B2B Market Segmentation. Market segmentation is probably the most integral part of any marketing program.
In many ways, market segmentation is marketing in that it allows the marketer to align a product more directly with the needs of a specific subgroup ultimately growing sales. By dividing a market into subgroups of similar traits, marketing initiatives that include advertising, packaging, market positioning and product design are more in tune with the various needs of the customer. This allows the marketer to know their customer’s more specific needs and match them with those of the companies’ needs and abilities. The Complexity of B2B Segmentation Segmenting B2B markets is a more complex process than consumer markets; depending on who you ask.
Market segmentation. Criteria for segmenting[edit] An ideal market segment meets all of the following criteria: It is possible to measure.It must be large enough to earn profit.It must be stable enough that it does not vanish after some time.It is possible to reach potential customers via the organization's promotion and distribution channel.It is internally homogeneous (potential customers in the same segment prefer the same product qualities).It is externally heterogeneous,( potential customers from different segments have different quality preferences).It responds consistently to a given market stimulus.It can be reached by market intervention in a cost-effective manner.It is useful in deciding on the marketing mix.It identifies the target customer(s) (surrogate(s))It provides supporting data for a market positioning or sales approach.
Methods for segmenting consumer markets[edit] Geographic Segmentation[edit] Demographic Segmentation[edit] Market Segmentation: Summary and Forum. Market Segmentation - Marketing Skills Training from MindTools. Understanding Different Customer Needs © iStockphoto Imagine you're flicking through a glossy women's fashion magazine.
