Segmentation, Targeting and Buyer Behaviour

Running head: SEGMENTATION, TARGETING AND BUYER BEHAVIOUR
SEGMENTATION, TARGETING AND BUYER BEHAVIOUR
Name of the Student
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Author Note

1SEGMENTATION, TARGETING AND BUYER BEHAVIOUR
Introduction- Segmentation and Targeting:
The procedure of dividing the market from potential group of customers to various
homogenous segments on the basis of specific characteristics is known as segmentation. The
group is divided with the motive of targeting customers with the similar response process in
regards with specific marketing strategies (Camilleri 2018). The customers are targeted on
the basis of differences, accessibility and criteria size.
The b2b market can be divided in various ways, the process includes the identification
of key factors which helps in understanding the base for segmentation. The b2b customer
market can be divided on the basis of industry like health, technology, IT, transport, tourism,
food, public sector and automotive. The segment can be based on a similar geographical
region which reflects similar preferences. Segmentation can also be based on the country or
the spoken language which reflects potential as the cultural background will be similar. The
segmentation based upon the job role or the hierarchy of influencers (ace-ev.com.au 2019).
Company size can be considered as one of the major segment along with the turnover rate.
Behaviour also forms the base for segmentation as well as the customer need identification is
important for the identification of homogenous groups. The segmentation procedure can be
divided into firmogrpahic segmentation, value-based segmentation and need or preference
based segmentation. The targeting process involves the identification of job industry for the
base of targeting, which is termed as vertical targeting. Another process involves the
combination of vertical targeting with the company size and job titles.
The b2c segmentation and targeting process includes the identification of
homogenous groups among potential customers based on the process of dividing the market
based upon demographics, geographical regions, behavioural segmentation and
psychographic segmentation. The characteristic are comprised of descriptive, tangible,

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measurable and intangible in regards with the lifestyle and relationship with products and
service.
Segment Evaluation:
The company selected for this paper is Ace Yewt, which is an Australian electric
automobile manufacturer company. It is known for the purpose of saving energy and
contributing a positive environmental impact on return. The company offers reliable and sae
technological vehicle which is known for ensuring optimal range of energy utilization (ace-
ev.com.au 2019).
The segmentation of Ace Yewt for b2b market can be on the basis of:
 Industry- Healthcare industry, governmental sectors and food sector. The company
will be offering electric vehicles for these sectors and business operating in the
specific industry (ace-ev.com.au 2019).
 Value-based segmentation- The value preferred by the businesses or firms is
considered as the basis of segmenting the potential market (Payne, Frow and Eggert
2017).
 Need-based segmentation- The segmentation base focusses on the preferences of the
business customers. The company is segmenting the market based upon the need such
as transporting pathological equipment, travel requirements of home nurses, courier
facilities as well as for facilitating the catering services of businesses (Payne, Frow
and Eggert 2017).
In terms of the micro and macro segments the company’s process of segmentation includes:
Macro segmentation-
Organizational size- The size of the business or organization will determine the preference of
different vehicle models of the company (Dibb and Simkin 2016). The size will present a

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base of understanding the need and value evaluation of the business customer. For instance,
the size of catering or florist business will identify the requirements for transportation. The
company will be segmenting the market on the basis of its offerings to both SMB (Small and
Medium Businesses) and large scale businesses.
 Industry- Another base of segmentation is the homogeneity depending on the
operational activities operating in a particular industry. The electric vehicle company
of Australia, Ace Yewt will be targeting industries like healthcare industry,
governmental sectors, transportation sector and food sector business (Payne, Frow and
Eggert 2017). For instance the healthcare industry will reflect homogenous needs of
transportation than the governmental agencies.
Micro segmentation-
The micro segmentation criteria can be divided in following segments:
 Choice-based segmentation- The choice and preference of the customers can be
considered as the basis for dividing the potential market for strategizing the offerings.
For instance, the choice or preferences of the company for adopting sustainable
approach in the business activities will determine one of the bases of strategizing
offerings to a set of customers (Hall 2017).
 The decision making structure or process of various business will determine the base
of segmenting the potential market in Australia. The decision making hierarchy in the
businesses like the catering business, the courier agencies will determine the
effectiveness of applying a set of strategies by the electric vehicle manufacturing
company, Ace Yewt.
 Organizational innovativeness- The organizational approach for incorporating
innovativeness will result in the base of segmentation for the company (Singh 2018).
For instance the governmental agency’s approach of incorporating innovative