Targeting a business market segment is as important for B2B businesses as for business-to-consumer businesses. But many B2B business owners have no idea about what to look for in a business market segment. They don't realize that the right business market segment can produce a group of businesses with shared interests and common behaviors that make them good potential customers.
Do you know what firmographics are and how to use them to select the best business market segment for your target market?
Firmographics are facts about a businesses that help to group them into target markets, but do you know what firmographics to use in determining your best business market segment?
Three categories of firmographics help B2B businesses determine a business market segment to target. These include:
Select a Business Market Segment by Organizational Firmographics
Select a Business Market Segment by Financial Firmographics
Select a Business Market Segment by Industrial Firmographics
Selecting a Business Market Segment With Organizational Firmographics
One organizational firmographic is size. It enable you tochoose a business market segment according to number of employees, number of branches, plants, or stores, and number of locations.
Size of the business can help you determine the number and type of people that will be involved in purchasing decisions. If the organization is large, you will probably have to deal with one or more employees, who are assigned purchasing decisions. If the organization is small, you are more likely to deal with the owner, who makes all purchasing decisions. Select the size that best meets your selling preferences and your ability to serve customers well.
Age distinguishes businesses in other ways. For example, young businesses need more help in choosing the right products and services for their businesses. They will respond best to marketing directed at helping them to make good decisions, rather than just selling to them. Older businesses are more likely to know what they need, but those needs may require customized products and services.
Buinesses differ by location because people and business cultures vary by regions. Furthermore, regulations, tax laws and economic factors distinguish business by location.
You can use organizational firmographics to select a business market segment with good profit potential. Then you can target that business market.
Selecting a Business Market Segment With Financial Firmographics
A business market segment also differs by sales volume, profits and market share. These financial firmographics can help a you to determine the businesses most likely to buy your products.
For example, if you sell a machine that automates packaging products, it's more likely that businesses with large sales volume will purchase your machine than will smaller ones, whose small sales volume makes human packaging less expensive.
Ownership factors can also help you select the business market segment for your target market. You need to know whether the business leases or owns its office, plants, stores, warehouses, and equipment. By monitoring the relationship of ownership factors, you can determine relationships between these factors and the businesses needs and purchases.
Selecting the business market segment with financial firmographics that match you B2B business products and services can help you to target businesses most likely to become customers.
Selecting a Business Market Segment With Industrial Firmographics
Industrial firmographics provide another way to distinguish the best business market segment to target. Businesses differ in many ways according to the industries they operate within. Each industry has different standards, regulations, expectations, inspections, etc. that require different products and services. Determining which industry has the most need and desire for what you sell goes a long way to selecting your target market.
Other industry specific firmographics provide different business market segments that influence the types of products they need and the kinds of customers they are. Consider the following:
For example, a high-tech manufacturer uses different equipment, different components and supplies than a low-tech manufacturer.
Luxury market businesses need different production processes and buy different types of supplies than businesses who manufacture higher-volume, mass marketed products. Thus, one type will be a better potential customer for your B2B products than another.
Similarly, consultants and books publishers are both in the information business, but they have different needs and their income base is different. Book publishers earn based on the number of books they sell and how the price those books. Publishers basically sell an information product. On the other hand, consultants sell an information service and their incomes are limited to how much they earn per hour.
By understanding how industrial firmographics influence business needs, you can distinguish the business market segment most likely to provide your B2B business, new and repeat customers.
Conclusion
Selecting the best business market segments from these industrial, financial and organizational firmographics will enable you to comprise a profile of your best and most lucrative target market.
Your ability to select the best target market for what you sell is enhanced by good record keeping and research. Good records help you to recognize which business market segment provides the best customers within each type of firmographic.
Knowing which business market segment has proved the most profitable in the past and targeting those customers with products and marketing designed specifically for them, can improve sales and profitability for any B2B business.
Do you know what firmographics are and how to use them to select the best business market segment for your target market?
Firmographics are facts about a businesses that help to group them into target markets, but do you know what firmographics to use in determining your best business market segment?
Three categories of firmographics help B2B businesses determine a business market segment to target. These include:
Select a Business Market Segment by Organizational Firmographics
Select a Business Market Segment by Financial Firmographics
Select a Business Market Segment by Industrial Firmographics
Selecting a Business Market Segment With Organizational Firmographics
One organizational firmographic is size. It enable you tochoose a business market segment according to number of employees, number of branches, plants, or stores, and number of locations.
Size of the business can help you determine the number and type of people that will be involved in purchasing decisions. If the organization is large, you will probably have to deal with one or more employees, who are assigned purchasing decisions. If the organization is small, you are more likely to deal with the owner, who makes all purchasing decisions. Select the size that best meets your selling preferences and your ability to serve customers well.
Age distinguishes businesses in other ways. For example, young businesses need more help in choosing the right products and services for their businesses. They will respond best to marketing directed at helping them to make good decisions, rather than just selling to them. Older businesses are more likely to know what they need, but those needs may require customized products and services.
Buinesses differ by location because people and business cultures vary by regions. Furthermore, regulations, tax laws and economic factors distinguish business by location.
You can use organizational firmographics to select a business market segment with good profit potential. Then you can target that business market.
Selecting a Business Market Segment With Financial Firmographics
A business market segment also differs by sales volume, profits and market share. These financial firmographics can help a you to determine the businesses most likely to buy your products.
For example, if you sell a machine that automates packaging products, it's more likely that businesses with large sales volume will purchase your machine than will smaller ones, whose small sales volume makes human packaging less expensive.
Ownership factors can also help you select the business market segment for your target market. You need to know whether the business leases or owns its office, plants, stores, warehouses, and equipment. By monitoring the relationship of ownership factors, you can determine relationships between these factors and the businesses needs and purchases.
Selecting the business market segment with financial firmographics that match you B2B business products and services can help you to target businesses most likely to become customers.
Selecting a Business Market Segment With Industrial Firmographics
Industrial firmographics provide another way to distinguish the best business market segment to target. Businesses differ in many ways according to the industries they operate within. Each industry has different standards, regulations, expectations, inspections, etc. that require different products and services. Determining which industry has the most need and desire for what you sell goes a long way to selecting your target market.
Other industry specific firmographics provide different business market segments that influence the types of products they need and the kinds of customers they are. Consider the following:
For example, a high-tech manufacturer uses different equipment, different components and supplies than a low-tech manufacturer.
Luxury market businesses need different production processes and buy different types of supplies than businesses who manufacture higher-volume, mass marketed products. Thus, one type will be a better potential customer for your B2B products than another.
Similarly, consultants and books publishers are both in the information business, but they have different needs and their income base is different. Book publishers earn based on the number of books they sell and how the price those books. Publishers basically sell an information product. On the other hand, consultants sell an information service and their incomes are limited to how much they earn per hour.
By understanding how industrial firmographics influence business needs, you can distinguish the business market segment most likely to provide your B2B business, new and repeat customers.
Conclusion
Selecting the best business market segments from these industrial, financial and organizational firmographics will enable you to comprise a profile of your best and most lucrative target market.
Your ability to select the best target market for what you sell is enhanced by good record keeping and research. Good records help you to recognize which business market segment provides the best customers within each type of firmographic.
Knowing which business market segment has proved the most profitable in the past and targeting those customers with products and marketing designed specifically for them, can improve sales and profitability for any B2B business.
About the Author:
You can get more information to improve your B2B business by getting Linda Morton's free report Marketing Your Small Business. You can also get her free report on Market Segmentation. Get a totally unique version of this article from our article submission service
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