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Sunday, January 26, 2014

The Basics Regarding Behavioral Segmentation

By Judy Sullivan


As a marketer, it is very unlikely that you will encounter a set of two consumers who have exactly the same tastes and preferences. That is expected. As human beings, many differences exist among others. From our genetic make-up, our cultural background, our levels of education, life experiences and so on. One will therefore not be surprised to when consumers demand different things from a product or service. Behavioral segmentation is the subdividing of a market based on these differences.

There are a number of differences between this form of marketing and the traditional marketing styles. Traditionally marketing was done by targeting a large heterogeneous group of customers. The marketer typically sent out promotional message to the group without considering any stratification. This type has the disadvantage of failing to address the concerns of different consumers adequately. It therefore results in returns that are much lower returns.

There are many types of behaviors that are used in subdividing the market. One of the behaviors that are used is product loyalty. There is a variation in the degree of loyalty that exists for different products and services among customers. The business can conduct research to establish the type of customers that are most loyal to a certain product and the reasons that contribute this kind of loyalty. Those with a low level of loyalty should also be identified and similarly, the reasons behind this should be identified.

The other way to achieve the subdivision is to use the benefits sought as the guideline. Even for the same product, consumers do not always look for the same things. It is important to be aware of the different reasons that will make consumers demand for your goods. If the different segments are large enough then it may be necessary to modify the product in a manner that helps each consumer maximize on the benefits.

A number of goods are only bought occasionally. Their demand is noted to be unusually high during specific periods of the year when marking particular occasions or festivities. Christians buy lots of religious goods during Christmas and Easter. For this reason, they form a very important segment that needs to be recognized. If one is not aware of the existence of this segment of customers then they will not adequately meet the demand.

Usage rate refers to the number of times that a client uses a given product within a specified period of time. The rate is a reflection of the quantity demanded which means that people who use a given product more frequently also have high demand for the same. In this regard, clients can be divided into light, moderate and heavy users. By so doing, it will be possible to address the needs of each group that has been created.

Buyer readiness is the willingness of a buyer to use a service or good. While some buyers simply like a product others are willing to pay for it. The levels of willingness are divided into 6 that represent increasing levels of willingness to spend on the product. The first stage is awareness of product existence and the last stage is the purchase stage.

Apart from behavioral segmentation, there many other ways of subdividing markets. The commonly used ones include the use of geographic, demographic and psychographic characteristics. The most important thing is to ensure that the segment created has members that share the same concerns.




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