How Should Business marketed be Segmented?

Identifying Market Segment and Targets

5 ways of Segmentation

2.Operating Variables

1.Demographic

4.Situational Factors

3. Purchasing Approaches

5.Personal Characteristics

Demographic

Industry

Company

Location

Pay Attention to

Operating Variables

User/Nonuser Status

Customer capabilities

Technology

Purchasing Approaches

Purchasing Criteria

Purchasing Policies

Power structure

Situational factors

Urgency

Specific Application

Size or order

Personal characteristics

Buyer Seller Similarity: Companies whose people and values are similar to ours.

Loyalty: Companies showing high loyalty to their suppliers.

Attitude towards Risk: High risk taking or risk avoiding customers.