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.
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.
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.
There are many goods and services that are subject to occasional buying. Buying goods at some times of the year and not the other may pose a great challenge to supply and may actually result in demand and supply mismatch. Commonly, gifts with a religious connotation are usually sold around the time of these religious festivities. Such is the case for Christian goods during Easter and Christmas. The supplier needs to understand the number of customers that are expected during such a period of time so that they can increase the quantity of goods supplied.
The rate of usage is proportional to the demand. Clients who demand more of a product are more likely to be heavier users than those who demand less. One can use this attribute to divide their pool of clients into the heavy, moderate and light users depending on the frequency of use of a certain product. Apart from the frequency of use, the quantity used should also be factored in.
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.
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.
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.
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.
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.
There are many goods and services that are subject to occasional buying. Buying goods at some times of the year and not the other may pose a great challenge to supply and may actually result in demand and supply mismatch. Commonly, gifts with a religious connotation are usually sold around the time of these religious festivities. Such is the case for Christian goods during Easter and Christmas. The supplier needs to understand the number of customers that are expected during such a period of time so that they can increase the quantity of goods supplied.
The rate of usage is proportional to the demand. Clients who demand more of a product are more likely to be heavier users than those who demand less. One can use this attribute to divide their pool of clients into the heavy, moderate and light users depending on the frequency of use of a certain product. Apart from the frequency of use, the quantity used should also be factored in.
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.
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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