Segmenting Chinese Markets
Satisfying people's needs and making a profit along the way is the purpose of marketing. However, people’s needs can differ substantially and satisfying these varying needs often requires different approaches.
The need for effective segmentation is nowhere more important than in China, which is developing into perhaps the most diverse and complex markets in the world. It is still often the case that the top 20% of customers in a business may generate as much as 80% of a company’s profit, half of which is then lost serving the bottom 30% of unprofitable customers.
China's size and complexity creates huge challenges in arriving at effective customer groupings. Business-to-business segmentation can take the form of 'demographic' segmentation, sometimes referred to as 'firmographics'. This type of segmentation is based on geography, size of company and standard industrial classifications (SICs).
Behaviour or needs based segmentation is increasingly being used in the context of b2b markets in China and the Asia-Pacific. While behavioural segmentation segments on what companies buy, what they produce and how they produce it, needs-based segmentation focuses on what companies want and what drives their actions.
B2B International can help to segment your existing and target markets in Asia more effectively and assist you in developing a more effective marketing strategy. Our segmentation research service will help you to: