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

1. Business Market segmentation
By
Sanchit Aggarwal
Bits Pilani K.K Birla Goa Campus

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. • 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. Business markets can be segmented
on the basis of these five variables:
Demographic Operating
Purchasing
Approaches
Situational
Factors
Personal
characteristics

6. Approach to business segmentation
1st Stage : Identify Macro segment
2nd Stage : Identify Micro segment

7. 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.

8. THANK YOU