Market Segmentation: How to Do It and How to Profit from It

Nothing in business works unless markets are correctly defined, mapped, quantified and segmented. Why else have hundreds of billions of dollars been wasted on excellent initiatives such as TQM, BPR, Balanced Scorecards, Six Sigma, Knolwedge Management, Innovation, Relationship Marketing and, latterly, CRM? The answer, of course, is because of a structured approach to market segmentation.

Foreword vii

Preface and acknowledgements ix

An important note to the reader from the authors xi

List of figures xv

List of tables xix

1 Market segmentation – the bedrock of successful marketing 1

2 Preparing for segmentation – additional guidelines for success 21

3 Fast tracking through the segmentation process 47

4 Determining the scope of a segmentation project 71

5 Portraying how a market works and identifying decision-makers 105

6 Developing a representative sample of different decision-makers 143

7 Accounting for the behaviour of decision-makers 213

8 Forming market segments out of like-minded decision-makers 255

9 Determining the attractiveness of market segments 303

10 Assessing company competitiveness and the portfolio matrix 329

11 Realizing the full potential of market mapping 349

12 Predicting channel transformation 369

13 Setting marketing objectives and strategies for identified segments 407

14 Organizational issues in market segmentation 449

15 Using segmentation to improve performance – a case study 469

Index 481