In this foundational piece, Professor Malcolm McDonald explores one of the most critical — yet often misunderstood — pillars of marketing strategy: market segmentation.
Drawing on over 30 years of practical experience and scholarly research, the article explains how segmentation and mapping enable businesses to focus resources, understand real customer behaviour, and ultimately improve performance.
Why This Matters
- Most businesses still rely on outdated or irrelevant segmentation models
- Research shows poor segmentation is a major reason for product failure
- Market maps help answer the core question: “Who is the real customer?”
Key Themes Covered
- Why demographics alone aren’t enough
- The link between needs-based segmentation and shareholder value
- How to build a real-world market map
- The process of identifying micro-segments
- Case studies from pharmaceuticals and agriculture (ICI Fertiliser)
“Trying to implement CRM without segmentation is like trying to build a house without engineering measures or an architectural plan.” — Rigby (2002), quoted by Malcolm McDonald
Download the Full Academic Chapter
This summary offers key insights, but the full work is rich with data, case history, and process visuals.