Abstract: This study extends research on the relationship
between marketing strategy and market segmentation by
investigating on market segments in the cement industry.
Competitive strength and rivals distance from the factory were used
as business environment. A three segment (positive, neutral or
indifferent and zero zones) were identified as strategic segments. For
each segment a marketing strategy (aggressive, defensive and
decline) were developed. This study employed data from cement
industry to fulfill two objectives, the first is to give a framework to
the segmentation of cement industry and the second is developing
marketing strategy with varying competitive strength. Fifty six
questionnaires containing close-and open-ended questions were
collected and analyzed. Results supported the theory that segments
tend to be more aggressive than defensive when competitive strength
increases. It is concluded that high strength segments follow total
market coverage, concentric diversification and frontal attack to their
competitors. With decreased competitive strength, Business tends to
follow multi-market strategy, product modification/improvement and
flank attack to direct competitors for this kind of segments. Segments
with weak competitive strength followed focus strategy and decline
strategy.