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Behavioural Segmentation of Your Targeted Market
What Is Behavioural Segmentation?
Do you ever wonder why your customers act or behave a specific way when it comes to buying or consumption of your product? Understanding consumer behaviour and segmenting your market on those characteristics can help you create more dominating marketing programs.
Behavioural segmentation is the complete opposite of mass marketing. In mass marketing there is no differentiation of the market. Packaging, pricing, promotion are all based on a uniform marketing plan that ignores the consumer’s relationship with the product.
Behavioural segmentation divides the market by the way the consumer responds to, uses, or know of a product. It takes into consideration how the market responds to price and promotion and studies how the consumer organizes their life. This method of segmentation considers a consumers opinions, interests and hobbies and studies what consumers actually do.
Which Category Do Your Customers Fall Under?
Behavioural segmentation is based on how your target market acts or behaves towards a product. Companies can segment their market and create custom, tailored marketing programs for each segment based on four main categories of behavioural segmentation.
- Buying Occasion: Used to help boost response rates, occasion-based marketing is a category of behavioural segmentation because people are more receptive to buy something related to an occasion. Finding or creating that reason is classified as occasion buying. A wine company, for example, might build a campaign around celebrating a promotion or an engagement.
- Benefits Sought: Answers the question “what’s in it for me?” Every consumer has a need. Understanding that need and marketing how your product can satisfy that need creates a segment. The toothpaste industry is full or companies who target their market based on behavioural segmentation and benefits sought. Thanks to our unique and oddly vast oral hygiene problems there is a product that can satisfy virtually every need.
- Loyalty: Classified as having high, medium, or low brand or product loyalty, marketers try to earn repeat customers who are loyal to their offering. Once brand loyalty status has been achieved, marketing strategies change from acquisition focused to retention focused. Understanding the characteristics that made the consumer loyal is important so that companies can look for other consumers with similar characteristics in the general market.
- Usage Rate: Differentiates the consumer based on how frequently they use the product. Typically they are classified as heavy users, medium users, light users and nonusers. Heavy users are on the border of becoming loyal and should be treated differently than other types of users. Medium users consume the product at a reasonable and expected rate. Light users can usually be persuaded to try your product more frequently by offering them incentives and promotions. Nonusers are the group of the population that is not currently using your product or service. Knowing behaviours and buying patterns of your users are particularly interesting for companies because they can take that knowledge and use it to develop a plan targeting that segment.
In today’s complex world everything is customizable. Businesses need to also differentiate their marketing mix for consumers based on their unique needs, preferences, and behavioural characteristics.
Get Started Segmenting Your Market; LocalDirective Can Help
Just about every company could benefit from specialized targeting using demographic, psychographic, behavioural or geographic methods. At LocalDirective, our goal is to deliver maximum volume of business from the highest profit-producing segment. Thus, your national advertising may have some local or regional components to achieve the highest ROI.
Unlike other digital marketing agencies that have one specialty or one point of view, LocalDirective has a rich and widely dimensional body of expertise in marketing strategy development, marketing plan development, online marketing and advertising and website development. You need marketing segmentation to be effective, so why not choose a digital agency that has the in-house experience to deliver what you need? Make Contact. Either complete the Brief Information Contact Form or give us a call, toll-free at 1.866.925.9524 today. Let’s get started!