2. Behavioral segmentation is a process of grouping
customers according to the way they respond to a
product that is in the market. This method of division is
now popular because of improved technology. Today
many firms have software that helps in gathering
information about customer response to a product with
ease and within a short period of time.
3. There are different stages under this model with the first
stage being product awareness. Companies need to
create awareness about a new product that is being
launched among customers. Raising awareness does not
apply to new products only. This stage also applies to
well-known goods or companies that need to enter new
market segments.
4. This market division method is helpful to producers
because they are capable of identifying the benefits that
consumers get from consumption of products. This
enables them to know what input should be included
during the production process. It also helps firms in
identifying what needs to be improved for demand to be
high.
5. This method divides consumer into different groups
according to their response to changes in price,
promotions among others. Other strategies can also be
used to divide customers into groups. The business
strategies used by researchers in this process are as
explained below.
6. The information collected about homogeneous groups
of customers is used at a future date when the company
wants to launch a new product within the market. By
predicting customer response to the new product basing
on their behavior towards other products, producers are
able to know what inputs should be included. It also
helps in determining the technology that should be used
in the production of the new product.
7. Due to high levels of competition in different industries,
potential customers may end up liking other products in
the market that are similar to those produced your firm.
Your company should carry out promotions that will
make consumers to prefer their products over other
competitors. It should also carry out research about the
strength and weaknesses of similar goods. The
important features like quality and value of the goods
produced by the said company should be established.
8. Through this style companies can come up with different
marketing strategies that will enable them attract more
customers. By grouping customers according to their
response to products, the company will be able to find
out whether customers are devoted to their brand. With
this information strategies are created and put into
place especially during promotion to enable the firms
attract, convict or persuade customers to purchase
goods or services.
9. The final strategy of behavioral segmentation is product
purchasing. Customers may fail to purchase a product
even after the conviction stage due to various reasons.
For example they may buy a product because of
financial issues or low levels of income as compared to
the standard of living of a country or society in which
they stay. Firms should offer discounts or sell their
product through sales representatives in order to
influence customers to purchase goods.
