ABSTRACT
This introduction presents an overview of the key concepts discussed in the subsequent chapters of this book. The book explains the importance of segmentation and the strategies and practical activities for deploying it, and it describes how to implement segmentation best practices into the organization so that a segmentation strategy realizes greater profitability. Linda Trevenen suggests that grouping customers based on what they value enables a firm to provide distinct offerings and prices to each of these customer groups. The contribution of the book is thus a sketch of required pricing capabilities and processes in highly dynamic environments, which are markedly different from capabilities and processes described by extant research in static environments. The book illustrates the difference between lowest initial purchase price, lowest Total Cost of Ownership (TCO) and an expanded view of TCO that includes the sum of all customer-specific value created. It highlights the importance of communicating the price and value premium in industrial markets.
