Segmenting B2B technology markets via psychographics

Segmenting B2B technology markets via psychographics

1. Kotler

   • Segmentation-targeting & positioning is the starting point for value creation and the essence of strategic marketing
   • All markets consist of segments and niches

2. An exploratory study

   • Marketing implications
     • Consider variables such as buyer needs, entrepreneurial and national culture, innovativeness, negotiation style, personality, relational style and risk in forming ad hoc customer segments and using this information to design mkt strategies
   • Psychographics was found to be a bottom-tier segmentation dimension ranking ninth of the nine B2B segmentation bases tested
   • The 5 most popular B2B segmentation bases were application/end use, firmographics, geographics, benefits and value.
   • 59% of the sample reported the use of psychographic thinking (without formal analysis) in their mkt strategy decisions
   • Future research
     • The role of business psychographics can be expanded beyond its traditional use in sales management and new product adoption
     • The sample size should be increased
     • Measurement and analytical improvements are advisable

3. PSYCHOGRAPHICS

   • Wells,1975: Quantitative research intended to place consumers on psychological dimensions
   • Demby,1989: Use of psychological, sociological and anthropological factors, self-concept and lifestyle to determine how the market is segmented by the propensity of groups within their market to make a particular decision about a product, person or ideology.
   • McDonald & Dunbar, 2005: A customer´s inner feelings and predisposition to behave in certain ways

4. Organizational psychographics

   • Can provide a strategic competitive edge

5. Business psychographics

   • The segmentation of organizational buyers into homogeneous clusters of mindsets and behaviors that are distinguished by motives, risk perceptions and social interaction styles in order to identify prospects as well as predict the predispositions of the firm´s decision makers for the sake of adapting products, marketing messages and relational selling behaviors.
   • Barry & Weinstein
     • Variables
       • Buyer needs-Entrepreneurial culture-Innovativeness-Relational style-National culture-Personality types-Risk perceptions-Negotiating style
     • Dimensions
       • Motivation
       • Risk
       • Relationships
   • Trends advocating customers segmentation by profit potential
     • Segment-of-one marketing
     • Customer loyalty initiatives
     • Customer relationship management programs
     • Web analytics