Business to business market segmentation

This article discusses the characteristics of industrial markets in relation to some of the major industrial market segmentation models. To understand the different market situations, we describe a scale with simple market transactions at one end and complex relationship management at the other, suggesting that the segmentation approach must be different for each end of the spectrum. The article presents a general industrial segmentation model directed towards situations characterized by relationships and networks. The model stresses the importance of having a deep understanding of the customers' characteristics, needs, future directions, as well as identification of what kind of overall relationship is required by the customer This model involves identifying, selecting, and monitoring of segments. (C) 2001 Elsevier Science Inc. All rights reserved.