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Business Segmentation Variables
Disciplines > Marketing > Understanding Markets > Business Segmentation Variables Size | Market | Strategy | See also
If you sell to the general public, then consumer segmentation is likely to be very useful. But if you sell to businesses, then different variables are needed. This segmentation of businesses is sometimes called 'firmographics'. Here are just a few of the many variables by which you can segment business customers. ModelBusinesses are based on basic designs or models that shape how the business is designed. Business typeJust the basic business type can tell a lot about how the business operates. The business type includes wholesaling, manufacturing and retailing. Financial modelThe big question for any company is how they are going to make money. This includes factors such as cost management and pricing. Organization designTo achieve their goals, the company structures itself in certain ways. This includes process patterns, the reporting hierarchy and cultural values. SizeThe size of the company can impact a number of factors including the potential for custom and the stability into the future. FinanceSize indicators can be calculated in a number of financial ways, including revenue, profit, share value and so on. CustomersAnother way of determining size is the number of their customers, perhaps as measured by the number of sales per year. EmployeesA fairly stable indicator of size is the number of employees, although industry and business type can vary these significantly. A large company can employ few people when much is automated or outsourced. MarketThe market served by the company can be helpful in determining how to serve them. StageIf the company serves their customers an early market, then this is different to them serving a later diffusion stage. StabilityIf the company's business is with many new customers with loss of old customers then they will depend heavily on marketing and sales rather than customer loyalty. StrategyThe company's strategy may be another dimension on which they may be served differently. SurvivalA survival strategy is likely to mean close control of costs and heavy retention of existing customers. GrowthA growth strategy means aggressively growing the overall market or competing for customers served by their competitors. OutsourcingAn outsourcing strategy happens where the company sees itself more as a management unit and is ready to farm work to outsiders (which could be you!). See also
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Site Menu |
| Home | Top | Quick Links | Settings | |
Main sections: | Disciplines | Techniques | Principles | Explanations | Theories | |
Other sections: | Blog! | Quotes | Guest articles | Analysis | Books | Help | |
More pages: | Contact | Caveat | About | Students | Webmasters | Awards | Guestbook | Feedback | Sitemap | Changes | |
Settings: | Computer layout | Mobile layout | Small font | Medium font | Large font | Translate | |
| Home | Top | Menu | Quick Links | |
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