Sunday, December 22, 2013

Important Facts Relating To The Use Of Behavioral Segmentation In Marketing

By Harriett Crosby


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.

There is sharp contrast between market segmentation and mass marketing. The latter is the traditional method of advertisement that approached the market as a unit. The disadvantage of doing this is that some customers will not have their needs fully met and this reduces the cells of the business in the end. Segmenting is more customer-centered and rewards the users well.

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.

Brand loyalty varies from one customer to another. The business needs to be aware of this fact. The pool of customers can be divided into groups depending on their level of loyalty. The most loyal group can be rewarded for supporting the business and this will often encourage those that are not so loyal to improve in loyalty. Reasons for and against loyalty should be found out from the various groups of customers and appropriate steps to change the situation undertaken.

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.

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.

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.




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