Documente Academic
Documente Profesional
Documente Cultură
Industrial Markets
nested approach
managers can determine the best segmentation method
2
Business markets vs. consumer markets
6
Basics of DEMOGRAPHICS Segmentation
7
Parameters…
•Industry
•Company Size
•Customer Location
8
Eg.: Segmentation in various Industries for CAT
• Textile
• Oil & Gas
• Institutes
• Hotels and Resorts
• Shopping Malls
• Hospitals
• Automotives
• Beverages
9
Regional Market Share of CAT
Eg.: Geographical gensets
Segmentation
5% 1%
1%
Karachi
Faisalabad
29% Multan
Lahore
Muzafargarh
61% Islamabad
Kotri
2%
1%
Criteria 2: OPERATING VARIABLES
11
Parameters…
•Company Technology
•Customer Capabilities
12
Criteria 3: Purchasing Approach
13
•Purchasing Function Organization
• Power Structure
•Purchasing criteria
14
Examples of Purchasing Approaches:
Shell Pakistan was trying its best to tap KCA Deutag Pakistan, a
drilling company, however could not close the deal as all
decisions were made by their regional offices.
Examples of Purchasing Approaches:
Power Structure:
Uch Power needs 100,000 Litres of Turbine Oil for their newly
built plant. The power to decide would rest in a cross functional
decision making team, consisting of engineering as well as
finance dept.
Examples of Purchasing Approaches:
Out of the office relationships can also play a role if there are
no conflict of interests.
Purchase Criteria
A mix of all the criterias mentioned in the previous slides.
Criteria 4: SITUATIONAL FACTORS
One of the most important
segmentation criteria.
IoBM procures diesel fuels for their standby generators every month.
Chevron usually takes 3 working days to deliver the fuel to them. On the
convocation day – due to an unfortunate spillage in their storage area – all
the diesel became contaminated and could not be used. Mr. Talib Karim calls
Mr. Amir Khan and speaks about the problem. How, in your opinion, will the
sales person respond to the customer in this situation?
Most companies are willing to pay an extra charge to get the job done more
quickly.
Examples of Situational Factors:
Product Application
Size of Order
The most successful sellers are the ones who can find the most
similarities in their buyers.
Individual Behaviors
The bad news is that majority of the buyers are risk averse.
3.)Superficial Segmentation
4.) Obtuse, Convoluted and Outer nest data: Inner nest data:
disorganized segmentation
Highly Visible Less visible
• Marketer balance b/w “Easily acquired data from Outer nests” & “Detailed
analysis of Inner nests”
•“ Data Availability” and “Analysis of available data” are two separate approaches
•Any approach can not be neglected ONLY b/c the data is unavailable
• Cost = stay in outer nests, cost = gain useful data of inner nests
34