Student Corner - 262

BEHAVIOURAL SEGMENTATION

 We have been looking into the marketing benefits of segmentation. No business enterprise can afford to neglect segmentation as it helps reduce significantly the wastage of company resources particularly financial resources. Of   course, there are some types of segmentation with specific appeal to the prospective customers of that segment.

We were discussing behavioural segmentation.Let us continue for some more information. Behaviour fundamentally refers to one’s interactions with people ; that is , what kind of relationship you have towards people as well as towards things.  Let me explain with some daily examples. With people, there can be two major interactions; that is, your like and dislike; for some reason or other, you like somebody or dislike somebody. Your interactions take their origin in your like or dislike.For the same mistake, so to say, you react differently; for some one, you take it lightly because you like him and for some other you react rather harshly because you do not so much like him. Interactions are complex matters and here they are too simplified for convenience. Now let us take some objects or things. Say soap , something which almost all use it.  Some are ready to spend more for a soap that promises you health promotion; and, they buy the soap that is said to be healthy in use; some are more worried about cost; they would not be ready to spend more for a soap that is considered healthy to use it. Some buy a soap that his parents have been using . We can say your relationship , so to say with the thing is based on either Health, on Monetary consideration or domestic influence. Now, as a business man producing a soap, you have three kinds of people; health-oriented; price-oriented; Domestic practice oriented. Whom do you want to sell your product and your choice is what is commonly called your target; you focus on your target market. All your efforts in marketing are directed to attract and retain, as much as possible, your target with you. This is what is called Behaviourat marketing segmentation. You analyse, of course, experts are available for such tasks; you analyse your target and product according to the needs of the target.

Next comes positioning your product. You should have an almost exact knowledge of the marketing scenario; that is, the existing products and their market share. This will give you fairly good idea about your rivals in the market.  One who has the highest market share cannot be your rival.  Depending on the financial strength of your enterprise, -- how much your investment is likely to be including your banks’ support , all such details- you have to decide upon your rivals ; that is, one who  is just above you and another just below you . To be precise,  there is a brand whose market share is about 30 percent and you aim for a market share just above this , that is,  about 32 percent , and there is another brand with 28 percent market share , he is just below you. You have to study the marketing dynamics of both the parties. The one below you , that is, in market share closely studies you to overtake you  and the one above you ,you have to study him and his marketing dynamics to overtake him or at least to move to his level, to begin with. Competition among the same kind of players must be closely studied to move ahead or at least to stay where you are.

We will see some more of it in our next and then move on to next topic.