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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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Criteria for segmenting B2B
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
Criteria for segmenting B2B
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.
Criteria for segmenting B2B
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
Criteria for segmenting B2B
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
Criteria for segmenting B2B
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.
Criteria for segmenting B2B
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?)
Criteria for segmenting B2B
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
Criteria for segmenting B2C
market
DEMOGRAPHIC
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Brand Preferences
Relationship
Importance
Enviro-Friendly
Hobbies
Lifestyle
Service Preferences
Buy Based on
Trends
Relationship
Importance
Criteria for segmenting B2C
market
PSYCHORAPHIC
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Purchase History
Where They Shop
Type of Store Preferences
Internet Usage
Criteria for segmenting B2C
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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