What is the need for market segmentation in B2B markets? What are the different categories of market segments in a business market?
B2B market needs customer segmentation for efficiency purposes in terms of time, capital, and other resources. However, market segmentation enables organizations to learn their customer's behavior and achieve an adequate understanding of buyers' needs and preferences. Nevertheless, advertising campaigns can adapt customer segments to improve their commodities purchase and profitability.
2. Categories of market segmentation.
a. Demographic segmentation- it's the most popular used in the market and it takes statistical information of a group of people such as company size, job function, and industry.
b. Geographic segmentation - it classifies buyers based on their geographical boundaries such as zip code, city, country, climates, and urban or rural area among others.
c. Behavioral segmentation- it focuses on how consumers react to your products and services comprising of purchase habits, user status, brand interaction, and spending patterns.
d. Psychographic segmentation- it categories consumers and audience based on their personalities and characteristics such as personality traits, values, lifestyle, and interests among others.