Psychographic and behavior response segmentation

Psychographic Segmentation Market Segmentation on the basis of the activities , interests, and opinions (lifestyles) of consumers Such information is advantageous to marketers because it tells them not only who buys, but why they buy Combined with demographic and geographic information, this segment helps complete a more complete portrait of the target market Variable in psychographics include needs, motivation, attitudes, and perception (Consumer Behavior: Psychographics on Website) When companies target pychographically, they present products in line with the lifestyle of the personality of the target market

Example: Axe Unilever created its first male deodorant line aimed at young men in 1983, but it was not marketed in North America until 2002 The primary target of the deodorant was men from 18-25 Using a study in the attitudes (psychographics) in men in this age range Axe developed an ad campaign based on men who focus on sex and partying While at first glance this may seem to have nothing to with deodorant, Unilever argued that it is relevant for men “competing in the mating game” They labeled this kind of information “brain food”

Behavior Response Segmentation Behavior Response Segmentation involves dividing buyers into groups according to their occasions for using a product, the frequency with which they use it, and their degree of brand loyalty It is used in conjunction with other segmentation variables

Behavior Response Segmentation: Occasions for Use In order to increase the consumption of the product, marketers using the occasion-for- use segmentation strategy show how the product can be used on various occasions For example, advertisers show how a product such as eggs, breakfast cereals, and orange juice can be consumed outside their usual mealtimes Other products are associated with special occasions and promoted heavily at these times For example, flowers and chocolate sales increase significantly during Valentines Day, Mothers Day, Easter, and Christmas Branded advertising campaigns are more visible during these special time periods

Behavior Response Segmentation: Benefits Sought Several products are targeted towards the benefits sought by the customer Examples Recently, there has been a market war between Colgate and Sensodyne to target the people who have sensitive teeth. Similarly, there are other toothpastes which are targeted towards whitening of teeth. Hair shampoos are targeted towards split ends, anti dandruff or others. The above examples explain what is the role of benefits in behavioral segmentation. Thus a marketer can divide a population based on the benefits they seek within a product.

Behavior Response Segmentation: Usage Rates In residential or commercial segment, the usage can be demonstrated in the form of heavy usage, moderate usage or lesser usage. Example: Beauty parlors or personal care. There are some customers who use a lot of personal care products whereas others do not use personal care products much. Thus depending on their usage the customers can be targeted. There are multiple sizes available of any beauty care item. Heavy usage customers can buy the large containers and medium or small users can buy the smaller container. Another example of usage rate segmentations can be seen in the electronics as well as the FMCG industry in industrial buying Example: Fast Moving Consumer Goods (FMCG) and Electronics Works on the basis of a channel with dealers and distributors. In these segments, the maximum discount goes to the one who buys the maximum whereas others get lesser profits as they also get lesser discounts. Any product which is not targeted towards the masses generally uses behavioral segmentation It is also an excellent form of segmentation for products which are niche in nature and are targeted towards the wants and demands of customers

Behavior Response Segmentation: Loyalty Response There are two ways to grow a business First is to acquire new customers and second is to retain your existing customers. The more loyal your customer is to you, the more your customer base will increase. That’s one more kind of behavior which marketers target. The strategies for brand loyal customers is very different from that used for acquiring new customers. Example: Hospitality Airlines, hotels, restaurants and others give their best service to provide the most excellent experience possible such that they can retain their customer Service is a major differentiator in hospitality sector. The hospitality sector is the one with the best loyalty programs ever, thus the loyalty of the customer can also be used for behavioral segmentation.