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Subject category: Marketing
Published by: Harvard Business Publishing
Published in: 1994
Length: 11 pages

Abstract

In mature industrial markets, segmenting customers by size, industry, or product benefits alone rarely is sufficient. Customer behavior regarding trade-offs between price and service also becomes an important criterion. This note offers a framework to enable such buying-behavior- oriented microsegmentation of industrial customers. It uses the framework to segment the national accounts of a large industrial company and show how the results of the segmentation study may be used to redirect the firm''s resources and customer segments.

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Abstract

In mature industrial markets, segmenting customers by size, industry, or product benefits alone rarely is sufficient. Customer behavior regarding trade-offs between price and service also becomes an important criterion. This note offers a framework to enable such buying-behavior- oriented microsegmentation of industrial customers. It uses the framework to segment the national accounts of a large industrial company and show how the results of the segmentation study may be used to redirect the firm''s resources and customer segments.

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