BALANCING THEORY AND PRACTICE - A REAPPRAISAL OF BUSINESS-TO-BUSINESSSEGMENTATION

The article reviews some current guidance on when and how to segment b usiness-to-business markets. If evaluates traditional segmentation pro cesses and the variables usually recommended. Several important issues are highlighted including: the limitations of current definitions; ri te continuing tension between theoretically meaningful and manageriall y possible segmentation methods, and the difficulties in rising produc t benefits as opposed to customer needs as a basis for segmentation. T he paper proposes a new comprehensive definition of segmentation and a more balanced marketing-orientated approach to the process. We conclu de that the appropriate approach to segmentation in business-ro-busine ss markets is governed by the objectives of the organizations involved and by prevailing investment priorities and competitive tensions, rat her than by the idealistic recommendations of marketing theory always to focus exclusively on customer needs, The implications for managers and for future research are discussed. (C) 1998 Elsevier Science Inc.