Segmenting Business Markets

Consumer and business marketers utilize many of the similar variables to segment their markets. Business buyers may be segmented geographically or by user status, benefits sought usage rate, or loyalty status. Additional variables unique to this market would be business customer demo- graphics (company size, industry), purchasing approaches, situational factors, operating characteristics and personal characteristics. Going after segments rather of the entire market, companies have a much better opportunity to deliver value to consumers and to get maximum rewards for close notice to customer needs. Within a selected industry, a company may further segment by customer size or geographic location. Various marketers believe that buying behaviour and benefits provide the most excellent basis for segmenting business markets.

Segmenting International Markets Companies may segment international markets by using one or more of a combination of variables. The main factors that may be used are: Geographic location, Political and legal factors, Economic factors, Cultural factors. Various companies use scheme called intermarket segmentation.  In this scheme, companies form segments of consumers who have same needs and buying behaviour even though they are located in several countries. For instance, the world's teens have a lot in common.