Market Segmentation: How to Do It and How to Profit from It, Revised and updated 4th Edition

Chapter 14

Organizational issues in market segmentation

Summary

The structuring of markets into clearly defined segments is undoubtedly a key input into the company’s marketing plan. Segmentation not only identifies the customer groups your company should focus its resources into, but also, through the detailed analysis required in a professionally conducted segmentation process, identifies vitally important elements of a successful marketing strategy. Having an organization which is both supportive of the process and supportive of carrying through the findings into the marketplace is therefore crucial.

The purpose of this chapter is to raise and discuss the organizational issues associated with segmentation, many of which need to be addressed at the very early stages of a segmentation project.

This chapter is organized as follows:

• The vital role of the chief executive and top management
• How the need for formalized marketing procedures is related to company size and diversity of operations
• Issues to take into account when planning for the segmentation process
• A further look at the issues relating to line management and gaining their support
• The importance of integrating the segmentation process into a marketing planning system and, in turn, into a total corporate planning system
• Why an inclusive, cross-functional approach to segmentation produces the best results
• The importance of organizing the company’s activities around segments
• Further considerations with respect to integrating ...