MKT 337 Study Guide - Midterm Guide: Market Segmentation
Document Summary
The business market consists of four broad segments: producers, resellers, government, and institutions. Company characteristics, such as geographic location, type of company, company size, and product use, can be important segmentation variables. Some markets tend to be regional because buyers prefer to purchase from local suppliers, and distant suppliers may have difficulty competing in terms of price and service. Therefore, firms that sell to geographically concentrated industries benefit by locating close to their markets. Volume of purchase (heavy, moderate, light) is a commonly used basis for business segmentation. Another us the buying orga(cid:374)izatio(cid:374)"s size, which (cid:373)ay affect its purchasi(cid:374)g procedures, the types and quantities of products it needs, and its responses to different marketing mixes. How customers use a product may influence the amount they buy, their buying criteria, and their selection of vendors. Many business marketers find it helpful to segment customers and prospective customers on the basis of how they buy.
