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BEHAVIORAL SEGMENTATION

In behavioral segmentation, buyers are divided into groups on the basis of their knowledge of, attitude toward, use of, or response to a product. Many

marketers believe that behavioral variables-occasions, benefits, user status, usage rate, loyalty status, buyer-readiness stage, and attitude²are the

best starting points for constructing market segments.

Occasions

Buyers can be distinguished according to the occasions when they develop a need, purchase a product, or

use a product. Occasions segmentation can help firms expand product usage. For example in Pakistan tea is

usually consumed at breakfast. A company can consider occasions of critical life events or transitions-

marriage, childbirth, illness, relocation, career change²as giving rise to new needs.

Benefits

Buyers can be classified according to the benefits they seek, people vary considerably in the benefits they

seek from the same product.

1.Road Warriors: premium products and quality service. (16%)

2.Generation F: fast fuel, fast service, and fast food. (27%)

3.True Blues: branded products and reliable service. (16%)

4.Home bodies: convenience. (21%)

5.Price Shoppers: Low price. (20%)

User StatusMarkets can be segmented into nonuser, ex-users, potential users, first time users, and regular users of a

product. Market-share leaders tend to focus on at tracting potential users because they have the most to gain.

Smaller firms focus on trying to attract current users away from the market leader.

Usage RateMarkets can be segmented into light, medium, and heavy product users. Heavy users are often a small

percentage of the market but account for high percentage of total consumption.

Loyalty StatusConsumers have varying degrees of loyalty to specific brands, stores, and companies. Buyers can be

divided into four groups according to brand loyalty status:

1.Hard-core loyals: Consumers who are buy one brand all the time.

2.Split loyals: Consumers who are loyal to two or three brands.

3.Shifting loyals: Consumers who shift from one brand to another.

4.Switchers: Consumers who show no loyalty to any brand.



Buyer-readiness stage

A market consists of people in different stages of readiness to buy a product. Some are unaware of the product, some are aware,

some are informed, some are interested, some desire the product, and some intend to buy. The relative numbers make a big

difference in designing the marketing program.

Attitude

Five attitude groups can be found in a market: enthusiastic, positive, indifferent, negative, and hostile.

Door-to-door workers in political campaign use the voter¶s attitude to determine how much time to

spend with that voter. They thank to enthusiastic voters and remind them to vote; they reinforce those

who are positively disposed; they try to win the votes of indifferent voters; they spend no time trying to

change the attitudes of negative and hostile voters.

CONCLUSION

The tools for identifying market segments and selecting target markets all over the world is same and these

tools are also implemented in Pakistan. Companies make different segments for their own convenience and

target only those markets that in return gives the company most profit and that company can easily serve.

Identifying market segments and selecting target markets enable the company to serve their customer in a

better way. With marketers increasingly adopting more and more refined market segmentation schemes²

fueled by internet and other customization efforts²some critics claim that massmarketing is dead .

80-20 rule

A rule of thumb that states that 80% of outcomes can be attributed to 20% of the causes for a given event. In

business, the 80-20 rule is used to help managers identify problems and determine which operating factors are mostimportant and should receive the most attention based on an efficient use of resources. Resources should be

allocated to addressing the input factors have the most effect on a company's final results.

Also known as the "Pareto principle", the "principle of factor sparsity" and the "law of the vital few."

Investopedia Says:

The 80-20 rule was developed by Joseph Juran, a 20th century figure in the study of management techniques and

principles. The 80-20 rule has been applied to a number of different facets of business.

An example of the 80-20 rule in economics would be that 80% of a country's wealth is controlled by 20% of the

population, although this can be explained by the Gini index.

Usage rate



Usage rate segmentation involves 'dividing a market by the amount of product bought or consumed'

(Summers et al. 2009, p. 142).

Usage rate can be irregular (light), medium, or heavy, while user status for a product can range from

regular user, first-time user, potential user, former-user, or non-user. Under the 80/20 principle,

marketers prefer to focus more of their attention on heavy and regular users, however they are also

interested in attracting non-users. Consider the marketing of beer. The focus of advertising for full

strength beer is on heavy drinkers. However newer products, for example light beers and premium beers

are targeted at non-traditional markets, such as younger people and females.

Loyalty status

When assessing loyalty, consumers can be classified as completely loyal, somewhat loyal, or not

loyal. Completely loyal consumers are those that would not consider buying another brand or visiting a

different outlet. I tend to be more loyal for service products, such as my hairdresser and my doctor, while

I tend to be a brand switcher when it comes to most food products. Some consumers may be loyal to

more than one brand. For example, I like both Arnotts and Nabisco biscuits and tend to buy whatever is

on special for those two brands. Other consumers may show no brand loyalty at all and may simply buy

whatever brands are on special.

Buyer-readiness stage

Buyer readiness stages range from being unaware that the product or service exists to actualpurchase. The six buyer readiness stages are:

Stage Issues

Awareness Is the consumer aware that the product exists? Do they know about your companyand your brand?

Knowledge What does the consumer need to know about the product? Do they know whatbenefits the product provides? Do they know what attributes/features the producthas? Do they know how much the product costs and where to buy it?

Liking Does the consumer like the product? What is their attitude towards the product? Dothey feel that it would provide useful benefits?

Preference Does the consumer prefer your brand? Do they believe that your brand provides theright mix of attributes to deliver desired benefits?

Conviction Is the consumer convinced that they should buy your brand? Are they convinced thatyour brand would meet their needs and is value for money?

Purchase Have they moved from purchase intention to actually purchasing the product?

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