How to Segment Business Markets Step-by-Step

An error occurred trying to load this video.

Try refreshing the page, or contact customer support.

Coming up next: Positioning and Differentiation in Consumer Marketing

You're on a roll. Keep up the good work!

Take Quiz Watch Next Lesson
Your next lesson will play in 10 seconds
  • 0:04 Business Markets
  • 0:31 Four Broad Business…
  • 1:25 Segmenting by Company…
  • 2:37 Segmenting by Buying Processes
  • 3:37 Lesson Summary
Add to Add to Add to

Want to watch this again later?

Log in or sign up to add this lesson to a Custom Course.

Login or Sign up


Recommended Lessons and Courses for You

Lesson Transcript
Instructor: Jennifer Lombardo
Discover the four segments of business marketing in this lesson. You will also learn the distinguishing characteristics of each segment so you may easily identify each of them.

Business Markets

You may have heard the term 'B2B'. B2B stands for business-to-business marketing. The business market is where companies sell their products or services to other businesses. Business markets can also be segmented into easily identifiable areas. The town expert is Postmaster Joe because he knows the area better than anyone, and he is going to give us a tour of Ninja Town to explain how businesses are segmented.

Four Broad Business Market Segments

Postmaster Joe's territory is huge. He covers the entire southern part of Ninja Town and sells companies metering machines and other mailing products. He also delivers mail to all four different types of business markets, which are producers, resellers, government and institutions. A Ninja Town producer would be the steel factory that produces the material for the local automakers. Postmaster Joe visits a few resellers every day on his route. Resellers buy products and then resell them to other businesses. Some examples include distributors such as food warehouses and brokers. Postmaster Joe's route covers a ton of government markets, such as the navy yard, motor vehicle department and defense contractors. The last segment that the mailman visits every day consists of institutions such as hospitals, prisons, churches and libraries.

Segmenting by Company Characteristics

Postmaster Joe loves his route and all of the businesses in town. He agrees with the business marketing strategy of segmenting according to company characteristics. He divides his route up as well in the same manner. Company characteristics include segmentation variables of company size, product use, geographic location and even type of company. He uses geographic segmentation for his route, as it makes his route efficient and productive to deliver mail in order of location.

To unlock this lesson you must be a Member.
Create your account

Register to view this lesson

Are you a student or a teacher?

Unlock Your Education

See for yourself why 30 million people use

Become a member and start learning now.
Become a Member  Back
What teachers are saying about
Try it risk-free for 30 days

Earning College Credit

Did you know… We have over 160 college courses that prepare you to earn credit by exam that is accepted by over 1,500 colleges and universities. You can test out of the first two years of college and save thousands off your degree. Anyone can earn credit-by-exam regardless of age or education level.

To learn more, visit our Earning Credit Page

Transferring credit to the school of your choice

Not sure what college you want to attend yet? has thousands of articles about every imaginable degree, area of study and career path that can help you find the school that's right for you.

Create an account to start this course today
Try it risk-free for 30 days!
Create An Account