Segmentation Analysis for Viking
Added on 2019-12-03
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INTRODUCTIONBusiness to Business Marketing refers to the marketing of products and services toorganizations which who develop products which are delivered to customers. B2B marketinghas several variations in the comparison of consumer marketing (Freeman, 2010). The presentreport includes the case study of Viking Office Products, Inc. which sells office supplies to thesmall and medium sized businesses. This report describes about the types of customers in B2Bmarket and their significance for Viking. In addition to this, it also features the comparison ofindustrial and consumer products. Further it also covers the importance of differentsegmentation. Lastly, it also covers the different classification system used in Europe and Asia.1. Critically review the types of customers in B2B market as well as the importance of them inthe context to VikingTypes of consumers in B2B Markets and their importance to VikingManufacturers: Viking sells office supplies to small and medium sized manufacturers. Producersare the businesses that develop goods in bulk to sell them in consumer market. These producersneed office supplies in carrying out their day to day business operations (Hitt, Ireland andHoskisson, 2012). Thus, they are one of the potential buyers of Viking Company. However,manufacturers need to produce their products on time and for this purpose, Viking has to supplytheir products to these manufacturers according to their demand (Hill, Jones and Schilling,2014).Re-sellers: Re-sellers are the organizations that sell goods and services produced by otherbusinesses without making any changes to the products and services. These include retailers,wholesalers and brokers. These play an important role in increasing the sales of Viking. But incase, these Re sellers do not perform their work effectively then this will affect the growth ofViking. The firm should select e Re-sellers who would be capable enough to help organizationin increasing their revenue and growth (Barney and Hesterly, 2008). They are the intermediarieswho come in between manufacturers and customers. They buy the products in bulk and selldirectly to ultimate customers. Government: Government is the major purchaser of office supplies. Governmentorganizations need office supplies in their offices to carry out their day to day tasks.Local and national government order products in bulk quantities. This provides great1
opportunity of profit maximization to Viking. In all the government organizations theyalso need office supplies so that they can provide their services properly to theircustomers.Institutions: These are the non-profitable organizations such as hospitals, careorganizations, charitable organizations, colleges, NGOs, etc. These organizations alsopurchase large quantity of goods from Viking. They are the important buyers of thecompany as these organizations supply purchased goods to needy people in order to fulfiltheir social responsibilities towards society. Thus, company needs to keep the prices lowfor these non-profit organizations (Stacey, 2007). If Viking do not supply products tothese firms according to demand, then these charitable organizations will not be able toperform their operations effectively. People who are in need support, these charitableorganization help them in providing products and these products are directly given byViking.2. Characteristics of industrial products and services, comparing and contrasting these withconsumer products and servicesComparison of industrial goods and services and consumer products and services are as follows:Consumer GoodIndustrial GoodConsumer goods are those goods which arebought personal, family or household use fromretailer.Industrial goods are those goods which arebought by organizations in order to produceother products which later on are sold toothers.Number of buyers in vase of consumer good isvery highOn this side, number of buyers for industrialgood are very less.Quantity bought in consumer good is very lowIn industrial goods, quantity bought by buyersis very high.There is an autonomous demand for consumergoods. For the ultimate consumption, thesegoods are demanded.There is a derived demand for industrial goods.These goods are used for the development ofconsumer goods (Wheelen and Hunger, 2011).Market of consumer good is high due toavailability of more customers.In industrial good, market size is small due toavailability of less customers. Examples of consumer good are furniture,Examples of industrial good are timber,2
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