The market segmentation workbook

Book Reviews Strategic marketing concerns the direction in which a business is heading, based upon substantial underlying trends. In a very real sense it refers to mapping out the future. The most that could be said of the lnternet is that it could in some cases contribute to the information necessary to do so. There is no doubt that the lnternet is a vast information source, and that a skilled operator will find access to almost limitless amounts of potentially useful material. This, however, does not add up to strategic marketing. The underlying message of this book is that over time more people will look in the lnternet for more things. This seems a likely enough prophecy, but it is hardly a revelation. Perhaps a strength of this text is that it provides the reader with some very interesting insights as to what information is to be found, and how it is that it might be used. There are a great many interesting web sites included in the book, and there is no doubt that the Internet is an amazing communication vehicle. Much of the content is concerned with the setting up of a web site. Although this is something that many a business might very sensibly wish to do, it is blown up out of all proportion in terms of where within a marketing programme such a vehicle would sit. We are given the impression that the Internet is so developed that it is, in itself, the answer to every marketing programme. It may at most be described as an emerging solution to some marketing problems. The marketing content is rather basic in concept, yet has been embellished with needlessly ornate language to give the impression of depth of thought. This, of course, could be said of many a text with marketing in the title, yet it seems an especially pertinent observation in this instance. It is not clever to make something seem more complicated than it is. We only have to think of instruction manuals for software to remind ourselves of this. Simple marketing theory has been applied to the setting up of a web site, which is of course a sensible activity, but again, this simple business has been cloaked in so much language that the reader is left with the impression that something terribly complicated is taking place. The advantages of the Internet with regard to international communication is clearly expressed, however. The already proven advantages of electronic data interchange are, however, underplayed in the text, which is a pity, as the

instancy of the Internet is surely its greatest strength. It has already become apparent in industry that too much information can be just as damaging to sound decisionmaking as too little, and that scores of e-mail messages every day actually waste more time than they save. Tom Vassos may be among the ranks of those who believe that maximum amounts of information are the answer to any problem, including writing a book, and seems blissfully unaware of the damaging effect of information overload upon the beleaguered practitioners of marketing in the real, as opposed to the virtual, world. Perhaps because of this, the book is unfocused, being too crammed with information, as opposed to insight. Had it been called 'How to Construct a Web Site' this review would have been kinder. As it is, it seems that the words 'strategic marketing' have been rather cleverly inserted in the title to enlarge the potential market for the book.

Christopher Preston Queen Margaret College Edinburgh The Market Segmentation Workbook Sally Dibb and Lyndon Simkin

Routledge London (1996) 219 pp 51 illustrations Appendix with 35 charts for completion Sally Dibb and Lyndon Simkin are lecturers in marketing and strategic management at the Warwick Business School. They have written a practical book which draws from their experience of consulting and executive teaching. The core of The Market Segmentation Workbook is market segmentation, especially issues concerning how segmentation analysis can be conducted so that a firm basis for strategic marketing programmes is established. The approach assumed by the authors is highly practical and very systematic. The book is logically structured into four sections. Before progressing to the first section the reader will encounter a flowchart which displays the key stages of the market segmentation process. The book follows the same logic, and thus the interrelation of the chapters becomes instantly apparent. The flowchart also serves as a "Checklist of progress" in the end of each chapter: the reader may thus see his or her progress throughout the book. The first section provides an overview

of how the book proceeds. It also reviews the academic foundations of segmentation model and segmentation principles. Clear guidelines and instructions are given for reading the book, or rather, for using the book. The authors maintain that "successful segmentation is possible by developing a series of easy to follow stages, which are accessible to marketing practitioners and which take realistic account of the existing practical constrains in the marketplace". The book uses the ASP segmentation approach which refers to Analysis, Strategy and Programmes for Implementation. Essentially, it focuses on the three major stages which are invaluable for a successful segmentation programme. Section 2 introduces the core marketing analyses which should be conducted so as to objectively and thoroughly re-evaluate the target markets of one's business. The analysis stage includes information collection from seven separate areas: existing customer base and business performance; market trends and the m a r k e t i n g environment; c o m p a n y strengths, weaknesses, opportunities and threats, i.e. SWOT analysis; customer needs, expectations and buying processes; competitive stance and strategies; basis for competing and brand positioning in the marketplace; the balance and strengths of the business's product portfolio. The intelligence obtained from the analyses form the basis for the subsequent steps: determining the customer segments, deciding which segments are chosen as target markets, and developing segmentation programmes. Section 2 consists of seven chapters corresponding to the seven analyses. In each chapter, an overview and instructions are given for conducting the analysis. In the end of each chapter there is a brief summary as well as a checklist to be completed by the reader. Thus the reader can check whether he or she has completed the analysis properly so that progress into next analysis is appropriate. While Section 2 directs the reader through a careful process of research and information gathering, Section 3 guides the reader in conducting a thorough consideration of all available information. The total output from the analyses serves as the basis of the strategic decision-making concerning target markets. Section 3 includes one chapter: Strategy recommendations. It focuses on carrying out segmentation, targeting and positioning. Clear step-by-step instructions are presented explaining how to use the 63

