ABSTRACT

The company can also consider strategy in terms of how it chooses to approach the market; that is, it can adopt a global approach or be more selective in the approach to the various segments. Thus, irrespective of product and product strategy, the implementation of that strategy might be enhanced where customer segmentation is recognized and practiced. Customer segments is better if they are independent of product strategy – that is, they should influence the way the company communicates with its customers with a view to ensuring that their communication is more effective than their competitors' communication. Customer segmentation is a tool which can be used to influence 'how' the strategy is implemented. A crude form of customer segmentation has always existed. For example, there has been a general belief that the type of information specialists need to receive will be different from that of general practitioners, who in turn differ in their information requirements from nurses.