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There are many different ways by which a company can segment its market, and the chosen process varies from one product to another. Further, the segmentation process should be an ongoing activity. Since markets are very dynamic, and products change over time, the bases for segmentation must likewise change. (See Table 2.1)
| Primary dimension | Consumer market | Industrial market |
|---|---|---|
| Characteristics of person or organization | Geography, age, sex, race, income, life cycle, personality, lifestyle | Industry (SIC), location, size, technology, profitability, legal, buying situation |
| Purchase situation | Purpose, benefits, purchase approach, choice criteria, brand loyalty, importance | Volume, frequency, application, choice criteria, purchasing procedure, importance |
In line with these basic differences we will first discuss the bases for segmenting ultimate consumers followed by a discussion of the factors used to segment industrial users.
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