from the European construction and agricultural equipment market. The strategic implications of the analysis are also explained.

AB - Although market segmentation is a well recognized and accepted aspect of marketing theory, problems for companies trying to implement the concept are not uncommon. In some companies poor understanding of basic segmentation principles is the cause. In others, industries have become geared to serving specific sectors and distribution is organized accordingly -any restructuring of the customer base would create considerable practical difficulties. Other companies complain of too few tools to help them make appropriate and effective targeting decisions. The use of boxes and matrices as an aid to strategic thinking is widespread in modern marketing and strategic planning. Amongst the more commonly cited are the Boston Consulting Group’s (BCG) Boston Box and the Directional Policy Matrix (DPM). This paper considers a new matrix, developed from the DPM, which could help consumer and industrial planners make more effective decisions about which market segments to target. The Segment Evaluation Matrix (SEM) directly tackles the issues of segment attractiveness and operational issues associated with segmentation. The matrix is demonstrated using an example from the European construction and agricultural equipment market. The strategic implications of the analysis are also explained.

KW - Implementation

KW - Market segmentation

KW - Portfolio management

KW - Targeting

UR - http://www.scopus.com/inward/record.url?scp=84917263392&partnerID=8YFLogxK

U2 - 10.1080/09652549500000011

DO - 10.1080/09652549500000011

M3 - Article

VL - 3

SP - 189

EP - 204

JO - Journal of Strategic Marketing

JF - Journal of Strategic Marketing

SN - 0965-254X

IS - 3

ER -