Strategic marketing forecasting, market segment selection and firm performance

In this study we 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. Our 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.