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Example: Segmentation for Heavy Equipment Buyers (Business Customers)


                       Partner                              Institutional
Total System Price     Common interest                      IBM syndrome
(Long-term             Long-term view                       Risk averse
analytical approach    Relationship important               Litigous
to determining value
                       Open communication                   Decision making unit
                                                            Brand sensitive




                                                                                            Attitude to Price
                       Deal Seeker                          Egotists
                       Does research                        Tough negotiators
Acquisition Price      Open communicator                    No relationship
(more focus on         Relationship – get last look         Needy
upfront costs          One-off purchaser                    Shop your bid
                                                            Will mistreat you



                       Commodity Buyer                      Buyers from Hell
                       Uninformed                           Want everything
                       Don’t learn from experience          Take, take, take
Price                  Tight fisted                         Should know better
is everything          Uninvolved in gensets?




          Independent                           Customer desire for                High Maintenance
                                              pre & post sales support
Key Market Segmets
                                     High end
                                     (Brand, Quality)

                          Partners
                            20%
                                               Institutional
                                                   11%


Low                                                            High
Support                                                        Support
          Deal Seekers                       Egotists
              20%                             10%




            Commodity Buyers                Buyers from Hell
                 26%                             13%


                                     Low end
                                     (Price)

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B2B Segmentation-Heavy Industry

  • 1. Example: Segmentation for Heavy Equipment Buyers (Business Customers) Partner Institutional Total System Price Common interest IBM syndrome (Long-term Long-term view Risk averse analytical approach Relationship important Litigous to determining value Open communication Decision making unit Brand sensitive Attitude to Price Deal Seeker Egotists Does research Tough negotiators Acquisition Price Open communicator No relationship (more focus on Relationship – get last look Needy upfront costs One-off purchaser Shop your bid Will mistreat you Commodity Buyer Buyers from Hell Uninformed Want everything Don’t learn from experience Take, take, take Price Tight fisted Should know better is everything Uninvolved in gensets? Independent Customer desire for High Maintenance pre & post sales support
  • 2. Key Market Segmets High end (Brand, Quality) Partners 20% Institutional 11% Low High Support Support Deal Seekers Egotists 20% 10% Commodity Buyers Buyers from Hell 26% 13% Low end (Price)