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What is market segmentation ?

Market segmentation is a marketing strategy that involves dividing a broad target market into subsets of consumers who have common needs and applications for the relevant goods and services.

What is market segmentation ?


Potential benefits to: The customers The marketing mix The competition

Criteria for segmenting B2B market


What does B2B mean? Is short for business to business B2B involves a company selling its products and/or services to another company

Criteria for segmenting B2B market


Identify subgroups within the whole market that share common general characteristics. These are called marco segment. Select target segments from within the macro segments based on differences in specific buying characteristic. These are called micro segment.

Criteria for segmenting B2B market


1. MACRO SEGMENTATION BASES: Macro segment are based on the characteristics of organizations and the broader purchasing context within which they operate

A. ORGANISATIONAL CHARACTERISTICS Size Location Usage rate

Criteria for segmenting B2B market

SIZE: Large organization => many people involve in decision- making = > very complex and formalized decision making => require special treatment in terms of service or technical cooperation. Small organization => operate on a more centralized decision- making structure => involve 1 or 2 people and with simpler buying routines.

Criteria for segmenting B2B market

LOCATION:
almost

the companies concentrate on the place/ location during transport from their companies to another's. it is important to save cost, increase interest, decrease unfortunate and perhalf, can manufacture product as soon as possible

Criteria for segmenting B2B market

USAGE RATE:
The

quantity of product purchased maybe legitimate means of categorizing potential customers. A purchasing organization defined as a heavy user will have different needs from a light user. It is generally a better investment to make concessions in order to cultivate a relationship with a single heavy user than to try to attract a

Criteria for segmenting B2B market


B. PRODUCT OR SERVICE APPLICATION this second group of segmentation bases acknowledges that the same good can be used in many different ways. the SIC code may help to identify sectors with a greater propensity to use particular products for particular application.

Criteria for segmenting B2B market


2. MICRO SEGMENTATION BASES: What their particular need is, what benefit they are after and how you can communicate The purchase decision process Their purchasing strategy (do they stick to one supplier, or use a range of options?)

Criteria for segmenting B2C market


GEOGRAPHIC
Region Political Climate Currency Payment Methods Shipping & Receiving Languages Spoken

Criteria for segmenting B2C market


DEMOGRAPHIC
Age Income Marital status Education Gender

Family size Social status Occupation

Criteria for segmenting B2C market


PSYCHORAPHIC
Brand Preferences Relationship Importance Enviro-Friendly Hobbies Lifestyle

Service Preferences Buy Based on Trends Relationship Importance

Criteria for segmenting B2C market


BEHAVIOR
Purchase History Where They Shop Type of Store Preferences Internet Usage

B2B vs B2C
B2B
WHO NUMBER OF CUSTOMERS AMOUNT OF INFLUENCE

B2C

BUSINESSES INDIVIDUALS SMALL LARGE LONG HIGH LARGE SMALL SHORT LOW

PURCHASING PROCESS
COST OF SALE

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