Book Reviews information from the analyses to evaluate current customer segment groupings, reexamine the list of priority target markets, and determine how the business's products are to be perceived and thus positioned in each target segment. The authors maintain the likelihood that the existing strategy is inappropriate and will need to be altered. Programmes for implementing revised strategies are addressed in Section 4 which consists of two chapters. First, the section leads in determining and controlling marketing programmes to implement the strategies. The reader is instructed in conducting modifications to the existing marketing programmes which should cover the five elements of the marketing mix, the '5 Ps': product, price, place, promotion and people or customer service. The second chapter of the final section concentrates on the control of the marketing programmes. The implementation of the marketing strategy should be directed by explicit guidelines, time-schedules, and budgets. In addition, the internal barriers to successful implementation should be taken into account. The reader is thus guided in reviewing the necessary resources, responsibilities and scheduling for implementation which would contribute to the success of the programme. The Market Segmentation Workbook is a clear guide with a how-to-do-things approach. The aims of the book are clearly stated in the beginning of the book. And they are also fulfilled. Also, the target segments of the book are explicitly defined. The book is clearly intended for marketing managers with practical business experience. The major target groups include "the busy marketing managers who require direct guidance, marketing managers willing to

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reexamine the marketplace of their business, and marketing managers who intend to establish customer programmes which enhance customer satisfaction". The target readers are provided with step-by-step guidance in developing realistic, objective segmentation and targeting programmes. There are charts which are intended for readers to fill in as they develop their own strategies for market segmentation. Each stage of the analysis, strategy and programming is analysed with the help of charts. Meanwhile, recommendations based on academically sound analysis are given. As indicated by its title, this book is not intended as a marketing management textbook but as a workbook. The reader of the book is in effect a user who will put the book to a good use in order to update his or her business's marketing intelligence and analysis. Thus, the aim is that he or she gains capability of accomplishing better formed marketing strategies. Those who look for insightful reading, new theories or novel ideas will not find this book relevant. Cases in the book are short, just to illustrate the steps of the segmentation process. No complete case analysis is provided. The reader is instead provided with charts to be completed with data from one's own business. The book will not be very useful for a reader either with scanty business experience or with little knowledge of the conceptual background of marketing strategies. Although explanations and definitions of incorporated theory and concept are given, the reader may be inclined to learn more about the theories. While references to the major marketing strategy textbooks are provided, some additional readings can indeed be recommended. Although the text is not very exacting, it

should be an advantage if the readers possess some prior knowledge. On the one hand one should be familiar with the basics of marketing strategy. On the other hand, the reader should benefit from practical experience in business. This book should be most useful for managers willing to revise and critically examine their current marketing situation and the effectiveness of their marketing programmes. Meanwhile the authors attempt to show that the results of the academic research can contribute to practical work of marketing managers. Managers are encouraged evaluating their current practices and in putting revised market segmentation strategy into practice. In The Market Segmentation Workbook the major marketing strategy concepts are gathered together. The user of the book is directed into a well-founded market segmentation programme. He or she is instructed how to work through the thorough multi-step analysis of the current markets of one's business. Conducting the analysis and completing the accompanying charts will help the manager determine his or her business's target market strategy. The strengths of the book lie in the careful consideration and exact directions for managerial action. This is a useful book written in a readable style. A collection of charts for completion is provided in the appendix of the book. The charts are even available in a disk format which allows printing the chart forms in A4 size. Thus, the charts may be used in a team situation by teachers and consultants.

Outi Uusitalo School of Business and Economics University of Jyviiskyii