A review of industrial market segmentation research and a proposal for an integrated segmentation framework

Abstract

This article focuses first on a review of published articles on industrial market segmentation. The origin of formal propositions for segmenting industrial markets is presented. Next, industrial buying models and studies are shown to be a source of industrial market segmentation variables. A review of segmentation variables leads to a check list comprising four main classes of variables. Industrial market segmentation can be structured as a two step process with macro-segmentation followed by micro-segmentation or as a multiple step process (nested approach) proceeding from general to specific variables. Industrial market segmentation is then examined regarding its implementation in companies and specific segmentation variables are reviewed with respect to their degree of availability, appropriateness and usage. Finally, multi-participant buying decisions in both the consumer market and industrial market are integrated in a common segmentation framework.