Industrial market segmentation

Industrial market segmentation could be a theme for categorizing industrial and business customers to guide strategic and tactical decision-making, particularly in sales and selling. whereas government agencies and trade associations use standardized segmentation schemes for statistical surveys, most businesses produce their own segmentation theme to satisfy their explicit wants.

While like client market segmentation, segmenting industrial markets is completely different and tougher owing to bigger complexity in shopping for processes, shopping for criteria, and therefore the complexity of commercial merchandise and services themselves. additional complications embrace role of financing, contracting, and complementary products/services.

The goal for each industrial market segmentation theme is to spot the foremost vital variations among current and potential customers which will influence their purchase choices or shopping for behavior, whereas keeping the theme as straightforward as attainable (Occam's Razor). this can permit the economic marketer to differentiate their costs, programs, or solutions for max competitive advantage.