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How should Business markets be segmented?


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This presentation tells about how business markets should be segmented.
Based on Chapter 7 Kotler
Marketing Management : A South Asian Perspective 14th Edition (English) 14th Edition

Published in: Marketing
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How should Business markets be segmented?

  1. 1. Business Market segmentation By Sanchit Aggarwal Bits Pilani K.K Birla Goa Campus
  2. 2. Importance in B2B(business to business firms) • It is common for a B2B firm to have substantial investment costs and will often need to implement labour-intensive promotional strategies. • Example- Aluminium industry
  3. 3. • Personal selling is commonly used in business markets. • Some complex or expensive products may have a sales lead-time of several years, which means a team of sales people may easily invest 100s of hours in gaining a sale.
  4. 4. Business markets can be segmented on the basis of these five variables: Demographic Operating Purchasing Approaches Situational Factors Personal characteristics
  5. 5. Approach to business segmentation 1st Stage : Identify Macro segment 2nd Stage : Identify Micro segment
  6. 6. Example • The first variable considered is a business description, which broadly splits the potential market into food service, manufacturing, and supermarkets. food service was then further split by business description (restaurant/café or pizza outlet) and then by operating practice (whether or not they are a franchised operation). • Manufacturers are further defined by whether they use pizza sauce as a key ingredient (say for frozen pizza) or may use this style of sauce in other products (frozen or microwavable pasta for example). And finally supermarkets were further defined by whether or not they already sell a private label pizza sauce through their stores.
  7. 7. THANK YOU