group4 - bf2 - segementation market

7/29/2019 Group4 - BF2 - Segementation Market

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What is market segmentation ?

Market segmentation is a marketing

strategy that involves dividing a broad

target market into subsets of consumerswho have common needs and

applications for the relevant goods and

services.


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Potential benefits to:

The customers

The marketing mix The competition

What is market segmentation ?


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What does B2B mean?

Is short for business to business

B2B involves a company selling itsproducts and/or services to another

company

Criteria for segmenting B2B

market


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market

Identify subgroups within the whole

market that share common general

characteristics. These are called marcosegment.

Select target segments from within the

macro segments based on differences inspecific buying characteristic. These are

called micro segment.


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1. MACRO SEGMENTATION BASES:

Macro segment are based on the

characteristics of organizations and the

broader purchasing context within which theyoperate

A. ORGANISATIONAL

CHARACTERISTICS Size

Location

Usage rate


market


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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.


market


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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 aspossible


market


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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


market


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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.


market


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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?)


market


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Region

Political Climate

Currency

Payment Methods

Shipping & Receiving

Languages Spoken

Criteria for segmenting B2C

market

GEOGRAPHIC


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Age

Income

Marital status

Education

Gender

Family size

Social status

Occupation


market

DEMOGRAPHIC


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Brand Preferences

Relationship

Importance

Enviro-Friendly

Hobbies

Lifestyle

Service Preferences

Buy Based on

Trends

Relationship

Importance


market

PSYCHORAPHIC


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Purchase History

Where They Shop

Type of Store Preferences

Internet Usage


market

BEHAVIOR


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B2B B2C

WHO BUSINESSES INDIVIDUALS

NUMBER OFCUSTOMERS

SMALL LARGE

AMOUNT OF

INFLUENCE

LARGE SMALL

PURCHASING

PROCESSLONG SHORT

COST OF SALE HIGH LOW

B2B vs B2C


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group4 - bf2 - segementation market

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