Rethinking business segmentation: a conceptual model and strategic insights

TLDR

Segmenting business markets is challenging and rapidly evolving, yet existing frameworks fail to guide B2B, B2B2B, and B2B2C analyses. The study aims to provide new strategic segmentation insights and enable marketers to understand and apply the proposed model. The authors introduce and empirically test a six‑cell typology that cross‑classifies markets by intermediary product use (B2B, B2B2B, B2B2C) and product standardization (standardized vs. customized).

Abstract

Segmenting business markets is challenging but potentially highly rewarding. An in-depth understanding of how to segment markets is necessary to guide the best decisions leading to profitable targeting. Business markets are changing rapidly due to new technology and a more complex business environment. Current segmentation frameworks are not sufficient to guide business-to-business (B2B), business-to-business-to-business (B2B2B), and business-to-business-to-consumer (B2B2C) market analyses. Thus, new strategic segmentation insights are required. This paper introduces and tests a new six-cell business market typology building on two key segmentation dimensions – product use by intermediaries in their marketing (B2B, B2B2B, and B2B2C) and product standardization (standardized or customized products). Examples are developed showing how this model is used by organizational marketers, research findings are presented, and a research agenda is proposed to fill the gap in the literature – i.e. understand the new model and apply appropriate business segmentation criteria.