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 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.
Another significant customer behavior that may be used in segmentation is product loyalty. In many industries there are customers who remain loyal to given brands of products for many years and this is very important in the sustenance of the products. Marketers need to identify who these customers are and seek ways on which they can maintain the loyalty. Rewarding loyal customers would be a good way of reinforcing the loyalty as well as encouraging the customers that are not as loyal to use the products more often.
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 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 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.
Another significant customer behavior that may be used in segmentation is product loyalty. In many industries there are customers who remain loyal to given brands of products for many years and this is very important in the sustenance of the products. Marketers need to identify who these customers are and seek ways on which they can maintain the loyalty. Rewarding loyal customers would be a good way of reinforcing the loyalty as well as encouraging the customers that are not as loyal to use the products more often.
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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