Abstract
Faced with an increasingly difficult operating environment, pharmaceutical companies are seeking ways to establish close and sustainable relationships with customers. Market segmentation is the tool of choice for identifying and influencing target groups and this paper explores the implications of the Internet for segmentation. This paper highlights the benefits of small group or micro-segmentation as an approach to individualised marketing and examine its application in developing deeper customer understanding. The lessons to be learnt from the Internet in terms of fine-grained segmentation, personalisation, knowledge sharing and experimentation can be applied in 7‘conventional’ pharmaceutical marketing today.

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