industrial market segmentation

Views:
 
Category: Education
     
 

Presentation Description

No description available.

Comments

Presentation Transcript

Industrial Market Segmentation : 

Industrial Market Segmentation 80/20 rule Segmentation is for Providing distinct & unique value proposition(allocate its resources more efficiently) Servicing, nurturing, developing as profitable customers(increase the returns)

Differences to understand ..... : 

Differences to understand ..... Needs attitude towards purchase decision making process Users & uses vary(eg: steel –shining,strength) Purchase process(people)

Factors considered for segmentation : 

Factors considered for segmentation Measurability- buyer characteristics, buyers Substantial – big enough to be worth investing resources into Compatibility: business strengths should match the competitive & technological state of the market Accessible: able to focus its effort on the chosen market

Two major categories for segmenting industrial markets : 

Two major categories for segmenting industrial markets Macro segmentation Micro segmentation

Macro segmentation : 

Macro segmentation Consists of identifying macro variables & centers on organizational & industry characteristics These data can be obtained from secondary sources & marketers Information system

Micro segmentation : 

Micro segmentation Requires greater focus, better understanding of the markets, market knowledge, decision making units & their criteria. This requires the primary data, which can be collected thru’ the sales force or by an agency research.

Bonoma & Shapiro’s Nested Approach to Segmentation : 

Bonoma & Shapiro’s Nested Approach to Segmentation There is a hierarchial structure, & the segmentation bases moves from the macro to the micro level variables.

Five variables in the nested approach : 

Five variables in the nested approach Organizational demographics consisting of the industry, company size & location. Operating variables consisting of technology, user, non –user status, & customer capabilities Purchasing approaches comprise buying centers structure, purchasing policies & purchasing criteria. Situational factors consisting urgency, application & size of order Personal factors consisting of motivation, buyer seller dyad, & risk perceptions.

Evaluating the segments : 

Evaluating the segments Once segmented, we need to quantify the segments. The marketer must know the profitability & the level of competition in such segments. We would also like to know the growth potential of each segment. To do this the marketer uses certain forecasting methods

Reasons for Forecasting : 

Reasons for Forecasting Understanding the profitability from the segments chosen Level of competition in those segments

Methods of Forecasting : 

Methods of Forecasting Qualitative methods: Executive opinion, Delphi method, sales force composite, test marketing Quantitative methods: Moving averages, regression & correlation analysis, Econometric models etc.

TARGET MARKETING : 

TARGET MARKETING The marketers decide which segment they would like to serve These segments are the targeted market

Strategies for target marketing : 

Strategies for target marketing Concentrated Marketing Differentiated Marketing Undifferentiated Marketing Niche Marketing

Positioning : 

Positioning Once the target markets have been selected, the marketer should try & create positioning strategy for each target market Positioning is a distinct place a product occupies in the mind of the target customers vis a vis your competitor products.

Developing a positioning strategy : 

Developing a positioning strategy Identify the unique attribute to differentiate & then Communicate the positioning to the target market

Factors used for differentiation : 

Factors used for differentiation Product Variable Service Variable Personnel Variable Image Variable Once the differentiating factor has been identified, it is communicated to the target segment it is done through personal selling, advertising & trade shows.