Problem Segmentation

Market segmentation is a firmly established marketing concept and an important resource allocation tool. In consumer markets, benefit segmentation has become one of the most widely used bases. Buyer problems could be a useful basis for market segmentation in certain situations. The emphasis is placed on the application of problem analysis to issues of building perceived and actual quality and competitive advantages. The “problem analysis” approach is described and literature‐based support presented for adding problems to the list of segmentation bases. An example of problem analysis and its application to segmentation is provided. Problem segmentation is a response to the recognition in marketing literature that the consumer is basically a problem solver. A problem perspective provides a direct contribution to current managerial strategy needs concerned with product/service quality and the development of substantive competitive positions. It may often identify issues of greater relevance to consumer decision making than those provided by a benefit assessment.