Drivers of Export Segmentation Effectiveness and Their Impact on Export Performance

Abstract

In recent years, export segmentation effectiveness has attracted increasing attention in academic literature. The current study acknowledges this construct's ability to capture the proximal outcomes of export segmentation efforts and contributes to the literature by investigating its key drivers and link to export performance. The results identify export segmentation commitment, export segmentation strategy, and number of segmentation bases used as the key drivers of export segmentation effectiveness. A segments-within-countries strategy proves the most promising choice because it affects all export segmentation dimensions, which, with the exception of cost reduction, are significantly linked to customer satisfaction, strategic export performance, and, ultimately, financial export performance. The findings also provide support for the sequential segmentation AE targeting AE positioning process and highlight the importance of managerial commitment to export segmentation when facing heterogeneous markets.

The determinants of export performance: a review of the literature 2006-2014

“…Firms can achieve good performance in international markets as long as they implement exporting strategies consistent with their resources (Pla-Barber and Alegre, 2007). Export managers in small firms are recommended to concentrate on fewer markets to improve export performance (Brouthers et al, 2009), while those in large firms are encouraged to expand the number of different export markets in their portfolio (Diamantopoulos et al, 2014).…”

Sustainable Export Marketing Strategy Fit and Performance

“…Furthermore, in the exporting literature, the few studies that have captured targeting elements, such as market segmentation (Diamantopoulos et al 2014), usually reveal a positive relationship to performance (Leonidou, Katsikeas, and Samiee 2002). To our knowledge, international marketing strategy adaptation/standardization studies have not assessed market targeting as part of strategy.…”

The interplay between market intelligence activities and sales strategy as drivers of performance in foreign markets

“…decisions should precede all marketing-mix decisions (Diamantopoulos et al, 2014). Further research on export segmentation strategies, and particularly the simultaneous investigation of market segmentation/targeting and the development of marketing-mix strategies, can contribute towards filling this notable gap in the literature (Diamantopoulos et al, 2014).…”

“…The findings also indicate that exporting firms must actively engage in market intelligence activities to reinforce their strategic decision-making process.Originality/value -The study emphasizes the crucial importance of export sales strategy in achieving superior export performance. The study provides a theory-driven conceptualization and operationalization of export sales strategy and offers an empirical assessment of a comprehensive model that includes the key antecedents and performance outcomes of export sales strategy.decisions should precede all marketing-mix decisions (Diamantopoulos et al, 2014). Further research on export segmentation strategies, and particularly the simultaneous investigation of market segmentation/targeting and the development of marketing-mix strategies, can contribute towards filling this notable gap in the literature (Diamantopoulos et al, 2014).Export market segmentation should be viewed as a two-stage procedure 1 .…”

“…As part of the export marketing strategy, export market segmentation should initially focus on the identification of broader groups of counties that present attractive opportunities for the firm. Once a decision is made regarding the specific countries to target, the firm should apply a more fine-grained segmentation within each country, in order to identify specific groups of customers (or even individual customers) that should receive marketing effort (Cooper and Kleinschmidt, 1985).Empirical evidence indicates that this micro-level, within-countries, segmentation has the strongest impact on export performance (Diamantopoulos et al, 2014). Drawing a parallel with the (domestic) sales management literature (e.g., Panagopoulos and Avlonitis, 2010), micro-level segmentation should be part of a firm's export sales strategy, which must be consistent with but distinct from the firm's export marketing strategy.…”