Page 55 - Marketing the Basics 2nd

segMentation, targeting and positioning 47
BEHAVIOURAL SEGMENTATION
In behavioural segmentation, the marketer divides buyers into groups based on the benefit sought, their loyalty to the brand, their readiness to buy, the product’s usage rate, the product’s end use and the customer’s attitude toward the product.
BenefiTs sougHT
As we have mentioned earlier, a product is a complex bundle of benefits. Creating segments according to the benefits they receive will allow the firm to better understand buyer motivation. Knowing what motivates buyers aids the marketer in crafting their promotional campaign.
BRanD LoyaLTy
Dividing a market according to brand loyalty reveals the response rates of the marketing-mix. Typically, buyers are divided into the following four categories:
1 Platinum: Customers who always buy the brand
2 Gold: Customers who will buy the brand most of the time,
occasionally choose another
3 Iron: Customers who are indifferent to all brands in the
category
4 Lead: Customers who have demonstrable loyalty to the
brand.
Marketers should concentrate their marketing efforts on promoting customers from iron to gold, gold to platinum and ensuring their platinum customers never flee. Those who are in the lead category should be ignored because they will never demonstrate loyalty to the brand irrespective of the marketing-mix.
ReaDiness To Buy
This process entails dividing people according to which stage of the buying process they reside within. The buying process