B2B Segmenting

Table of Contents

Introduction

Overview of Market Segmentation

B2B and B2C Markets

Process of Market Segmentation

Form Customers into Segments

Develop a Market-Product Grid

Select Target Market

Implement Go-to-Market Plan

Conclusion

About Lazarus Research Group

Overview of Market Segmentation

Due to a large and demanding marketplace, it is often

difficult and expensive to be able to know what all

customers want and need. Customers have different

demands for the products they seek and because of this

they react differently to the marketing actions used by

marketers in regards to price, product, promotion and

distribution. This makes it challenging for marketers to

reach out and address the demands of all customers. In

order to eliminate this problem, segmentation divides

customers into groups based on their similarities.

Segmenting markets gives your company the opportunity

to reach different markets, establish target markets,

specifically address and respond better to customer

needs, develop a focused marketing plan, reduce

competition and increase sales and profit through

customer retention.

Introduction

In our series “Elements of a Successful Business Plan” we

are sharing ideas for business planning. Common elements

included in a successful business plan are competitive

analysis, value proposition, pricing structure and market

segmentation. This paper, “Market Segmentation”,

focuses on how to develop market segmentation and how

it can help companies better understand their customers.

Market segmentation is an essential tool for recognizing

and responding to the needs of prospective customers.

Key topics to consider when determining if market segmentation

is right for your company include:

• Is my company able to segment more than one

product?

• Will my pricing strategy change based on segmentation?

• Are there differences in my Business-to-Business

and Business-to-Consumer segments?

• Will segmentation affect my...