Revisiting the strategic role of market segmentation: Five themes for future research

Abstract

Market segmentation goes beyond merely dividing a market into smaller groups of customers with similar needs that can be served with different offerings. Segmentation builds on and holds implications for marketing strategy, the differentiation of marketing activities, and the allocation of resources. Consequently, segmentation is essential for firms to enhance their competitive edge in navigating a more complex marketing landscape. This paper discusses five important areas where further research is needed to advance the understanding of segmentation: Segmentation as a theory, segmentation in practice, segmentation as a process, the impact of increased digitalization, and the challenge of multilayered markets.