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RUNNING HEAD: MARKET SEGMENTS

MARKET SEGMENTS

[Name of the Writer]

[Name of the Institution]

Market Segmentation

Introduction

Whether a start-up business is on a smaller level or larger, there is always a need to consider micro and macro segmentations. These segmentations are considered to be the variables to segment organizational markets. The matter of fact is that organizational markets can be segmented on multiple factors. Such factors are categorized into micro and macro segmentations. In my case, I would not choose only one from these rather I prefer both; macro segmentation and micro-segmentation for marketing segmentation. There are certain factors that must be taken into consideration in market segmentation. However, macro segmentation is employed first and then there comes micro-segmentation to be employed during segmenting markets (De, 2018).

Macro Segmentation

When it comes to segment organizational market, an organization tends to use macro segmentation variables such as the organization’s location, its size, and its industry.

Geographical Segmentation

Studies and researches show regional variations when it comes to purchasing needs and practices. Taking an example of any particular company, there will be seen a purchase manager encompass the authority form taking decision-related to purchases. On the other hand, if the same purchase manager was in Japan, he would have to build consensus among different stakeholders before making any sort of decision-related to purchases.

Organizational Size

There is a high chance that a large organization can be seen buying the same product as a smaller organization. However, it must be taken into consideration that the large organization would buy products differently. The matter of fact is that the large organization intends to buy in larger lots and can be having a formal buying process. There is a high chance for an organization to design a unique marketing mix for serving all major clients. Moreover, there can be a need for having dedicated salespeople for serving all clients.

The Industry

Whether the industry to which an organization is a part of may serve globally or it is on a state level, the industry tends to determine what the organization would buy (De, 2018). All industries pertain to have a unique requirement of products. Apart from this, the industry would be in a need of a specific level of quality in products that it buys. Hence, if an organization sells some technological products like computers to clients in different industries, the organization may not be able to sell in the same way in other industries. Therefore, there is a high need for the company to have an in-depth analysis of the requirements of the targeted industry before starting to introduce its products in that industry.

Micro-Segmentation

All organizations tend to buy in a different manner than others in the same industry. Along with this, there is a high need for the seller to develop a detailed understanding of the ways in which the company tends to buy (Hutt et al., 2014). It is of quite an important that salespeople spend the specific time to understand the roles that are played by different functions in the process of buying. Moreover, there is a high need for understanding the philosophy of buyers in terms of its view on price, emphasis on quality, and intent to develop a healthy relationship with the seller.

Decision Making Process

There is no doubt that the size of DMU is dependant on the product type which is being bought. Apart from this, there is another dependency of DMU which is on whether the product has been bought earlier. It has been observed, in certain cases when the size of DMU is large, it results in the buying process to be no longer. The reason for that is quite simple as in such cases the suppliers will be evaluated on all the important parameters (Ciuna et al., 2017).

In the case of quality engineers, they will be ensuring that suppliers have the capacity to meet quality standards. Along with this, the role of product developers will be to ensure that the components tend to serve the foundation for which they are designed. Due to this reason, there is a high need for a seller to be willing for expanding resources and time with a sole purpose to deal with a large DMU. One thing that must be taken into consideration is the fact that the buying process is short at times when the DMU size is small, and when the products are brought earlier.

Buy Class

Categorizing organizational purchases into a new task, modified rebuy, and straight rebuy is quite helpful. It does not matter whether a certain purchase is a new task, modified rebuy, or straight buy, it will always be affecting how long the buying process tends to take. The matter of fact is that when a seller categorizes a purchase into one of the buying class, he then becomes able for estimating the resources and amount of time he will have to expend for clinching a deal. If an organization intends to buy an item the first time, it is quite obvious that the organization will be preferring those suppliers who would have the patience for educating the buyer company.

Choice Criteria

The choice criteria of any company are dependant on the way it decides competing in the marketplace. Due to this reason, a buyer will not be seen budging on quality (MANUAL, 2019). The reason for that is quite simple as it makes a premium product. There is a high need for a seller to understand what all buyers tend to achieve its target market. In a nutshell, it can be said that a seller needs to have a different marketing mix at times when buyers are having different choice criteria.

Decision-Making Unit Structure

Studies and researches have shown that in any organization, many people tend to influence the decision behind any purchase. There some organizations where there is an existence of a Decision-Making Unit or simply known as DMU. The members of DMU exert a great influence on the way in which the buying process can proceed and who can be probably selected as the supplier. It simply depends on the products that who will be the members of DMU.

Conclusion

One of the important variables is centralized versus decentralized purchasing. The reason for that is quite simple as its influence is notable on the purchase decision. The matter of fact is that organizational markets can be segmented on multiple factors, and these factors are categorized into micro and macro segmentations. There is a high chance for an organization to design a unique marketing mix for serving all major clients. There is a high need for the company to have an in-depth analysis of the requirements of the targeted industry before starting to introduce its products in that industry.

All organizations tend to buy in a different manner than others in the same industry. Along with this, there is a high need for the seller to develop a detailed understanding of the ways in which the company tends to buy. There is a high need for a seller to understand what all buyers tend to achieve its target market. The members of DMU exert a great influence on the way in which the buying process can proceed and who can be probably selected as the supplier.

References

Ciuna, M., Milazzo, L. and Salvo, F., 2017. A mass appraisal model based on market segment parameters. Buildings, 7(2), p.34.

De Mooij, M., 2018. Global marketing and advertising: Understanding cultural paradoxes. SAGE Publications Limited.

Hutt, MD & Speh, TW 2014, Business marketing management: B2B, EMEA Edition, 1st edn, Cengage Learning. Application of concepts/theories

Leonidou, L.C., Katsikeas, C.S., Samiee, S. and Aykol, B., 2018. International marketing research: A state-of-the-art review and the way forward. In Advances in Global Marketing(pp. 3-33). Springer, Cham.

MANUAL, I., 2019. Marketing Management.

Marandu, E.E., 2015. Strategy factors associated with the export performance of manufacturing firms. In Proceedings of the 2010 Academy of Marketing Science (AMS) Annual Conference (pp. 7-11). Springer, Cham.