82 Strategic Marketing: Planning and ControlVariables Examples
Macro Segmentation- Size of organisation Large, medium or small
- Geographic location Local, National, European Union, Worldwide
- Industrial sector Retail, engineering, financial services
- End market served Defined by product or service
Micro Segmentation - Choice criteria Quality, delivery, value in use, supplier reputation, price
- Structure of DMU Complexity, hierarchical, effectiveness
- Decision-making process Long, short, low or high conflict
- Buy class New task, straight or modified re-buy
- Importance of purchasing High or low importance
- Type of purchasing organisation Matrix, centralised, decentralised
- Innovation level of organisation Innovative, follower, laggard
- Purchasing strategy Optimiser, satisficer
- Personal attributes Age, educational background, risk taker/adverse, confidence level
Figure 4.21
Organisational macro and micro segmentation
individuals involved in the DMU of an organisation will vary, as will
its size and complexity.
● The decision-making process: This can be short and straightforward or
complex and time consuming. This will largely be dependent on the
size and complexity of the DMU.
● Structure of the buying function: The buying function can be centralised
or decentralised. Centralised buying allows an individual buyer to
specialise in purchasing particular types of product categories. An
individual is responsible for buying much larger volumes per pur-
chase than under a decentralised structure. This allows them to nego-
tiate larger discounts. In centralised structures the professional buyer
has much greater influence within the DMU over technical advisors
compared to buyers in decentralised systems.
● Attitude towards innovation: There may be specific characteristics that
mark out innovative companies. Identifying companies that exhibit
this profile will allow a segment to be established at which new prod-
ucts can be initially targeted. There are organisations that are followers
and only try a product once innovators have already adopted it.
Identifying these companies can also be useful to a marketer.
● Key criteria used in reaching a decision on a purchase: These can include
product quality, price, technical support, supply continuity and reli-
ability of prompt deliveries.
● Personal characteristics of decision makers: Factors such as age, educa-
tional background, attitude towards risk and style of decision making
can potentially be used to segment the market (Figure 4.21).