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 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 not uncommon for different customers to demand for different benefits from the same products. In the event that a business is dealing with products that have multiple benefits, there is need to know the various groups interested in each of the benefits. By so doing, it will be possible to modify the products so that each of these benefits are maximized and all the customers are happy.
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.
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.
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 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 not uncommon for different customers to demand for different benefits from the same products. In the event that a business is dealing with products that have multiple benefits, there is need to know the various groups interested in each of the benefits. By so doing, it will be possible to modify the products so that each of these benefits are maximized and all the customers are happy.
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.
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.
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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