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.

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.

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 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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