Unique Aspects of Industrial Market Segmentation

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  • Topic: Marketing, Markets, Horizontal market
  • Pages : 4 (961 words )
  • Download(s) : 110
  • Published : May 29, 2011
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What are the Unique Aspects of Business Market Segmentation?

A business firm must define the market in which it wishes to operate.

In defining the market, business market managers choose descriptors (bases) that characterize and delimit a market, with the intent pinpointing groups of firms that are of greater interest to the supplier firm.

What are the Models of Business Market Segmentation?

Wind and Cardozo Model
Bonoma-Shapiro Model

Wind-Cardozo Model Of Business Market Segmentation

According to appropriateness dimension, the DMU characteristics is the most appropriate followed by organizational characteristics and product characteristics perceived as the least appropriate. On the other hand organizational characteristics are the easiest to identify though not the most appropriate.

Wind-Cardozo Model of Business Market Segmentation
Based on empirical evidence, Wind and Cardozo argue that marketers often use inexpensive and acceptable means of segmentation, which they consider much less appropriate than what they would like to use. For examples, DMU characteristics are seen as very appropriate, yet are not currently used as bases of segmentation. Organizational characteristics appear to be used more widely now than may be appropriate.

Bonoma And Shapiro Model Of Business Market Segmentation

A marketer can begin at the outside nest and work inward because data are more available and definitions clearer in outer nests. On the other hand, situational and personal variables of the inner nests are often the most useful.

Bonoma And Shapiro Model Of Business Market Segmentation

The outer-nest criteria are generally inadequate when used by themselves in all but simple or homogeneous markets because they ignore buying differences among customers. Over emphasis on the inner-nest factors, however, can be too expensive and time-consuming for small markets. A balance is to be achieved between the two nests.

What is the...
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