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Segmenting the Business Market

Segmenting the Business Market. Chapter 5. High-Profit Companies. What makes them successful? Three targets. Business Market Segmentation & Benefits. Market segmentation

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Segmenting the Business Market

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  1. Segmenting the Business Market Chapter 5

  2. High-Profit Companies • What makes them successful? • Three targets

  3. Business Market Segmentation & Benefits • Market segmentation • “A group of present or potential customers with some common characteristic which is relevant in explaining (and predicting) their response to a supplier’s marketing stimuli.” • Percentage breakdowns

  4. Business Market Segmentation & Benefits • Five criteria for measuring desirability • Measurability • Accessibility • Substantiality • Compatibility • Responsiveness

  5. Business Market Segmentation & Benefits • Competitive Environment • Competitive analysis • Core competencies • New competition • Technical Environment • Three types of technology • Product technology • Process technology • Management technology • Benefits of Segmentation

  6. Bases for Segmenting • B2C Segmentation • Macrosegmentation • Organizational characteristics • Examples: • Dell • Microsegmentation • Characteristics of decision-making units • Examples:

  7. Macrolevel Bases • Segmentation Methods • Characteristics of Organization • Size • Geography • Usage rate • Structure of purchasing function • Product Service Application • NAICS

  8. Macrolevel Bases • Segmentation Methods (cont’d) • Value in use • Definition • Purchasing situation • Example • First-time • Novice • Sophisticates

  9. Microlevel Bases • Segmentation Methods • Key criteria • What’s important to customer • Example • Programmed • Relationship buyers • Transaction buyers • Bargain hunters • Value-based strategies • Innovation • Customer in fast-growing markets • Customer in highly-competitive markets

  10. Microlevel Bases • Segmentation Methods (cont’d) • Purchasing strategies • Satisficers • Optimizers • Structure of the decision-making unit • Importance of purchase • Attitudes toward vendors • Organizational innovativeness • Personal characteristics • Microsegmentation Illustration • Philips

  11. Organizational Market Segmentation Model • Macrosegmentation • Microsegmentation • Check on costs and benefits • UPS • Implementation • Questions to ask

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