Abstract
The issues to be addressed in Chapter 8 include:
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1
The differences between product differentiation and market segmentation as alternative competitive strategies.
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2
Possible bases for segmenting markets.
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3
Procedures and methods for segmenting markets.
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4
Deciding when to segment a market.
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Notes and References
Wendell Smith, ‘Product differentiation and market segmentation as alternative marketing strategies’, Journal of Marketing, 21 (July 1956) pp. 3–8.
B. M. Enis, Marketing Principles (Santa Monica, Calif.: Goodyear Publishing Co.,1977) 3rd edn.
Yoram Wind, ‘Issues and advances in segmentation research’, Journal of Marketing Research, vol 15 (August 1978) pp. 317–37.
Martin Bliss, ‘Market segmentation and environmental analysis’, unpublished M.Sc. thesis, University of Strathclyde (July 1980).
A. J. Resnik, P.B.B. Turney and J. B. Mason, ‘Marketers turn to counter segmentation’, Harvard Business Review (September-October 1979) pp. 100–6.
Wind, ‘Issues and Advances in Segmentation Research’, see n. 3 above.
Wind, ‘Issues and Advances in Segmentation Research’, see n. 3 above.
Wind, ‘Issues and Advances in Segmentation Research’, see n. 3 above.
Definitions of these segments are as follows:
Segment 1: The Buffs. Persons who are enthusiastic and very knowledgeable about the products. They are primarily concerned with quality and technical features.
Segment 2: The Singles. Persons who live alone. Although they are less technically competent than the Buffs, they demand good performance from a product they may use more than the average consumer.
Segment 3: The Professions. Persons who have a higher level of education and high incomes. They tend to be more independent of their occupation and to engage in many social activities. Their purchase of the product is partially motivated by social status needs.
Segment 4: The High Earners. Persons who have high incomes but do not possess the higher level of education or occupational independence of the individuals in Segment 3.
Segment 5: Others. Persons who do not belong to the above groups. This segment represents the largest proportion of the population.
Paul E. Green, J. Douglas Carroll and Frank J. Carmone, ‘Design Considerations in Attitude Measurement’, in Y. Wind and M. Greenberg (eds), Moving Ahead with Attitude Research (Chicago: American Management Association, 1977) pp. 9–18.
G.J. Hooley, ‘The Multivariate Jungle: The Academic’s Playground but the Manager’s Minefield’, European Journal of Marketing, 14(7) (1980) pp. 379–86.
The discussion in this section draws heavily on Brian Everitt’s book Cluster Analysis (London: Heinemann, 1974).
G.H. Ball, Classification Analysis (Stanford, Calif.: Stanford Research Institute, 1971)
Everitt, Cluster Analysis, see n. 12 above.
Everitt, Cluster Analysis, see n. 12 above.
Everitt, Cluster Analysis, see n. 12 above.
Everitt, Cluster Analysis, p. 97, see n. 12 above.
R. R. Frank, R. Massy and Y. Wind, Market Segmentation (Englewood Cliffs, N.J.: Prentice-Hall, 1972).
D.L. Louden and A. J. P. Bitta, Consumer Behaviour (New York: McGraw-Hill, 1979).
Philip Kotler, Marketing Management (Englewood Cliffs, N.J.: Prentice-Hall, 1980) 4th edn.
Michael Thomas, ‘Market Segmentation’, Quarterly Review of Marketing, 6(1) (Autumn 1980) pp. 25–8.
See ‘Acorn finds new friends’ by Eric Clark. Marketing (16 December 1982). This is an important source for many of the facts cited here.
Michael Rines, ‘How CLS Will Work’, Marketing (17 March 1983).
Francis Quinlan, ‘The Use of Social Grading in Marketing’, Quarterly Review of Marketing (Autumn 1981) pp. 16–29.
D. Riesman, N. Glazer and R. Dinny, The Lonely Crowd (New Haven, Conn.: Yale University Press, 1950).
K. F. McCrohan, ‘An Application of the Social Character Construct in Market Segmentation’, Journal of the Market Research Society, 22 (4) (October 1980) pp. 263–7.
‘Psychographics: a critical review’, Journal of Marketing Research, 12 (1975).
‘How Important to Marketing Strategy is the “Heavy User?” ’, Journal of Marketing (January 1964).
Journal of Marketing, 32 (July 1968) pp. 30–5.
J. Choffray and G. L. Lilien, ‘A New Approach to Industrial Market Segmentation’, Sloan Management Review 19(3) (Spring 1978) pp. 17–29.
R. N. Cardozo, ‘Situational Segmentation of Industrial Markets’, European Journal of Marketing, 14(5/6) pp. 264–76.
P. Robinson, C. Paris and Y. Wind, Industrial Buying and Creative Marketing (Boston: Allyn & Bacon, 1967).
H. G. Johnson and A. Flodhammer, ‘Industrial Customer Segmentation’, Industrial Marketing Management (July 1980) pp. 201–5.
Frank, Massy and Wind, Market Segmentation, see n. 18 above.
R.M. Worcester and J. Downham (eds), Consumer Market Research Handbook (New York: Reinhold, 1978) 2nd edn.
Shirley Young, Leland Ott and Barbara Feigin, ‘Some Practical Considerations in Market Segmentation’, Journal of Marketing Research, 15 (August 1978) pp. 405–12.
Wind, ‘Issues and Advances in Segmentation Research’, see n. 3 above.
Wind, ‘Issues and Advances in Segmentation Research’, see n. 3 above.
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© 1992 Michael J. Baker
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Baker, M.J. (1992). Market Segmentation. In: Marketing Strategy and Management. Palgrave, London. https://doi.org/10.1007/978-1-349-22167-7_8
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