Methodological and Strategy Development Implications of Decision Segmentation

Thomas J. Reynolds

The goal of customer segmentation, the cornerstone of strategy development, is to identify homogeneous groups of customers that will respond in a consistent way to changes in the marketing mix.

Methodological and Strategy Development Implications of Decision Segmentation

Thomas J. ReynoldsUniversity of Texas System

INTRODUCTION

The strategic planning process involves determining the best course of action to achieve the strongest and most sustainable position in the marketplace. Three interrelated subprocesses provide the foundation for this effort: market segmentation, product/service positioning, and product innovation (identifying new opportunities).

At the cornerstone of strategy development is market segmentation. The basic objective of this function is to identify homogeneous groups or customer segments in the marketplace that will respond in a consistent, predictable way to variations...

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