B2B Segmentation

Q - what is B2B market segmentation?

B2B market Segmentation means dividing a big business market into small groups of Companies that share similar properties, needs, or ways of working.

this helps businesses create better marketing, sales palns, and product of each group.

Q - Why is B2B market segmentation Important?

• personalized marketing and sales: You can send messages that fit each group, making them more interested.
• Use resources wisely: Focus on groups that bring the most profit.
• Better product fit: Understand what each group really needs and create better products.
• Keep customers happy: Meet each group's unique needs, so they stay loyal.

=>B2B element

Business: Represents the companies involved in B2B.

Marketing: Refers to promotional activities targeted toward other businesses.

Raw Materials: Inputs or basic materials that businesses purchase from other businesses to create products.

Sales: The process of selling goods or services from one business to another.

Supply Chain: The network of businesses involved in producing, handling, and distributing a product.

Sub Components: Smaller parts or elements that a business purchases from another business for assembly or production.

Transaction: The financial exchange between businesses during B2B operations.

Markets: The business environments or sectors where these B2B transactions happen.

=> Segmentation og B2B

1. Firmographic Segmentation (based on company details)

• Industry (like healthcare, finance)
• Company size (how many employees or revenue)
• Location (country, city)
• Ownership (private, public, government)

2. Behavioral Segmentation (based on company actions)

• How they buy
• Brand loyalty
• How often they use your product
• How fast they adopt new technology

3.Needs-Based Segmentation (based on what they need)

• How much customization they want
• Service expectations
• How sensitive they are to price
• Features they want in a product

4. Decision-Making Process Segmentation

• Whether buying is centralized or decentralized
• How long it takes them to decide
• How many people are involved in buying

5. Transactional Segmentation (based on past buying data)

• What they bought before
• Average order size
• Payment habits
• How valuable they are as a long-term customer