{"id":1085,"date":"2022-04-10T20:23:00","date_gmt":"2022-04-10T18:23:00","guid":{"rendered":"https:\/\/support.centreforelites.com\/segmenting-industrial-markets\/"},"modified":"2024-03-14T16:12:06","modified_gmt":"2024-03-14T14:12:06","slug":"segmenting-industrial-markets","status":"publish","type":"post","link":"https:\/\/support.centreforelites.com\/en\/segmenting-industrial-markets\/","title":{"rendered":"SEGMENTING INDUSTRIAL MARKETS"},"content":{"rendered":"

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Industrial markets can be segmented into some variables employed in consumer market <\/span>segmentation. <\/span>Such variables include geographic, benefits sought, and usage rate. Apart from these, several other variables can also be employed. For instance, Bonoma and Shapiro (1983) have suggested segmenting the business market<\/a> with the variables<\/span>.<\/span><\/p>\n

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\"SEGMENTING<\/a><\/div>\n


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The demographic variables among others, are the most important, filled by the operating variables, then, down to the personal characteristics of the buyer. <\/span>You will <\/b>observe that the table lists major questions that business marketers <\/span>should ask in determining which segments and customers to serve. For instance, a tyre manufacturing company should first decode which industries it wants to serve.<\/span><\/p>\n<\/div>\n

The company can sell tyres to manufacturers of automobiles, trucks, farm tractors, forklift trucks, or aircraft. From a chosen target industry, it can<\/o:p><\/span><\/p>\n

Demographic<\/span><\/b><\/o:p><\/span><\/p>\n

1. Industry: which industries should we serve?<\/o:p><\/span><\/p>\n

<\/a>2.      <\/span><\/span><\/span>Company size: What size companies should we serve?<\/o:p><\/span><\/p>\n

<\/a>3.       <\/span><\/span><\/span>Location: What geographical areas should we serve? Operating Variables<\/b><\/o:p><\/span><\/p>\n

<\/a>4.       <\/span><\/span><\/span>Technology: What customer technologies should we focus on?<\/o:p><\/span><\/p>\n

<\/a>5.      <\/span><\/span><\/span>User or nonuser status: Should we serve heavy users, medium users, light users, or <\/span>nonusers?<\/o:p><\/span><\/p>\n

<\/a>6.      <\/span><\/span><\/span>Customer capabilities: Should we serve <\/span>customers needing many or few services?<\/span><\/p>\n

Purchasing Approaches<\/span><\/b><\/o:p><\/span><\/p>\n

<\/a>4.      <\/span><\/span><\/span>Purchasing-function organization: Should we serve companies with highly centralized or decentralized purchasing organizations?<\/o:p><\/span><\/p>\n

<\/a>5.      <\/span><\/span><\/span>Power structure: Should we serve companies that are engineering dominated, financial y dominated, and so on?<\/o:p><\/span><\/p>\n

<\/a>6.      <\/span><\/span><\/span>Nature of existing relationships: Should we serve companies with which we have strong relationships or simply go after the most Desirable companies?<\/o:p><\/span><\/p>\n

<\/a>7.      <\/span><\/span><\/span>General purchase policies: should we serve-companies that prefer leasing? Service contracts? System purchases? Sealed bidding?<\/o:p><\/span><\/p>\n

<\/a>8.      <\/span><\/span><\/span>Purchasing criteria: Should we serve companies that are seeking quality? Service? Price?<\/o:p><\/span><\/p>\n

Situational Factors<\/span><\/b><\/o:p><\/span><\/p>\n

<\/a>6.      <\/span><\/span><\/span>Urgency: should we serve companies that<\/o:p><\/span><\/p>\n

need quick and sudden delivery or service?<\/o:p><\/span><\/p>\n

<\/a>7.      <\/span><\/span><\/span>Specific application: should we focus on certain applications or our product rather than al <\/span>applications?<\/o:p><\/span><\/p>\n

8.Size of order: Should we focus or smal orders?<\/o:p><\/span><\/p>\n

9<\/span><\/a>.<\/o:p><\/span><\/p>\n

Personal Characteristics<\/span><\/b><\/o:p><\/span><\/p>\n

<\/a>9.     <\/span><\/span><\/span>Buyer-seller similarity: Should we serve companies whose people and values are similar to <\/span>ours?<\/o:p><\/span><\/p>\n

<\/a>10.    <\/span><\/span><\/span>Attitude toward risk: Should we serve risk-taking or risk-avoiding customers?<\/o:p><\/span><\/p>\n

<\/a>11.    <\/span><\/span><\/span>Loyalty: Should we serve companies that show <\/span>high loyalty to their supplier?<\/span><\/p>\n


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Major Segmentation variables for Business markets <\/span>further segment by customer size. For example the company might set up separate operations to sell to both large and small <\/span>customers.<\/o:p><\/span><\/p>\n

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Table of Contents<\/p>\n