POM 2

• Geographic location In order not to dissipate selling capabilities and also to reduce travel and logistics cost, some supply companies segment organizational markets by --
• End-use application It refers to the way a product is used by a purchasing company or firm. This is a logical way to segment organizational markets because many different industries have unique needs, making it important for the supplier organization to fully understand each industry's particular product
• INDUSTRY AFFILIATION Organizations can be segmented by industry affiliation, or based on a company's primary business activity.
• BUYING PROCESS

  is the process where business buyers determine which products and services are needed to purchase, and then find, evaluate and choose among alternative brands.
• PROBLEM RECOGNITION someone in the company recognizes a problem or need that can be met by acquiring goods or services.
• PRODUCT/SERVICE SPECIFICATION Once the general need is agreed upon by those who have purchasing authority in that company, they will then narrow down the options by specifying what the product or service must offer.
• SUPPLIER SEARCH This stage relates to the search for the qualified suppliers among the potential sources.
• PROPOSAL SOLICITATION The list of qualified suppliers are now further shortened based on some critical factors. The purchasing department will ask for proposal to be sent by each supplier.
• Supplier selection The buying centre members analyze the choice of proposals and bids and select a supplier.
• Purchase order Once the winning supplier has been selected, the organization places the order. The buyer negotiates the final order, listing the technical specification, as well as reviewing shipment times and any other deliverables that may come with the sale, such as installation or product training.
• Performance Audit The final stage consists of a formal and informal review and feedback regarding product performance as well as vender performance
• MARKET SEGMENTATION is the process of dividing the market into homogeneous parts or groups.
• Consumer Segmentation Variables refer to the factors marketers use to categorize their audience into different groups.
• GEOGRAPHIC pertains to where the population is located.
• DEMOGRAPHIC refers to the general characteristics of the population.
• Psychographic these are variables that represent the psychological profile of consumers.
• Behaviorgraphic s the segmentation variable indicative of purchase behavior. most Unfortunately, it is not available to all organizations as it depends on the meticulous maintenance and upkeep of internal databases.
• TARGET MARKET After segmenting the market into various homogeneous parts (or segments possessing similar characteristics), the marketer decide which parts)/segment(s) he/she wants to actively pursue. The target market of a product or service is defined as its most probable and most logical consumers, and may likewise be its heaviest consumers. A company may, for example, decide its product's target market to be:
• ELEMENTS OF AN IDEAL TARGET MARKET: a company may finalize its selection of its market upon consideration of its conformity with the following elements
• SUBSTANTIAL the selected target market must be large enough in terms of quantity and/ or total consumption capability.
• FINANCIALLY CAPABLE must have the financial means to afford the purchase price of the product/service.
• REACHABLE must be within physical reach to permit product distribution it should also be reachable by various marketing activities (advertising, promotions, Internet and digital marketing, etc.).
• HOMOGENEOUS must react similarly to specific marketing stimuli.