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1. Using Behavioral Segmentation To Boost Returns

2. 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.

3. There are several differences that exist between the
traditional marketing strategies and the segmentation
strategy. For instance, in the traditional approach, mass
marketing was practiced. The marketer typically sent out
a message to a large pool of potential customers in the
hope of reaching out to buyers of products or services.
In segmentation, the customer pool is stratified and
each is treated differently from the other.

4. 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.

5. Another way of dividing the market is to determine the
kind of benefits that are sought by various consumer
groups as they demand for goods. It should not be
assumed that all consumers buy products for the same
reason. Many products have multiple uses and as such
demand is likely to be influenced by different factors.
The marketer will need to establish which benefits are
demanded by a given group of customers and the
reasons driving the demand.

6. 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.

7. 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.

8. 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.

9. 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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