Organizational Market Segmentation

Posted By on September 15, 2014


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Different criteria for segmenting Consumer Market
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Organizational Market Segmentation

Organizational markets can be segmented according to the characteristics of the organization; this is sometimes referred to as the macro level. Factors that would be analysed at this level would be:

  • Industry sector Standard industry classification codes (SIC codes) will identify an organization’s primary business activity. Different industry sectors may have unique needs from a product or service. In the computer hardware and software market the needs of retailers, financial services companies and local government will be different.
  • Size of the organization This can be judged using several variables such as the number of employees, volume of shipments, market share. This method of segmentation has to be used with caution, just because an organization is large does not mean that it will be a large purchaser of your product. However, larger organizations will differ from smaller companies by having more formalized buying systems and increased specialization of functions.
  • Geographic location Traditional industries can tend to cluster geographically, an example being the car industry in Detroit, USA. However, even emerging technologies show the tendency to locate in the same geographical area. The UK computer industry has clusters in central Scotland (Silicon Glen) and along the M4 motorway in southern England. Internationally there may well be different regional variations in purchasing behaviour, for example between Western and Eastern Europe.
  • End-use application The way in which a product or service is used by a company has an important effect on the way the…
Different criteria for segmenting Consumer Market
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Posted by Akash Kurup

Founder and C.E.O, World4Engineers Educationist and Entrepreneur by passion. Orator and blogger by hobby

Website: http://world4engineers.com