Document Type: Original Article

Authors

Department of Business Management, Central Tehran Branch, Islamic Azad University, Tehran, Iran

Abstract

One of the major industries to meet the expansion goals in human, social, and economic aspects is herbal medicine. Marketing department, producers, and entrepreneurs play an important role in applying potentials in this industry, but, as herbal medicine scholars argue, herbal medicine market share in Iran is less than 4 percent. This might be due to neglecting executive targeted marketing. The participants of the study included all people going to pharmacies to purchase herbal medicines. Purposeful and classified sampling methods were used in qualitative and quantitative sections, respectively. As to the qualitative phase, grounded theory method was applied, while k-means approach was used for quantitative data analysis. Qualitative findings resulted in the extraction of eight essential categories. Moreover, the results of K- mean algorithm suggested that the best mode is segmenting this market (i.e., herbal medicine) into four segments. The segments differ from each other in terms of the selected categories. Results contribute to presenting an appropriate strategy for each segment in order to simultaneously create value for both customers and market in particular and create facilities for expansion and growth of herbal medicine industry in general.

Graphical Abstract

Highlights

  • Changes in psychological dimension such as lifestyle and concern about healt towards attention to the issue of security and self-sufficiency is necessity.
  • Changes in behavioral dimension such as habits of consumption, attitude and Motivation with the emphasis on the absence of side effects and nutritionally beneficial for health is necessity.
  •  Creating and developing herbal medicine market, secondary, and supplementary market are important.

Keywords

Main Subjects

Ahmadi, P., Azar, A., & Samsami, F. (2010). Market segmentation drug neural network approach. Journal of Business Management, 2(6), 1-20.

Ayazi, S.M.H. (2017). The Ministry of Health supports the manufacturers of herbal medicines and herbal medicines. http://tasnim.ai/1658994/ 19/2/2017.

Braund, K., & Kumar. C. (2003). Marketing Management. Sage publication INC, 2nd Edition.

Chen, J., & Burgers, W. P. (2017). Winning the China vitamin war by building a strong brand. International Journal of Pharmaceutical and Healthcare Marketing, 1(1), 79-95.

Diaz, N., & Hoefkens, C. (2009). Needs based segmentation: principles and practice, International Journal of Market Research, 44 (12), 405-422.

Gheybi, F. (2018). The economic value of herbal plant in Iran. Retrieved from  http://TasnimNews.com/Fa/News/ 10/6/2018

Hajimirrahimi, S.D. (2017). The effect of educational, expansions and research factors on the development of medicinal plants in Markazi Province of Iran. International Journal of Agricultural Management and Development, 7 (2), 223-236.

Hosseini, S.Y., & ZiaeeBideh, A.R. (2013). Segmentation and profiles of green using self-organizing maps ten. Management Research in Iran, 2, (17), 39-26.

Iran Ministry of Health and Medical Education Support from the manufacturers of medicinal plants and Herbal medicians. (2018). Retrieved from http:// snn.ir002ng7,667623./ 

Jamshidi, A.H. (2016). Revwe the amount of herbal medicinal produced in Iran. Record in Third National Exhibition of Herbal Medicine and traditional Medicine in Iran, Technical and Knowledge Based Publication, Tehran.

Jasemi, M., Moradnezhad, H., & Salavarz, M. (2016). Entrepreneurial strategies of enhancing competitive advantage of medicinal herbs in Ilam Province, Iran. International Journal of Agricultural Management and Development, 6 (4), 459-466.

Kheyri, H. (2018). Drug capita in Iran is more than Global Standard. Retrieved from http://Irna.ir/Fa/ News/ 83032795/13/9/2018.

Kotler, Ph., & Armstrong, G. (2013). Principles of Marketing. Translated by Mohammad Reza Saleh Ardestani and Abbas Sadi,Tehran, Ilar.

Marangoz, M., & Paksoy, M. (2014). Modeling Attitude towards organic foods: A research on adolescents. Business Management Dynamics, 3(7), 40-49.

Momeni, M. (2011). Data Clustering. Tehran, Moalef Publication, Iran.

Roediger, M, Ulrich, H. (2015). How are organic food prices affecting consumer behavior? Food Quality and Preference Journal, 43(6), 10-20.  

Secaran, O. (2011). Research methodology in management. Translated by Mahmood Shirazi & Mohamad Saeb, 9th Edition, Tehran, Roshd Publication.

Sevil, Z. (2016). A theoretical approach to concept of green marketing. Interdisciplinary Journal of Contemporary Research in Business, 3(2), 96-105

Stremersch, S. (2008). Health and marketing: The emergence of a new field of research. International Journal of Research in Marketing, 25(4), 229-233.

Williams, S. S., & Heller, A. (2007). Patient activation among Medicare beneficiaries: Segmentation to promote informed health care decision making. International Journal of Pharmaceutical and Healthcare Marketing, 1(3), 199-213.

World Health Organization. (2018). infrastructure and guidelines on producing herbal medicines.available at: http:// apps,who.int/medicinedocs/document ts/s 1996 en/s 21032 en.pdf

Yavari, A. (2018). Iran the golden gardens of medicinal plants and the share of Iran from global trade to zero. Retrieved from http:// tasnim news.com/11/6/2018. 

Yosini, D. (2012). Market segmentation for organic products in Bandung Waste Java Indonesia. Research Journal of Resent Sciences, 1(3), 48-56.