There are 5 ways to segment business markets: 1) Demographic variables like industry type, company size, and location. 2) Operating variables such as technology, customer capabilities, and user/non-user status. 3) Purchasing approaches based on power structure, criteria, policies, and relationship nature. 4) Situational factors like urgency, specific application, and order size. 5) Personal characteristics including buyer-seller similarity, loyalty, and risk attitude.

1. Identifying Market
Segments and
Targets
How should business markets be
segmented?

2. 5 ways to
segment
business
market

3. Demographic variables
Based on type of Industry,
Company size and Location of
business

4. OPERATING VARIABLES
Based on TECHNOLOGY, CUSTOMER
CAPABILITY and USER/NONUSER
STATUS

5. Purchasing approaches
Based on POWER STRUCTURE,
PURCHASING CRITERIA, GENERAL
purchasing POLICIES, NATURE OF EXISTING
Relationship

6. Situational factors
Based on URGENCY of service,
SPECIFIC APPLICATION of product and
SIZE of ORder

7. PERSONAL
CHARACTERISTICs
Based on BUYER SELLER SIMILARITY,
LOYALTY and ATTITUDE TOWARDS
RISK

8. Disclaimer
Created by
Kartik Singla
Thapar University
during an internship by Prof. Sameer
Mathur, IIM Lucknow.
www.IIMInternship.com