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.
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 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.
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 several other criteria that are available today besides behavioral segmentation. These include demographic, psychographic and geographic segmentation. Demographic categories are centered on factors such as age, gender, income and so on. Geographic subdivision is based on the different geographical locations of the potential customers. Psychographic segmentation is uses customer attitudes as the basis for categorization.
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.
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 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.
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 several other criteria that are available today besides behavioral segmentation. These include demographic, psychographic and geographic segmentation. Demographic categories are centered on factors such as age, gender, income and so on. Geographic subdivision is based on the different geographical locations of the potential customers. Psychographic segmentation is uses customer attitudes as the basis for categorization.
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