Bases for Segmenting B2B Markets

Demographic

Operating Variables

Purchasing Approach

Situational Factors

Personal Characteristics

Industry, company size, location

Technology, user status, customer capabilities

Power structure, nature of existing relationship

Urgency, specific application, size of order

Buyer-seller similarity, loyalty, risk attitude

INDUSTRY

COMPANY SIZE

LOCATION

Which Type Of

To Be Served

WHICH TYPE OF BUSINESSES TO ASSIST?

Location Of Industries to Be Served

Operating Variables

TechnologyCustomer CapabilitiesUser Or Non User Status

Purchasing-function organization : Highly centralized or decentralized purchasing organization?

Power structure: Engineering dominated, financially dominated companies ?

General purchasing policies : Companies that prefer leasing? Service contract? Systems purchases? Sealed bidding?

Purchasing criteria : Companies that are seeking quality? Service? Price?

URGENCY

Focus On Large Or Small Orders

Personal CharactersLOYALITY

ATTITUDE TOWARDS RISK

BUYER-SELLER SIMILARITY

Serving With High Loyalty To Sellers

Should Company Serve Loyal Sellers Or Those Which Fetch Large Sums?

Serving Risk Taker or Risk Avoid Businesses