Selection Factors of Market Segments and Porter’s Generic Marketing Strategies: Evidence from an Emerging GCC Market

Abstract

The current study aims at both identifying the detailed variables behind selecting the appropriate market segment(s) and the selection of the three generic marketing strategies i.e. differentiation, focus and cost leadership. The experiences of 177 Bahraini executives working for domestic and multi-national corporations (MNCs) were utilized to achieve these objectives. Via SPSS version 21 and throughout multivariate analytical technique (e.g. multiple regression), factor analysis, and descriptive analysis the current study’s three objectives and four hypotheses were tested. Based on factor analysis, the target market selection variables are loaded on four factors as proposed by Hooley and Saunders (1993). However, the title of the fourth variable becomes “regulatory, political, and environmental” instead of only “environmental factor” as in Hooley and Saunders (1993) did name in their own study. Based on Multiple Regression (MR) results, there is no significant causality relationship between demographics (i.e. type of business, ownership, experience, and size) and market factor. Meanwhile, significant causality relationships were existed between; demographics and “economic and technological factor”; demographics and “competitive factor”; and between demographics and “regulatory, political, and environmental factor”. Finally, the variables for selecting each generic strategy have been determined.