Segmentation in Business to Business Markets: Response to Article

Paper Type:  Essay
Pages:  2
Wordcount:  435 Words
Date:  2021-03-04

The business-to-business market consists of consumers with diverse interests in the products and is usually made up of individuals of different backgrounds and behavior. Therefore, the B2B market cannot be approached as a homogeneous mass, making it necessary for the business-to-business companies to group the market and identify their target consumers to sell their products effectively (Lilien & Grewal, 2012).

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Segmentation is a tool that is vital in guiding business decisions on how to reach out to the consumer. This is achieved by apportioning a wide target marketplace into subsections of trades units of customers , or that of states which as a common want or interest , and main concern by coming up with an implementing strategies that is aimed on arresting them . There are various strategies that one may consider when it comes to the process of segmentation. Feature-based and customer behavior-based approaches are the most popular on the market nowadays (Brenan & McDowell, 2014). Companies have adopted various segmentation strategies. The benefits or drawbacks of a segmentation method are determined by the business objectives, resources, and target consumer.

The major advantage that one may derive from using the feature-based approach is that the enterprise can use the consumer's profile such as intent to purchase to improve sales. The other advantage is that the business-to-business markets consist of a small number of users that make it easier to sample and investigate through the feature-based approach (Lilien & Grewal, 2012). The feature-based strategy is rather rational instead of emotional. According to Brenan & McDowell, (2014), understanding the consumer behaviors may be more powerful than the feature-based approach if well implemented. This means you will need to understand your customer needs and thus provide him/her with the want he/she is missing. So you as a seller you will seal the client need with not what you sell but what the client need and that why it is considered a powerful tool because it gives or provides solution to its customers. However, it's hard to look at the customer and understand their feelings or needs and thoughts. Collecting data onto clients in the business-to-business markets when comparing to the feature-based method, is also time-consuming and hectic sometimes.

In conclusion, segmentation is a vital aspect of the company business marketing. The choice of segmentation method and the succeeding marketing strategy depends on the nature of the target market regarding size, profitability and consistency. The company objectives and resources determine the decision to group the market.


Lilien, G. L, & Grewal, R. (2012) Handbook of Business-to-Business Marketing. Cheltenham: Edward Elgar Pub .

Brennan, R, Canning, L, & McDowell, R. (2014) Business-to-business marketing.

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Segmentation in Business to Business Markets: Response to Article. (2021, Mar 04). Retrieved from

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