The Basic Facts On Behavioral Segmentation In Marketing
Behavioral segmentation is strategy that is commonly used in marketing. The strategy entails the subdivision of a consumer pool into smaller units that share a number of characteristics. The main criterion that is used is the knowledge of different groups of consumers as regards the use of different goods and services. Using this strategy many businesses have been able to maximize on their sales because each customer has been served well.
There is sharp contrast between market segmentation and mass marketing. The latter is the traditional method of advertisement that approached the market as a unit. The disadvantage of doing this is that some customers will not have their needs fully met and this reduces the cells of the business in the end. Segmenting is more customer-centered and rewards the users well.
There are a number of behavioral attributes that may be used to segment large markets. A commonly used one is where customers are categorized based on occasional buying behaviors. An example is where sales for love gifts increase around the time of Valentine. Also, chocolates are also sold more during festivities. Businesses will need to categorize their customers based on these behaviors if they are to meet these needs more effectively.
It is also to create segments that are sought by customers when using various goods or services. Different customers may have the same or different reasons for using products. This is especially common for goods that have multiple uses. There is a need to understand the groups that demand the product for each of the available benefits. The product may be modified in a manner to suit a group or groups of consumers.
Another significant customer behavior that may be used in segmentation is product loyalty. In many industries there are customers who remain loyal to given brands of products for many years and this is very important in the sustenance of the products. Marketers need to identify who these customers are and seek ways on which they can maintain the loyalty. Rewarding loyal customers would be a good way of reinforcing the loyalty as well as encouraging the customers that are not as loyal to use the products more often.
Another attribute used in segmenting the market is usage rate of various products. Since customers have varying usage rates, they can be categorized into various groups comprising the light, moderate and heavy users. Each of these groups has a specific need or needs that should be identified. For example, heavy users need frequent supply of products to the outlets close to them.
Important marketing decisions can be made based on the usage rate segments. It is important to carry out research to establish the reasons behind the differences in usage rate among the various groups. Appropriate steps can then be taken depending on the findings. The heavy and moderate users can be rewarded with discounts so as to challenge the light users. More aggressive marketing campaigns may be needed to attract the light users.
Other than behavioral segmentation, there are many other ways in which a market can be segmented. Geographic, demographic and psychogenic characteristics can also be used. All the segments that have been created must be economically significant to warrant changes in product design otherwise such a move would result in unnecessary losses.
There is sharp contrast between market segmentation and mass marketing. The latter is the traditional method of advertisement that approached the market as a unit. The disadvantage of doing this is that some customers will not have their needs fully met and this reduces the cells of the business in the end. Segmenting is more customer-centered and rewards the users well.
There are a number of behavioral attributes that may be used to segment large markets. A commonly used one is where customers are categorized based on occasional buying behaviors. An example is where sales for love gifts increase around the time of Valentine. Also, chocolates are also sold more during festivities. Businesses will need to categorize their customers based on these behaviors if they are to meet these needs more effectively.
It is also to create segments that are sought by customers when using various goods or services. Different customers may have the same or different reasons for using products. This is especially common for goods that have multiple uses. There is a need to understand the groups that demand the product for each of the available benefits. The product may be modified in a manner to suit a group or groups of consumers.
Another significant customer behavior that may be used in segmentation is product loyalty. In many industries there are customers who remain loyal to given brands of products for many years and this is very important in the sustenance of the products. Marketers need to identify who these customers are and seek ways on which they can maintain the loyalty. Rewarding loyal customers would be a good way of reinforcing the loyalty as well as encouraging the customers that are not as loyal to use the products more often.
Another attribute used in segmenting the market is usage rate of various products. Since customers have varying usage rates, they can be categorized into various groups comprising the light, moderate and heavy users. Each of these groups has a specific need or needs that should be identified. For example, heavy users need frequent supply of products to the outlets close to them.
Important marketing decisions can be made based on the usage rate segments. It is important to carry out research to establish the reasons behind the differences in usage rate among the various groups. Appropriate steps can then be taken depending on the findings. The heavy and moderate users can be rewarded with discounts so as to challenge the light users. More aggressive marketing campaigns may be needed to attract the light users.
Other than behavioral segmentation, there are many other ways in which a market can be segmented. Geographic, demographic and psychogenic characteristics can also be used. All the segments that have been created must be economically significant to warrant changes in product design otherwise such a move would result in unnecessary losses.
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posted by Vittoria @ December 19, 2013
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