infonet-economy

Issues of segmentation and positioning have always been at the heart of marketing management. In recent years, much methodological progress has been made in order to carry out these two tasks simultaneously, that is, to combine certain types of clustering algorithms with appropriate multidimensional scaling or unfolding procedures. When trying to provide managers with a tool to support marketing decision-making in segmentation and positioning, the ease of use and the visual quality of results must be emphasized. This paper provides a state-of-the-art review of alternative graphical formats designed to assist strategic management. It focuses on three aspects, namely, (I) representing competitive market structures, (II) illustrating preferences for product attributes, and (III) describing customer heterogeneity at the individual as well as segment-specific levels; this paper also explores the interrelations among these aspects. The benefits and limitations of different approaches are discussed, and graphical examples are provided. Advances in academic research are contrasted with the information requirements of marketing managers. Finally, recommendations on the applicability of these alternatives for practical use are offered, and issues for further research are specified.