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This chapter provides an overview of the marketing strategy development process in the commercialization of breakthrough technologies. Important concepts and elements that are considered critical when developing market applications are presented with emphasis on three key decisions: target market selection, segmentation, and positioning. These strategic decisions will guide the more tactical considerations relating to the specific elements, or marketing mix, of the product’s marketing strategy. Marketing strategy development is a dynamic process that is impacted by many factors. This chapter highlights the dynamic nature of this process as well as providing insight as to the fundamental considerations in strategy formulation.

Target marketing is a key decision area for all businesses. Market size, growth rates, competitive forces, customer fit and profitability are just a few of the criteria which can be used by businesses assessing the attractiveness of their target markets. Yet despite the wealth of variables available to managers and the development of a range of decision tools to help them, research indicates that many businesses continue to assess target markets on the basis of short‐term profitability measures. This paper examines the wide range of approaches which have been proposed in the literature for identifying market attractiveness and questions how these fit with managerial practice, utilising the findings from cases and two studies of The Times 1000 UK companies’ target market approaches. The studies’ findings indicate that the literature’s formal, multi‐criteria tools for assessing market attractiveness are not necessarily reflected in the simplistic view adopted by many marketing professionals and brand managers. The paper concludes by offering a research agenda to help define future work in this area.

The financial resources limitation, the difficult conditions for entry into the market and the lack of sufficient funds are the most important problems facing Iranian small and medium enterprises (SMEs). For these reasons, this paper aims to propose an appropriate methodology for formulating the most influential Iranian SMEs development strategies to make it possible to grow and make more income. Then, a framework is developed to precisely determine the target market for Iranian SMEs.

The paper uses strengths, weaknesses, opportunities and threats (SWOT) analysis; Pareto principle and analysis of the market conditions to propose the development strategies and uses a methodology based on multicriteria decision-making (MCDM) method to determine the target market.

According to the research results, it is necessary for the Iranian SMEs to follow the brand strengthening, product and market development, enhancing product quality and creating research and development units strategies focusing on the domestic market. The results obtained from the empirical study also indicated that the customer acquisition rate improved from 0.06 to 0.13 per month, and the company's income has a 64% growth in 2016 than the year 2015 through the selection of some public customers as the target market.

Very few studies have been done so far on the formulation methodology of a market entry strategy for SMEs. Studies by researchers imply that no studies have been conducted in Iran in this regard. International studies also mainly focus on the impact of some marketing activities.

The aim of the proposed classification approach of potential market alternatives (CAPMA) is to provide exporting countries with a framework for identifying potential market opportunities for their products or services.

In today's global market conditions, with competition increasing daily, companies, businesses and states must seek new markets at the national and international level. Target market selection is a strategic process that directly affects the success of an organization and can lead to important results in the short and long term. The process requires systematic research and digitization of data to analyse target markets.

The study tested the proposed approach by analysing Turkey's potential markets for hazelnut exports and identifying new target markets. A significant part of Turkey's hazelnut exporting is confined to the European geography of Turkey, the leading country in hazelnut production and export. Twenty potential markets were evaluated on the basis of 11 criteria, and feasible alternatives were categorized into four classes. The study revealed that the USA, India, the United Kingdom and Japan were in the category of markets with the greatest potential for increasing exports (Dimension 1).

This study has developed a novel approach that allows the comparison of the current market situation with potential market outcomes and creates an accurate classification of target markets.

This research probed the impact of an international versus domestic new product strategy on new product success. The study used 123 successes and 80 new product failures in 125 industrial firms in Canada. Two international dimensions were hypothesised to be related to new product performance: (1) the degree to which the product was developed for international versus domestic use; and (2) target market selection — domestic versus nearest neighbour versus world market. Successful products were found to be more international in terms of product design and marketing activities and products developed for international markets were more successful on a number of performance measures. Firms that elected an export strategy for their new products (in particular, a strategy aimed at world markets and not only at nearest neighbours) and developed products for international markets did better in foreign as well as domestic markets.

A survey of marketing executives within randomly selected, major firms in the Philippines investigates firms′ marketing actions in response to stagflation caused by the 1990 Persian Gulf crisis. A central premiss is that there will be differences in sensitivity to macroeconomic conditions between industry sectors. Results show that the manufacturing sector redirects pricing, product and research and development strategies more extensively than non‐manufacturers. These differences may be explained by the extent to which the industry sector is capital‐intensive in its formation and operation. Empirically demonstrates the effects of macroeconomic conditions on firms′ marketing practices and the relevance of the stagflation paradigm outside the United States.

