Identifying Market Segments and
Targets
How should business markets be segmented?
5 ways to segment business market
Demographic variables
Based on type of Industry, Company size and Location of
business
OPERATING VARIABLES
Based on TECHNOLOGY, CUSTOMER CAPABILITY and USER/NONUSER
STATUS
Purchasing approaches
Based on POWER STRUCTURE, PURCHASING CRITERIA, GENERAL
purchasing POLICIES, NATURE OF EXISTING Relationship
Situational factors
Based on URGENCY of service, SPECIFIC APPLICATION of product and
SIZE of ORder
PERSONAL CHARACTERISTICs
Based on BUYER SELLER SIMILARITY, LOYALTY and ATTITUDE TOWARDS
RISK
Disclaimer
Created by
Kartik Singla
Thapar University
during an internship by Prof. Sameer Mathur, IIM Lucknow. www.IIMInternship.com