Unique Aspects of Industrial Market Segmentation

946 WordsMay 14, 20114 Pages
What are the Unique Aspects of Business Market Segmentation? A business firm must define the market in which it wishes to operate. In defining the market, business market managers choose descriptors (bases) that characterize and delimit a market, with the intent pinpointing groups of firms that are of greater interest to the supplier firm. What are the Models of Business Market Segmentation? Wind and Cardozo Model Bonoma-Shapiro Model Wind-Cardozo Model Of Business Market Segmentation According to appropriateness dimension, the DMU characteristics is the most appropriate followed by organizational characteristics and product characteristics perceived as the least appropriate. On the other hand organizational…show more content…
But in business markets, because intermediate transactions are involved, a firm must first choose the stage in the value-adding chain before selecting the horizontal market segments. Consider the value-adding chain schematically shown in the previous diagram. An organization would have to decide whether to sell propylene, isopropanol, isopropyl acetate (chemical intermediates), and/or plastics. The stage in the value-adding chain where it decides to sell its output represents its choice of output markets. Suppose the organization chooses to sell isopropanal. It must now decide whether to sell to producers of acetone, chemical intermediates, coatings, agricultural and biological chemicals. The latter decision reflects

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