INDUSTRIAL MARKET SEGMENTATION: AN OFTEN MISTAKEN APPROACH
The process of industrial market segmentation has been a source of frustration for many B2B companies. Among the causes for this frustration are the complexity of the downstream industrial chain, the often confusing concepts of "segment" and "application” for a given product already in use by the market, and the difficulty in finding the correct segmentation variable according to the context of the business.
At we have observed that a majority of industrial companies (B2B) have segmented their market for three reasons:
1. To have a "mental map" of the market.
2. To accommodate efficiently their own resources.
3. To segregate customers according to their "purchasing behaviour".
As a result, most of these firms have chosen to segment their markets demographically; for instance, by purchase volume or geographic location of customers.
This leads to wrong or superficial market segments. Furthermore, the implementation of such segmentation schemes will enter in crisis with the deeper offer that the customers need and with the positioning sought by you as a supplier.
The support that offers, include a complete training through segmentation best practices workshops for your company. We discuss your segmentation purpose, who and how to segment within the industrial chain, the role of the product in the segmentation process, how to detect practical segments and the organizational tasks to specialize the offer.