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.
The strategy is very different from the previous approach of mass marketing. In the latter, all the consumers were considered the same. Advertisements were typically targeted at the larger market in the hope that potential customers will be reached. Not only was this approach an expensive undertaking, but the returns were also not that good. Segmenting allows for specific groups to be targeted.
There various types of behaviors frequently used in the creation of segments. Occasional buying refers to the act of buying goods or demanding for services at given times and at no other time. For example, the demand for Christian gifts tends to be particularly high at the time of Easter and Christmas. Similarly, cakes and chocolates sell highly during festivities. The business needs to recognize the presence of these buyers and to plan accordingly.
Even for the same product, there is some form of difference in the reasons that lead to usage of the given products. Some customers will choose to use a product for a given reason and others will use for an entirely different reason. The producer needs to be aware of the existence of the various groups and to modify their products in a manner that all the concerned groups will be satisfied.
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.
The market can also be broken into segments based on the different usage rates of products among customers. The main groups here would be the heavy, moderate and the lesser users. Heavy users may welcome a decision to repackage products in a manner that helps them get more from a smaller package.
By identifying usage rate segments, it will be possible to make important business decisions. The group with lesser usage rates, for example, can be targeted for more aggressive advertisement campaigns aimed at improving demand for the products or services. Similarly, the moderate and heavy users can be rewarded so as to encourage them to continue using the products frequently.
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.
The strategy is very different from the previous approach of mass marketing. In the latter, all the consumers were considered the same. Advertisements were typically targeted at the larger market in the hope that potential customers will be reached. Not only was this approach an expensive undertaking, but the returns were also not that good. Segmenting allows for specific groups to be targeted.
There various types of behaviors frequently used in the creation of segments. Occasional buying refers to the act of buying goods or demanding for services at given times and at no other time. For example, the demand for Christian gifts tends to be particularly high at the time of Easter and Christmas. Similarly, cakes and chocolates sell highly during festivities. The business needs to recognize the presence of these buyers and to plan accordingly.
Even for the same product, there is some form of difference in the reasons that lead to usage of the given products. Some customers will choose to use a product for a given reason and others will use for an entirely different reason. The producer needs to be aware of the existence of the various groups and to modify their products in a manner that all the concerned groups will be satisfied.
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.
The market can also be broken into segments based on the different usage rates of products among customers. The main groups here would be the heavy, moderate and the lesser users. Heavy users may welcome a decision to repackage products in a manner that helps them get more from a smaller package.
By identifying usage rate segments, it will be possible to make important business decisions. The group with lesser usage rates, for example, can be targeted for more aggressive advertisement campaigns aimed at improving demand for the products or services. Similarly, the moderate and heavy users can be rewarded so as to encourage them to continue using the products frequently.
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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