Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc.

All rights reserved.

profitable developing. a division of Thomson Learning. All rights reserved. High-Growth Companies Succeed By • Selecting a • Focusing well-defined marketing group of resources on potentially acquiring. proposition. . • Developing a and retaining distinctive profitable value customers. Inc. Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western. customers.

Five Criteria for Evaluating Potential Market Segments 1. Substantiality 4. Inc. Accessibility 3. a division of Thomson Learning. Compatibility 5. All rights reserved. Measurability 2. . Responsiveness Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western.

All rights reserved. Process technology—the set of ideas or steps involved in the production of a product or service. Inc. 3. Technological Environment Assessment 1. a division of Thomson Learning. 2. Product technology—the set of ideas embodied in the product or service. . Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western. Management technology—the management procedures associated with selling the product.

select appropriate channels of distribution. the marketer to become more attuned to the unique needs of customer segments. develop profitable pricing strategies. Segmentation Benefits • First. Inc. a division of Thomson Learning. • Third. All rights reserved. focus product development efforts. Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western. provides guidelines that are of significant value in allocating marketing resources. • Second. .

Inc. All rights reserved. • Microsegmentation. . a division of Thomson Learning. Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western. Bases for Segmenting Business Markets • Macrosegmentation.

. Inc. the nature of the product application. Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western. and the characteristics of the buying situation. a division of Thomson Learning. All rights reserved. Selected Macrolevel Bases of Segmentation • Macrolevel bases of segmentation are concerned with general characteristics of the buying organization.

Selected Microlevel Bases of Segmentation The marketer often finds it useful to divide each macrosegment into smaller microsegments on the basis of the similarities and differences between decision-making units. All rights reserved. Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western. a division of Thomson Learning. . Inc.

familiar and unfamiliar. Satisficers approach a given purchasing requirement by contacting familiar suppliers and placing the order with the first supplier to satisfy product and delivery requirements. Optimizers consider numerous suppliers. Inc. Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western. a division of Thomson Learning. solicit bids. 2. Purchasing Strategies Classifications 1. All rights reserved. and examine all alternative proposals carefully before selecting a supplier. .

 Organizational Innovativeness – some organizations are more innovative and willing to purchase new industrial products than others. All rights reserved.  Attitudes toward Vendors – an analysis of how various clusters of buyers view alternative sources of supply often uncovers opportunities. a division of Thomson Learning.  Personal Characteristics – although some interesting studies have shown the viability of segmentation on the basis of individual characteristics. further research is needed to explore its potential as a firm base for microsegmentation. Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western.appropriate when the product is applied in various ways by various customers. Meaningful Microsegments  Importance of Purchase -. . Inc.

An Approach to Segmentation of Business Markets This figure combines these macrosegment bases and outlines and steps required for effective segmentation. Source: Adapted by permission of the publisher from Yoram Wind and Richard Cardozo. a division of Thomson Learning. Inc. All rights reserved.” Industrial Marketing Management 3 (March 1971): p. “Industrial Market Segmentation.. Inc. . Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western. 156. Copyright 1974 by Elsevier Science Publishing Co.