Situational Segmentation of Industrial Markets

Abstract

Proposes that grouping industrial market transactions into separate segments can be aided by use of individual dimensions and combinations of dimensions. Examines the idea that knowledge about the composition of the decision‐making unit or buying centre in specified situations helps marketers to design or modify communication programmes – concentrating attention on those market segments to which the competitive advantages are most meaningful. Uses interviews with purchasing personnel (over several years with more than 30 organisations in the USA, of differing products/services, location and size). Says there is a four dimensional classification system for industrial buying situations and these are: buyers' familiarity with the buying task (new or rebuy); product type; importance of the purchase to the buying organisation; and principal type of uncertainty present in the purchase situation. Goes on to discuss these and uses tables for extra emphasis in explanation. Concludes that interview data suggest that the use of situational segmentation, when combined with segmentation based on ability to refine market programmes, select the most promising on which to focus.