Behavioral Segmentation: A Major Chapter in the Market Segmentation Story

Segmenting a market means developing the most vivid view possible of a particular customer opportunity. When “opportunity” enters the conversation with “marketing,” three must-have requirements emerge. It must: Represent enough buying power to make analysis worthwhile Be accessible Have a fighting chance to be competitive If any of these are missing, move on. If they’re evident, continue the “vivid picture” process.  Most businesses entering the market segmentation arena move straight into demographic and geographic segmentation analysis. Those generally are the easiest to come to grips with. Psychographic segmentation and a behavioral segmentation definition are more removed and less understood. So why are they necessary? Let’s put it this way: If you can view an interesting object from all angles – the sides, underneath and above – the more chance you have to understand everything about it.  More than that, if you want to make contact, it gives you a firm idea of the direction to take (i.e., sideways, ground up, or an aerial approach). Behavioral segmentation is just that. It gives you a creatively unique view of the market and, at the same time, provides new ways of entering it to be more competitive and thus make more money. What is Behavioral Segmentation? In a way, it explains itself. It’s grouping customers identified by the way they behave in the marketplace – a kind of user segmentation if you will. It tells one what buying patterns to expect of customers as they interact with your company’s brand. It takes us … Continue reading Behavioral Segmentation: A Major Chapter in the Market Segmentation Story