Have you ever wondered how segmenting the industrial market is significant in facilitating sales and marketing of the product/services of your industrial company? Do you know how industrial market segmentation aids in digital marketing for industrial products/services? This article endeavors to answer these questions by giving useful insights into the industrial market segmentation.
Industrial Market Segmentation – Meaning and Bases
It is a system to identify and categorize the diversified potential customers of an industrial market or B2B market into different groups. It aids in making strategic and tactical decisions relating to the sales and marketing of the industrial products/services in the chosen market segment. However, the complexity of the products/services and buying procedures in the industrial markets makes industrial market segmentation more challenging and intricate than customer market segmentation.
Different parameters for industrial market segmentation are as below –
Different types of industries form different types of industrial markets for B2B products. These industries are thus segmented as automobiles, IT, chemicals, FMCG, textiles, iron & steel, services, and so on.
B2B markets are segmented based on geographical locations as follows -
- Based on distance, markets are segmented as local, regional, domestic, and international markets.
- Based on the location of the buyers, markets are segmented as rural (buyers located in the countryside) and urban (buyers located in a city or a town).
Industrial market segmentation is also done based on the diverse nature of operations performed by the industrial units. This includes manufacturing, assembling, distributing, retailing, consulting, etc.
Consumption Rate or Size
Based on the annual consumption of resources and the size of orders processed, industries are segmented as large, medium, or small scale industries.
Based on ownership structure, industrial companies are classified as sole proprietorships, partnerships, private, public, government, and corporations.
Different buying techniques adopted by different industrial buyers segments the industrial markets or customers as tender or sealed-bidding, leasing, service contracts, direct purchasing, and agency-approved purchasing.
The mode and time of payment adopted by buyers segments them as – cash purchasers, credit purchasers, full-paying purchasers, and installment-paying purchasers.
Influence Of Industrial Market Segmentation On Industrial Marketing Strategies
Industrial market segmentation plays a significant role in crafting suitable industrial marketing strategies for your company. When markets are segmented, you can select one or more industries or specific segments of a marketplace as a target market to identify the type of industrial markets or customers that your industrial company intends to serve (targeting and positioning strategies). You can thus decide if you want to explore new markets with existing products, introduce new products into existing markets, or develop new products to introduce in new markets.
Segmentation also helps you in modifying your products/services and preparing distinct industrial marketing strategies to promote them in the chosen customer group or market segment (promotional strategies). Similarly, it influences the pricing strategies for your buyers based on their mode of payments and buying methods.
Market segmentation assists industrial marketers to plan different marketing strategies for different geographical locations. Consequently, marketing plans for the domestic market differ from that of an international market, or buyers in rural markets are treated differently from buyers in urban markets. Similarly, marketing strategies are different for different company sizes and industry types. Marketers evaluate the operational, financial, and technical competencies of the prospective buyers in each market segment to design an effective marketing plan for industrial companies.
Digital Marketing For Industrial Companies
In today’s highly digitized world, digital or internet marketing is making raves across all industries and market segments. Digital marketing tools (such as SEO, UI/UX, pay-per-click advertising, email marketing, industrial content marketing, and online advertising on various social media platforms) aid in attracting high-value traffic to your company’s website. These tools also facilitate in reaching potential customers in the target markets effectively and innovatively.
Industrial companies hire the services of digital marketing agencies to formulate wide-ranging internet marketing and brand strategies for their products/services. These agencies make strategic B2B digital marketing plans to provide an extensive reach to the companies in different industrial market segments.
So, employ the services of a leading digital marketing company or agency to drive sales for your industrial company, generate qualified online leads, and grow your business in the digital space.
Industrial market segmentation is a mechanism through which large heterogeneous industrial markets are categorized into smaller groups. Industrial marketers use the parameters of segmentation to plan digital growth marketing strategies relating to price, positioning, and promotion of the products/services. Amura, a leading growth marketing agency offers specialized services to promote the products/services of industrial companies in diverse market segments. This helps in deriving maximum competitive advantage for the business in the industrial market.