Industrial Marketing

Chapter 8 : Market Segmentation, Targeting and Positioning

+Segmenting Industrial Markets

+Criteria for Segmentation

+Bases for Industrial Market Segmentation

+Evaluating Market Segments

+Target Marketing Strategies

+Positioning

Chapter Summary

Industrial market segmentation is a complex procedure. The market segmentation provides benefits like determining market attractiveness and opportunities by analyzing the market. The segmentation should be based on important criteria like measurability, potential, compatibility, stability, and accessibility. Segmentation can be based on macro and micro variables.

The macro bases of segmentation are based on the industry and organizational characteristics. Organizational characteristics include demographics, end-use markets, and product applications. Micro bases for segmentation include purchasing situations, and customer-oriented variables such as customer experience, customer interaction needs, and customer benefits.

The nested approach divides the market on the basis of five basic criteria like demographics, operational variables, purchasing approaches, situational factors, and buyer’s personal characteristics. Segmentation is followed by targeting. Target markets are selected by evaluating the markets, by analyzing the profitability of the segments, and the capabilities of competitors.

Strategies like differentiated, undifferentiated, concentrated (target), and niche marketing strategies are adopted to target the markets. Targeting is followed by product positioning. Various approaches are followed for positioning the industrial products in the customers’ minds. They include positioning by technology, price, quality, image, distribution, and services.

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