Market Segmentation Implementation Barriers and How to Overcome Them

Abstract

Market segmentation's role in marketing and strategic planning is well established. Yet businesses using segmentation in practice frequently encounter barriers that impede their success. This paper explores the diagnosis and treatment of such barriers. Case examples are used to illustrate and explain two categories of barriers: harder issues relating to data, financial and personnel resources and softer issues encompassing corporate culture, inter-functional co-ordination and issues of leadership style. While many of the harder issues respond to early treatment, the softer issues are more difficult to handle in this way. The paper concludes by presenting a checklist of early treatment actions for businesses engaged in a market segmentation programme.