Need-based segmentation and customized communication strategies in a complex-commodity industry

Abstract

The industrial marketing literature offers few applications of the need-based or microsegmentation process in mature industrial markets. This empirical study presents an applied model to address this need. The study adapted a consumer, microsegmentation model cited by Peltier and Schribrowsky [J. Direct Mark. 11 (1997) 53.] in the direct marketing literature. A five-step framework that combined the industrial buyer behavior-based segmentation concepts (need-based) with the applied methods from the consumer-based model was developed. The research was conducted within a complex-commodity's supply chain using the adapted model to define the microsegments based on industrial buyers' motives and benefits sought. Descriptive data were also examined. Customized product services' packages and communication strategies were recommended as a result of this study. Future research is proposed to apply the model into other industrial settings.