The use of market segmentation theory in practice: business-to-business marketing practitioners' perspectives

Abstract

The reality of a so-called theory/practice divide between what the academic world research and teach and how it is applied by practitioners has existed for decades. Academics commented about the practical applicability of theories concerning business management applications. This research attempts to understand a concept from a practitioners’ viewpoint. The focus of the research was on marketing and management practitioners’ application of market segmentation principles in their businesses. The study was qualitative in nature. Discussion guidelines were used in in-depth interviews from purposefully selected case study organisations. The analysis indicated that practitioners readily apply the economic principle of market segmentation. That is to divide the broad market into parts (segments) and then focus their attention on selected segments. The analysis also indicated that practitioners deviate from the current marketing theory on market segmentation. It was further found that management practitioners could benefit from applying some of the principles taught in market segmentation theory. The implications from the findings are twofold. The first is that an alternative theory regarding market segmentation emerged from management practitioners’ perspectives. The second is that it is possible to integrate aspects of other market segmentation schemes with the alternative theory to ensure a market segmentation approach that confirms management intuition as well as existing market segmentation theory. Merging these approaches creates a possible improvement in the practical application of current market segmentation theory.