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Segmenting Business Market

This document discusses market segmentation for businesses. It defines market segmentation as grouping customers with common characteristics relevant to marketing responses. It lists criteria for evaluating segmentation like measurability and benefits like tailored marketing. The document outlines bases for segmenting at the macro and micro levels, including organizational characteristics, purchasing behaviors, and decision-making structures. It provides examples of segmenting companies by these criteria and evaluating the costs and benefits of segmentation strategies.

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SaurabhChhabra
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62 views12 pages

Segmenting Business Market

This document discusses market segmentation for businesses. It defines market segmentation as grouping customers with common characteristics relevant to marketing responses. It lists criteria for evaluating segmentation like measurability and benefits like tailored marketing. The document outlines bases for segmenting at the macro and micro levels, including organizational characteristics, purchasing behaviors, and decision-making structures. It provides examples of segmenting companies by these criteria and evaluating the costs and benefits of segmentation strategies.

Uploaded by

SaurabhChhabra
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Segmenting the

Business Market
Chapter 5
High-Profit Companies
 What makes them successful?

 Three targets
Business Market Segmentation &
Benefits
 Market segmentation
• “A group of present or potential
customers with some common
characteristic which is relevant in
explaining (and predicting) their
response to a supplier’s marketing
stimuli.”
 Percentage breakdowns
Business Market Segmentation &
Benefits
 Five criteria for measuring
desirability
• Measurability
• Accessibility
• Substantiality
• Compatibility
• Responsiveness
Business Market Segmentation &
Benefits
 Competitive Environment
• Competitive analysis
• Core competencies
• New competition
 Technical Environment
• Three types of technology
 Product technology
 Process technology
 Management technology
 Benefits of Segmentation
Bases for Segmenting
 B2C Segmentation
 Macrosegmentation
• Organizational characteristics
 Examples:
 Dell

• Microsegmentation
 Characteristics of decision-making units
 Examples:
Macrolevel Bases
 Segmentation Methods
• Characteristics of Organization
 Size
 Geography
 Usage rate
 Structure of purchasing function
• Product Service Application
 NAICS
Macrolevel Bases
 Segmentation Methods (cont’d)
• Value in use
 Definition
• Purchasing situation
 Example
• First-time
• Novice
• Sophisticates
Microlevel Bases
 Segmentation Methods
• Key criteria
 What’s important to customer
 Example
• Programmed
• Relationship buyers
• Transaction buyers
• Bargain hunters
• Value-based strategies
 Innovation
 Customer in fast-growing markets
 Customer in highly-competitive markets
Microlevel Bases
 Segmentation Methods (cont’d)
• Purchasing strategies
 Satisficers
 Optimizers
• Structure of the decision-making unit
• Importance of purchase
• Attitudes toward vendors
• Organizational innovativeness
• Personal characteristics

 Microsegmentation Illustration
• Philips
Organizational Market
Segmentation Model
 Macrosegmentation

 Microsegmentation

 Check on costs and benefits


• UPS

 Implementation
• Questions to ask

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