3. One set of industrial descriptor segmentation variables is shown in Table 5.1
Market Segmentation Variables for Business Markets Page 130. These
·Demographic variables: Company size, industry type, geographic
location, and number of employees.
·Operating variables: Dimensions of the customer’s operations such
as technologies they use, how many of services or products they
·Purchasing approach variables: Customers who use a bidding
process, centralized/decentralized purchasing, etc.
·Situational factors: These include the customer’s delivery speed
needs, order size, and particular uses of the product.
·Personal characteristics: Organization’s attitudes toward risk, etc.
4. Segmentation scheme (Tables 5.2 and 5.3 Pages 130 -131)
·Segmenting by market type:
·Vertical marketing: Marketing to specific industries with
products or services tailored to those industries.
·Horizontal marketing: Marketing to different industries with the
same product or service.
·Segmenting by buy classes (Set of descriptor variables used in
industrial marketing segmentation that is based on the newness of
the purchasing situation:
·Straight rebuy: Routine purchases made by an organization from
the same supplier used in the past.
·Modified rebuy: Purchasing situation in which something has
changed since last purchase.
·New-task purchase: Purchasing situation that is unusual or
occurs infrequently in a given organization.
·Illustration: Panasonic (www.panasonic.com) Page 132
·Illustration: HSBC (www.hsbc.com) Page 132
·Segmenting in technology companies,
·Chasm Model Figure 5.1 Page 134
·Illustration: Baan Co. (www.infor.com) Page 136
·Illustration: PayPal (www.paypal.com) Pages 136-137
5. Marketing research implications: Data collection
·Use various types of data collection methods including syndicated or
proprietary research, government research, specialized consulting
·Illustration: Cardboard Boxes and Containers, Page 137 and
Table 5.6 Page 138
6. Marketing research implications: Developing target markets
·Criteria used to determine whether a particular segmentation scheme
is useful are: