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The Basic Facts On Behavioral Segmentation In Marketing The Basic Facts On Behavioral Segmentation In Marketing January 14 Daniel Amartey FLeicester City Jersey , 2014 | Author: Harriett Crosby | Posted in Business
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 use of market segmentation as a general marketing tool represents a major shift in doing business. The traditional way of reaching out to consumer was mainly through mass marketing. This method was very ineffective. In the mass marketing approach the entire pool of consumers was regarded as a single homogenous pool of customers. The message is sent out to the whole pool in the hope that a large number of potential customers will be reached.

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.

Even for the same product, there is some form of difference in the reasons that lead to usage of the given products. Some customers will choose to use a product for a given reason and others will use for an entirely different reason. The producer needs to be aware of the existence of the various groups and to modify their products in a manner that all the concerned groups will be satisfied.

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 Christian Fuchs FLeicester City Jersey , 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 several other criteria that are available today besides behavioral segmentation. These include demographic, psychographic and geographic segmentation. Demographic categories are centered on factors such as age, gender Blank FLeicester City Jersey , income and so on. Geographic subdivision is based on the different geographical locations of the potential customers. Psychographic segmentation is uses customer attitudes as the basis for categorization.

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