Benefit-feature segmentation: A tool for the design of a supply-chain strategy

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Abstract: Purpose ¿ This paper aims to assess the effectiveness of different segmentation schemes as the basis of marketing strategy, with particular respect to supply-chain decisions, and to propose a new procedure capable of combining benefits sought and features available. Design/methodology/approach ¿ In a study of buyers and consumers of beef in Brazil, segments based on three approaches were derived by hierarchical cluster analysis, fine-tuned by K-means cluster analysis. The outcome was evaluated for the viability and actionability of the preferred procedure, both objectively and through interviews with managers in the beef-supply business. Findings ¿ The results revealed that a segmentation scheme combining benefits sought and features available yields more homogeneous and actionable segments, and has real promise as an input to the formulation and implementation of supply-chain strategy. Research limitations/implications ¿ This promising innovation in market segmentation requires further study, and testing in the marketplace. Practical implications ¿ The proposed system is a usable aid to decision making. Originality/value ¿ The paper proposes an original approach to market segmentation. Keywords: Brazil, Market segmentation, Marketing planning, Marketing strategy, Supply chain management Article Type: Research paper
Original languageEnglish
Pages (from-to)511-533
JournalMarketing Intelligence and Planning
Issue number5
Publication statusPublished - 2007


  • Brazil
  • Market segmentation
  • Marketing planning
  • Marketing strategy
  • Supply chain management


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