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Segmenting B2B technology markets via psychographics (Marketing…
Segmenting B2B technology markets via psychographics
Formula segmentation, targeting and positioning (STP) from Kotler and Keller
Starting point for value creation
Essence of strategic
marketing
All markets consist of segments and niches
Success results from the target markets
Psychographics
Segmentation
Often used to differentiate target markets and provide an overall basis for promotional strategy via personality traits of lifestyles.
Marketers should view psychographics as a contributor to a successful segmentation project
Key marketing activity. ‘Finding the sweet spot’. Strategy that leads to superior profitability
Definition
Quantitative research intended
to place consumers on psychological dimensions
The 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
Provide a strategic
competitive edge
In spite of the acknowledged usefulness of segmentation by psychographics, it is infrequently utilized
Psychographic analysis is viewed as costly, subjective and
difficult to measure
Even more complicated in BTB markets: many individuals involved, special justifications, authorizations and approvals often restrict the influence of personality on buying decisions
Conceptual model: Three major dimensions
Motivation
Buyer needs
Entrepreneurial culture
Innovativeness
Risk management
Risk perceptions
Negotiating style
Relationship style
Relational style
National culture
Personality types
Major findings of the research
Effectiveness of psychographics as a B2B
segmentation base
Only 22% of marketing executives
reported using this approach
Geographics and
firmographics are the top two industrial segmentation variables
Although its use was quite limited, psychographics fared extremely well in target marketing
success. Psychographics was rated as the most
effective B2B segmentation base
Relationship between firmographic and demographic variables, and the use of B2B psychographics
No significant differences evidenced among these variables
The concept of the three-component model of B2B psychographics
All eight of the psychographic variables proposed were
cited by the respondents
3.3 variables in their
psychographic analyses: 1.3 motivation, 1.3 relationship style and 0.7 risk management
variables
Marketing implications. The value of B2B psychographics
Design marketing strategies
Important part of business marketers' segmentation toolkits along with firmographics, geographics, application/end use benefits, value and other dimensions
Firms using business psychographics were 24% more successful than average in target marketing success.
Valuable marketing investment
Companies that lack seasoned marketing managers are most likely to benefit from B2B psychographic research studies
Firms not using psychographic insights have a lack in market orientation. This limits their success in understanding target markets and finding new niche opportunities
The adoption of behavioral segmentation perspectives can reward these organizations in increased customer focus and market performance