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Maximizing Business Success Through Market Segmentation Strategies

Explore the key factors that drive high-profit companies' success through effective business market segmentation. Understand the benefits, criteria, and types of segmentation bases to capitalize on competitive and technical environments. Learn how to implement macro and micro segmentation methods to target diverse customer groups efficiently.

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Maximizing Business Success Through Market Segmentation Strategies

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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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