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A resource-advantage theory typology of strategic segmentation

A resource-advantage theory typology of strategic segmentation PurposeThe purpose of this paper is to define a typology of strategic segmentation accounting for antecedents (potentially conscious or subconscious) that influence marketing managers’ practice of strategic segmentation, thereby formulating a new theoretical basis to bridge the current theory–practice literature gap in strategic segmentation.Design/methodology/approachBased on the resource-advantage theory, this paper defines a typology of strategic segmentation that depicts how a firm’s access to imperfectly mobile resources relates to the marketing manager’s assumed heterogeneity of the market and to the manager’s approach to the market.FindingsThe authors postulate a typology of firms’ strategic segmentation and approach to the market that is heavily influenced, and potentially limited, by the firm’s available resources to effectively segment and address the market.Research limitations/implicationsThe typology suggests that resource availability affects a manager’s view and approach to the market. Therefore, testing of this typology should be performed to provide an empirical basis for a taxonomical foundation of strategic segmentation. Empirical testing should examine whether: resource availability is directly related to managers’ views of market heterogeneity, resources are negatively correlated with market approach, market-based intelligence (customer needs) are linked to the market approach, and there is relationship between a firm’s position within the typology and its long-term performance.Practical implicationsThis paper provides an understanding that a manager’s knowledge of resource availability may be strategically counter-productive when creating a strategic segmentation. This limitation may lead to short-run choices for segmentation and market approach. Managers should, therefore, consider their strategic goals both with and without limiting their view based on current resources.Originality/valueThis paper provides the first typology of strategic segmentation by considering theoretical foundations of business that could bridge the often-noted theory–practice gap of segmentation. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png European Journal of Marketing Emerald Publishing

A resource-advantage theory typology of strategic segmentation

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References (54)

Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
0309-0566
DOI
10.1108/EJM-08-2015-0585
Publisher site
See Article on Publisher Site

Abstract

PurposeThe purpose of this paper is to define a typology of strategic segmentation accounting for antecedents (potentially conscious or subconscious) that influence marketing managers’ practice of strategic segmentation, thereby formulating a new theoretical basis to bridge the current theory–practice literature gap in strategic segmentation.Design/methodology/approachBased on the resource-advantage theory, this paper defines a typology of strategic segmentation that depicts how a firm’s access to imperfectly mobile resources relates to the marketing manager’s assumed heterogeneity of the market and to the manager’s approach to the market.FindingsThe authors postulate a typology of firms’ strategic segmentation and approach to the market that is heavily influenced, and potentially limited, by the firm’s available resources to effectively segment and address the market.Research limitations/implicationsThe typology suggests that resource availability affects a manager’s view and approach to the market. Therefore, testing of this typology should be performed to provide an empirical basis for a taxonomical foundation of strategic segmentation. Empirical testing should examine whether: resource availability is directly related to managers’ views of market heterogeneity, resources are negatively correlated with market approach, market-based intelligence (customer needs) are linked to the market approach, and there is relationship between a firm’s position within the typology and its long-term performance.Practical implicationsThis paper provides an understanding that a manager’s knowledge of resource availability may be strategically counter-productive when creating a strategic segmentation. This limitation may lead to short-run choices for segmentation and market approach. Managers should, therefore, consider their strategic goals both with and without limiting their view based on current resources.Originality/valueThis paper provides the first typology of strategic segmentation by considering theoretical foundations of business that could bridge the often-noted theory–practice gap of segmentation.

Journal

European Journal of MarketingEmerald Publishing

Published: Nov 14, 2016

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