Strategic marketing forecasting, market segment selection and firm performance

In this study the authors investigate several hypotheses relating strategic forecasting to market segment selection and firm performance. In the context of a strategic marketing simulation, subjects in 14 competitive industries made strategic forecasts for market segment size and benchmark prices. The present results show that firms differentially select those segments with attractive characteristics; that some strategic forecasts for these targeted segments are more accurate than for non-targeted segments; that strategic forecasts are more accurate the higher the level of competition; and that superior forecasting performance is positively associated with superior firm performance. Implications and limitations of the study are discussed.