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This chapter examines market segmentation, one the basic ideas on which much of modern marketing is built. For most organizations, market segmentation is a primary way to search for and exploit market opportunities. Part A of this chapter describes three broad types of segmentation — corporate, product-market, and tactical. Part B examines product-market segmentation and strategic market selection. One of the key issues here is the issue of how many segments should organizations compete in. Part C examines tactical segmentation and targeting. The emphasis is to ‘get close to customers’ by developing an understanding of their needs, wants, and how they go about buying products and services.

Although there is now a general recognition that capital market liberalization failed to help developing countries achieve economic growth and stability, there are still a number of unresolved controversies, including the fundamental issue of what types of capital market interventions governments should undertake, and more centrally, whether there exist any interventions for which the benefits exceed the costs. Given the importance that capital account interventions can play in macroeconomic policy-making, this chapter analyzes alternative modes of regulations, including case studies of Chile, Colombia, and Malaysia. Though economists have a strong proclivity for price-based interventions (taxes and subsidies) over quantity-based interventions (administrative restrictions and controls), theoretical work in economics has shown that sometimes quantity-based restrictions can reduce risk more effectively than price interventions. In addition to direct forms of interventions, such as taxes and restrictions on inflows and outflows, interventions in capital markets can also take on a variety of indirect forms such as limiting banks’ short-term foreign borrowing or applying adverse tax or bankruptcy treatment to foreign-denominated borrowing. Though the regulations vary in their methods, they generally serve to segment (or separate) the domestic and foreign exchange markets. The chapter concludes with a number of arguments for and against the various modes of capital market intervention.

For growth-seeking companies with sound technologies and executives who aim to create new streams of revenue within two or three years, strategy need not be so complicated. Market segmentation is the first step in new market applications development. The best way to understand market segmentation is, like most things, to understand its fundamental principles and observe those principles at work in different examples. The examples offered in this chapter run the gamut from physical assembled products, to software and systems, to biotechnology, and to services. Marketing specialists correctly suggest that the differences between segments must be measurable and meaningful. That means that you must have concrete data for the different regions on your grid. These data might include: current sales by segment, annual growth rates, market share, competitors and their market shares. Putting all these together on a single page provides a rich picture of the market and the competitive landscape.

This chapter characterizes the contemporary heroin market in terms of its major producers, traffickers, and consumers. It presents an overview of the contemporary world opiate market and supply-control programs and provides both a static portrait of the market and insight into its dynamics. Despite the apparent asymmetry of supply and demand there is little evidence of market control or power except possibly in the past actions of the Taliban and, to a much lesser extent, among some present-day traffickers. The evidence is more supportive of market segmentation, which has important implications for market adjustments and outcomes.

This chapter examines the immobility and segmentation in the Chinese labour market. It argues that the hampering of market-equilibrating wage movements has delayed the progress towards a fully functioning labour market. When there is excess labour supply, undercutting of wages does not occur and enterprises support their long-standing employees. When there is excess demand, there is too little voluntary mobility of labour for employees to use wage policy as a recruitment device.

This chapter introduces key financial tools necessary for understanding Fusion for Profit. This chapter shows how different ownership structures (i.e., whether the firm is publicly or privately held) affect the firm's tradeoff between risk and return. It also distinguishes the cases where the firm sells multiple products or has multiple divisions; in particular, it shows how privately and publicly held firms should coordinate their marketing and financial decisions under uncertainty.

The type of the competitive market in which firms operate will depend on the implicit rules that govern the behaviour of the companies. When there are long‐term relational contracts, there is the opportunity for prices to reflect the value of products to the customers as well as the cost of the product. Accordingly, the less stable the competitive environment, the greater the degree to which prices will be determined by cost rather than value.

This chapter explores the dynamics of the heroin market, as evident in its response to the Taliban opium cutback. It discusses the observed changes in the price and purity of opiates throughout the market as outcomes of interactions between supply and demand. It analyses the issues of market power and segmentation, specifically in relation to the apparent effect of the Taliban ban. It provides evidence for short-run supply rigidity and consequent price increases, the potential for expansion in other regions and the cushioning effects of inventory.

This chapter shows how the multiproduct/multiagent firm should design compensation plans for its sales force. It distinguishes between the differential effects of experience (productivity), heterogeneous risk attitudes among salespersons, and the firm's market segmentation policies. In addition, it shows how marketing-finance fusion allows multiproduct and multiagent firms to measure changes in sales force productivity using an objective metric (not sales revenue).

This chapter demonstrates that the extent to which labor market segmentation leads to economic, social and political insider-outsider divides depends on the institutional context. Based on survey and income data, it shows that both the composition, as well as the economic and social situation of insiders and outsiders varies across countries and welfare regimes. The share of outsiders is highest in liberal and continental countries, followed by the Nordic and Southern European countries. In a comparative perspective, insider-outsider divides appear to be strongest in continental Europe, with regard to all three dimensions examined: labor market inequalities, welfare inequalities and political integration. The upshot of the chapter is that policies matter: they can compensate, reproduce or even deepen insider-outsider divides.

People occupy different segments of the labor market. Those on the inside often have permanent contracts with training and personal development opportunities with their employers, while those in the periphery often have temporary or unstable contracts and less opportunity for advancement. These peripheral workers are often excluded from social arrangements taken for granted by other employees and are not only marginalized within the labor market, but in other areas as well. This paper analyses longitudinal individual data from Great Britain (the British Household Panel Survey) and Germany (The Socio-Economic Panel) from 1999 to 2005 and explores the relationship between segmentation in the labor market and its longer term implications for recurrent poverty experience. Statistical modelling is employed to show how being an outsider in the job market affects poverty in future years and how the effects differ between Germany and Great Britain.

