Thursday, August 20, 2009

Business Market Segmentation

While many of the consumer market segmentation bases can be applied to businesses and organizations, the different nature of business markets often leads to segmentation on the following bases:

  • Geographic segmentation - based on regional variables such as customer concentration, regional industrial growth rate, and international macroeconomic factors.

  • Customer type - based on factors such as the size of the organization, its industry, position in the value chain, etc.

  • Buyer behavior - based on factors such as loyalty to suppliers, usage patterns, and order size.

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