This paper aims to establish how strategic target-market selection decisions are shaped, challenged and driven in response to the rapidly evolving technological landscape. The authors critically evaluate the implications of these changes for the role of marketers and the organizational function of marketing.

The research uses qualitative methods. Key-informant interviews are conducted among senior organizational practitioners within client-side organizations, digital agencies and strategic marketing consultancies, seeking to contrast their views.

The findings reveal an erosion of responsibility for the integrated strategic role of marketing decision-making. In particular, the authors reveal that the evolving digital landscape has precipitated a sense of crisis for marketers and the role of marketing within the firm. This extends beyond simply remedying a skills-gap and is triggering a transformation that has repercussions for the future of marketing and its practice, thus diminishing functional accountability.

The findings have long-term implications for marketing as a strategic organizational function of the firm and for marketing as a practice.

The study considers an increasingly digitalized marketplace and the associated impact of big data for the function of marketing. It reveals the changing scope of strategic marketing practice and functional accountability.

This paper aims to explore how segmentation is often undertaken in practice, highlighting problems commonly encountered. It is based on the deregulated and highly competitive UK market for energy, namely gas and electricity supply. The case is appropriate for modules in marketing strategy, target marketing and marketing management, at MBA, MSc or advanced UG levels.

The case highlights why this organisation opted for segmentation, how it conducted this project, and the problems faced. These insights are referenced with the segmentation literature.

With little product differentiation possible, gas and electricity tend to be price‐driven purchases, which increases the importance of effective segmentation and shrewd target segment selection. Both consumer and business segments are cited, but the case focuses more on the business‐to‐business outcomes. The approach adopted for selecting which segments to target is also featured. This case explores the use of market segmentation and the practical difficulties encountered. The solutions to these difficulties are highlighted.

The case could not disclose the company's identity, but provides an insightful explanation of how segmentation may be conducted and the problems encountered. There is bias towards business segments, rather than consumer ones.

Readers will be made aware of the impediments facing effective execution of market segmentation and be well prepared to spot such difficulties in any such projects that they might undertake.

Few cases explore the practical issues encountered during segmentation or the creation of a new target market strategy. These difficulties are addressable, but only if they are anticipated or identified expediently. This paper provides such warnings and guidance.

Organizations wishing to apply the principles of market segmentation often face problems putting the theory into practice. All too often the required background analysis is inadequate or poorly structured or the translation of segmentation strategy into marketing programs is impeded. To be successful, segmentation must lead an organization through a process which undertakes background analysis, determines strategy and develops marketing programs. However, there are a number of points at which the process can break down. Shows how the segmentation program described has tackled these difficulties, leading several management teams through the analysis, strategy and program elements of the market segmentation process. A range of benefits arise from the program. Primary benefits are that the process puts the customer first, maximizes resources and emphasizes strengths over competitors. Secondary benefits relate to the development of a more market‐focussed company culture and the building of inter‐ and intra‐organizational relationships.

Sound target marketing leads to winning business strategies. While market segmentation is an intriguing academic concept, most B2B practitioners struggle with the design and implementation of such initiatives. This paper aims to illustrate an effective strategic segmentation process in a high‐technology market context.

Bonoma and Shapiro's nested model – consisting of geodemographics, operating variables, purchasing approaches, situational factors and characteristics of the buyer – is used as a conceptual framework for market segmentation analysis. The model is applied to Citrix Systems as a way of finding new business opportunities in the desktop application streaming market.

In this study, 17 potential segmenting variables within the five major levels are examined with an initial emphasis on firmographics and technology. Census data identified market priorities based on establishment size, key sectors and geographic sales territories.

A four‐stage segmentation plan consisting of corporate commitment, research/refinement, implementation and evaluation/enhancement is proposed and discussed. Strategic planning lessons and research extensions are offered.

While the work on business segmentation has proliferated over the past 25 years, there has been a paucity of practical applications on how to conduct segmentation analysis successfully in technology markets. This paper provides an important roadmap for marketers to enhance segmentation initiatives via a comprehensive application and analysis of a leading global company.