This chapter discusses market opportunities, outlining how to identify market opportunities and to create new products and services to respond to customer needs. Part A reviews the main factor that triggers this search, namely, the need to grow. It explores various possibilities for growth. Two key growth-related issues bedevil marketing managers. One is that growth often leads to a blurring of focus. The second issue is the organization's capability to create new products or services. Part B discusses new product development (NPD), a proven way to drive markets and respond to the increasing expectations of customers. Part C provides a brief review of how consumers adopt new products and services. This discussion provides the first detailed look at one of the foundation concepts of marketing — market segmentation.

Despite aggregate-level increases in social welfare spending over the three decades following democratization, Southern European countries still do not provide universal coverage for citizens. Southern European welfare regimes remain fragmented, corporatist, and familistic, excluding from coverage of those who cannot secure permanent employment in the formal sector of the economy, especially women and young people who are hired under short-term contracts. The absence of universalistic “social citizenship” is a product of corporatist authoritarianism and repression of workers' demands under the previous political regimes, labor-market rigidities, clientelism, and the protection of the privileged status of long-term workers by trade unions. In response to this fragmented and incomplete welfare system, informal, family-based strategies of welfare provision have developed and become widespread in all four countries, with unpaid work in family businesses and an extraordinarily late average age for leaving the parents' home as distinguishing characteristics.

This chapter compares informal and formal finance in terms of the costliness of obtaining and keeping loans, finding that formal finance should be preferred by firms that are better credit risks. Informal, or non-bank, finance, is used frequently by most small- and medium-sized enterprises (SMEs). This is not necessarily because it is better than formal, or bank, finance, but often because it is the only means of financing available, since the formal sector remains plagued by lending constraints. The chapter compares informal and formal finance in terms of transaction, financial, and physical costs, based upon a study performed in the cities of Shanghai and Nanjing. It is found that informal finance is not necessarily faster, cheaper, and better than formal finance. In fact, for firms that are good credit risks, it is less attractive than formal finance due to its higher interest rates.

Market segmentation in the 1980s was assisted by the advent of cable television. One of the earliest and most successful of all the early cable channels was Music Television (MTV), a cable television station that plays videos of popular songs. This chapter explores the rise of market segmentation and the use of music to target specific groups of consumers. It focuses on the rise of MTV and its influence on advertising in the early 1980s.

The key concepts, proceeding top-down, for market analysis for the hospitality industry are market segmentation, demand, and supply. Location or trade area comes into the analysis as an umbrella over these three concepts. Market niche and segmentation, demand, and supply are primary determinants to establishing the criteria for locating hospitality facilities. Whenever there have been sufficient numbers of travelers in search of food and shelter, some form of hostelry industry has arisen.1 The Code of Hammurabi (1800 B.C.E) referred to innkeeping (Winfree 1996). In the western countries, as the Romans established an extensive roadway system, taverns and inns followed at strategically spaced locations. The Roman roads were used for military travel, trade and commerce, and pilgrimage and tourism. These are the primary reasons we use roads today. The early inns were largely run by religious orders. However, in Europe, as commerce grew in the fifteenth century, lodging as a commercial activity began to replace innkeeping as a charitable activity. In the American colonial period during the seventeenth and eighteenth centuries, inns and taverns were an important part of commerce and cultural exchange. These facilities were designed after the inns and taverns of England, which were closely integrated into their communities. Inns and taverns did not intrude or disrupt the neighborhood; instead, they were thought of as being an integral part of the culture and activities of the neighborhood. Architecturally, early inns and taverns conformed to the look and feel of the surrounding neighborhood environment. Survivors of these early inns are the contemporary bed-and-breakfasts (B&Bs). The term hotel arose early in the nineteenth century and was used to distinguish a greater level of commercial activity than an inn. Hotels offered food, drink, retail shopping, and lodging. Hotels were also more intrusive in their neighborhoods. Instead of less than 10 rooms that typified many inns of the era, early hotels contained as many as 200 rooms, and rose to 6 floors in height. Many nineteenth-century hotels were the tallest buildings in town. Thus, the hospitality industry began its first cautious attempts at market segmentation and diversification. Inns remained, but hotels offered an alternative experience via amenity differentiation.

This chapter focuses on the birth of commercial agriculture in South Texas during the 1910s and 1920s as improved transportation and irrigation facilities combined with the massive numbers of migrants leaving the violence and disorder of revolutionary Mexico to create an agricultural boom in the previously desolate ranching region. It also examines the massive growth of the interstate migrant stream that began and ended each year in South Texas, sending thousands of workers across the nation by the 1920s.

Chapter 13 first looks at how changes at one level in the food supply chain may affect prices and quantities at another level via profit maximization. The chapter then considers firms that are closer to the consumer (e.g., restaurants) who will often be able to set their own prices and consider the analytics of profit maximization under this scenario. Utilizing this framework, the chapter considers the question: Are healthier foods more or less profitable than unhealthy foods? This leads naturally to a discussion of market segmentation, the limit of the market, and the distribution of healthy and unhealthy foods in the food system. As there are many calls for food firms to be more socially responsible and offer healthier foods, the chapter utilizes the framework to explore the implications of corporate social responsibility and how compatible that idea is with profit maximization.

This chapter revisits the system of flexible exchange rates that emerged following Bretton Woods. The very success of floating rates in promoting real and financial integration is now spurring efforts to reintroduce elements of market segmentation. Flexible exchange rates does not fully insulate domestic financial sectors from the global financial cycle and policy spillovers. In this context, capital controls can be considered a second-best option; macroprudential policies would be preferable but it is unclear whether they can be deployed effectively.