B2B Segmentation Macro variables

Type of industry Mining, chemical, textile, automobile,

processed food etc End-use application:

Steel: construction(bars), automobiles (plates), tubes, special alloys, cast components (cast iron) etc

Company size: Large, medium or small Geographic location

B2B Segmentation: Evaluation

Sales and growth Profitability analysis Competitive analysis Company objectives and resources

B2B Segmentation Micro variables

Standard Customised

Small quantity Large quantity

Nature of credit facility Purchasing policy

Tender, rate-contract, negotiated

Purchasing criteria: price, quality, service etc Personal relations and motives

Financial & Market Attractiveness Test

15%5%25%Market growth

40%44%60%Contribution %

HighLowMediumMarket attractiveness

LowMediumHighBusiness strength

505317Total segment sales

10%30%60%Market share

276Contribution margin

394Variable cost

51610Sales

S3S2S1Description

Rs crores Segment

Target Market Strategies Concentrated Marketing

Single or chosen few clearly defined segments

Narrow range of products Differentiated Marketing

Serves a wide range of market segments

Wide range of products

Target Market Strategies Niche or Specialized Marketing

Geographic specialization End-user specialization Customer size specialization Product-line specialization Customer specialization

Positioning Strategies Attributes for differentiation:

Product and technology Service variables Personnel variables Brand image

Select attributes to distinguish amongst competitors

Communicate