Kamis, 16 Januari 2014

Using Behavioral Segmentation To Boost Returns

By Judy Sullivan


Consumers have a lot of similarities among them. The differences are also many and significant. Having differences of opinion, preferences and tastes is part of human nature. We have differences in our genetic make-up, our cultural practices, religious beliefs and so on. In the same way, we view services and products that have been placed up for sale. In behavioral segmentation, the marketer divides their pool of customers into smaller groups based on their differences and similarities.

The traditional way of marketing is rather straightforward but has poor returns. The marketing involves targeting the entire pool of consumers regardless of any differences that exist between them. The marketer sends out a message to all the potential consumers in the hope of reaching out to willing buyers. This is different from the segmentation approach where different groups of customers are treated differently depending on their specific demands.

The behaviors that can be used as the basis for segmenting are numerous. They will largely depend on your judgment. Any client behavior that you consider significant enough to influence demand for your goods can be used. Product loyalty is widely variable among clients for many goods and services. It is possible to classify your clients in several groups depending on their levels of loyalty. By so doing, you will get the opportunity to determine the factors that enhance or discourage the use of your products.

Using benefits sought is also a common way of segmenting. It is important for the producer and the marketer to understand that consumers demand goods and services for different reasons sometimes even when the use of that product appears straightforward. It is the responsibility of the marketer to establish the driving forces behind the demand of their goods. If this is properly understood, then modifications can be made to make sure that benefits are maximized.

Occasional buying is the buying of goods in high quantities during certain occasions. For example, Christians tend to buy more religious based gifts during the Easter and Christmas festivities. Chocolates are reported to be on high demanded during festivals. By knowing what products are demanded on given occasions and by which groups of customers, the suppliers will position themselves to ensure that the demanded products are made available in timely fashion.

Usage rate is yet another criterion commonly used segmenting markets. The idea here is to create consumer groups based on how frequently they use the product or service in question. Generally, customers can be divided into three major groups using this criterion: these are the heavy, moderate and light users. Other than the frequency the quantity used by each of them can also be used as an attribute.

Buyer readiness stage may be used in some cases. There are about six stages that can be considered including awareness, knowledge, liking, preference, conviction and purchase. These stages include an increasing level of readiness to buy or use a certain good or service. Awareness denotes that clients know that the product exists in the market and at the purchase stage they spend money to get it.

There are several other options of market subdivision that can be considered besides behavioral segmentation. Demographic, psychographic and geographic characteristics can all be used. The main objective is to make sure that the groups are large enough.




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