HRM 3400 Lecture Notes - Lecture 5: Industry Classification, Market Segmentation, National Accounts
23 May 2018
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HRM 3400 Lecture 5 Notes – Marketing
Introduction
• Suppliers worry that online marketplaces will drive down the prices of goods and favor
buyers.
• Suppliers also can spend a great deal of money in the setup to participate in multiple
exchanges.
• For example, more than a dozen new exchanges have appeared in the oil industry, and
the printing industry is up to more than 20 online marketplaces.
• Until a clear winner emerges in particular industries, suppliers are more or less forced to
sign on to several or all of them.
• Yet another issue is potential government scrutiny of exchange participants—when
competitors get together to share information, it raises questions of collusion or
antitrust behavior.
• The nature of the Web enables firms to gather more information about customer
behavior and preferences as customers and potential customers gather information and
make their purchase decisions.
• Aalysis of this data is opliated eause of the We’s iterativity ad eause eah
visitor voluntarily provides or refuses to provide personal data such as name, address, e-
mail address, telephone number, and demographic data.
• Internet advertisers use the data to identify specific portions of their markets and target
them with tailored advertising messages.
• This practice, called market segmentation, divides the pool of potential customers into
subgroups usually defined in terms of demographic characteristics, such as age, gender,
marital status, income level, and geographic location.
• In the past, market segmentation has been difficult for B2B marketers because firm
graphic data (addresses, financials, number of employees, industry classification code)
was difficult to obtain.
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