Behavioral segmentation describes a marketing strategy that has been around with us for a while now. It is only in the recent past, however, that the benefits of its use have been fully appreciated. In this marketing approach, the marketer divides the group of potential customers into a number of smaller groups. There are several criteria that are used to achieve this but the main one is the knowledge of the services or products by the customers. The pattern of responses exhibited by different customers also plays a major role in the categorization.
The use of market segmentation as a general marketing tool represents a major shift in doing business. The traditional way of reaching out to consumer was mainly through mass marketing. This method was very ineffective. In the mass marketing approach the entire pool of consumers was regarded as a single homogenous pool of customers. The message is sent out to the whole pool in the hope that a large number of potential customers will be reached.
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.
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.
Product or brand loyalty helps to keep a business going. It is a fairly common behavior among customers. To establish the presence of loyalty, a business needs to conduct research. It will be possible, after such research, to classify consumers into those who are loyal and those who are not. Efforts should be made to retain the loyal customers and to bring the not so loyal closer.
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.
The usage rate segments created can then be used in making important business decisions. The heavy users should be identified and preferably rewarded as a way of encouraging continued usage. Such reward programs are usually achieved through the use of discounts that are directly proportional to the amount of goods used. Such a move will encourage the moderate and the light users to increase their usage rates.
There are many other different ways of segmentation other than behavioral segmentation. Demographic characteristics such as gender, income and age have been used successfully in some cases. Geographical location and psychological characteristics may also be considered. The important thing to remember is that the segments must be large enough to warrant all this trouble.
The use of market segmentation as a general marketing tool represents a major shift in doing business. The traditional way of reaching out to consumer was mainly through mass marketing. This method was very ineffective. In the mass marketing approach the entire pool of consumers was regarded as a single homogenous pool of customers. The message is sent out to the whole pool in the hope that a large number of potential customers will be reached.
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.
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.
Product or brand loyalty helps to keep a business going. It is a fairly common behavior among customers. To establish the presence of loyalty, a business needs to conduct research. It will be possible, after such research, to classify consumers into those who are loyal and those who are not. Efforts should be made to retain the loyal customers and to bring the not so loyal closer.
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.
The usage rate segments created can then be used in making important business decisions. The heavy users should be identified and preferably rewarded as a way of encouraging continued usage. Such reward programs are usually achieved through the use of discounts that are directly proportional to the amount of goods used. Such a move will encourage the moderate and the light users to increase their usage rates.
There are many other different ways of segmentation other than behavioral segmentation. Demographic characteristics such as gender, income and age have been used successfully in some cases. Geographical location and psychological characteristics may also be considered. The important thing to remember is that the segments must be large enough to warrant all this trouble.
About the Author:
Read more about The Basic Facts On Behavioral Segmentation In Marketing visiting our website.
#end