Friday, December 27, 2013
The Basic Facts On Behavioral Segmentation In Marketing
By Harriett Crosby
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 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.
Occasional buying is a common behavior that is exhibited by different groups of customers. Some goods or services appear to be increasingly demanded during specific occasions and at no other times of the year. For instance, religious gifts are usually on high demanded during religious seasons and occasions such as Christmas and Easter. The business needs to identify these users and to satisfy them appropriately.
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.
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 usage rate of different customers is another criterion commonly used. For any given service or product, the rate usage is variable among different consumers. The main groups that can be considered are the heavy, the moderate and the light users. Usage rate can also be regarded in terms of quantity. This refers to the amount of goods that are bought at any given time.
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.
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.
Occasional buying is a common behavior that is exhibited by different groups of customers. Some goods or services appear to be increasingly demanded during specific occasions and at no other times of the year. For instance, religious gifts are usually on high demanded during religious seasons and occasions such as Christmas and Easter. The business needs to identify these users and to satisfy them appropriately.
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.
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 usage rate of different customers is another criterion commonly used. For any given service or product, the rate usage is variable among different consumers. The main groups that can be considered are the heavy, the moderate and the light users. Usage rate can also be regarded in terms of quantity. This refers to the amount of goods that are bought at any given time.
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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