Market Segmentation in B2B Markets
Source: B2B International
Business-to-business markets are characterised in a number of ways that makes them very different to their consumer cousins. The number of customers supplied by a chemical company is likely to number in the hundreds or small number of thousands in contrast to consumer companies that ultimately address markets of many thousands or millions. Business-to-business customers range wide in their consumption of products. A few customers dominate followed by a long tail of customers with a comparative miniscule consumption. Private individuals have physical limitations in the amount of product a single person can consume. Companies, by comparison, do not.