About the Author Jerry W. Hardcore loyals stick to one brand; while soft core loyals will sometimes buy another brand, and the switchers have no specific brand. If the goal, however, is to develop the strategic positioning and advertising messages for a new smartphone or a new car, then occasion-based segmentation would not be applicable. Many restaurant chains focus on a limited geographic area to achieve concentration of force. On the left, a single variable age is used. Their main characteristic is that they need easy one-click access to information and products as well as easy and quickly available service regarding products. This ensures you have the right card to express yourself perfectly.
Under this approach the target market is segmented based on features such as company size, industry sector or location usage rate, purchase frequency, number of years in business, ownership factors and buying situation. Occasion-Based Segmentation People tend to behave differently, and think differently, at different times or occasions. Day out shoppers enjoy spending time in the store and expect the store to keep new products and come out with promotional offers when they visit the store. You are only limited by your marketing imagination. Each benefit group had special demographic, behavioral, and psychographic characteristics. These are targeted by companies making cakes or gift items. Income Income segmentation has long been used by the marketers of products and services such as automobiles, boats, clothing, cosmetics, financial services, and travel.
Tour and travel companies often give discounts to couples travelling for their anniversary 3. By examining how the four session variables session length, time per page, category concentration, and site familiarity define the different segments, a marketer can identify behavioral patterns that can help in the creation and placement of communications. Indeed, how occasion-based segmentation in the offline world works is the reverse of how occasionalization does. Continuously Score Customers: Similar to traditional customer segmentation, occasional customer segmentation requires scoring and re-scoring of customers, to understand their current needs and behavior. Needs-based, benefit-sought, usage occasion, purchase frequency, customer loyalty, buyer readiness.
There are some differences among brands within PepsiCo portfolio in terms of their nutritional value, pricing, packaging etc. Its ads to teens feature dance-beat music, adventure, and fast-paced cutting from scene to scene; ads to seniors are softer and more sentimental. Although some large companies, such as Coca-Cola or Sony, sell products in as many as 200 countries, most international firms focus on a smaller set. On a more strategic level, it helps you decide which usage occasions are most sensible and lucrative to try to capture. Just the Facts During Just the Facts sessions, users seek specific information on known sites.
Niche marketers presumably understand their niches' needs so well that their customers willingly pay a price premium. These are the more common forms of segmentation. Tactics commonly used range from providing special customer discounts to sending customers communications that reinforce the value proposition of the given service. For example, consumers are generally more prone to make purchases during the holiday season each December than they are throughout the rest of the year. Clearly, a travel agency would benefit by directing its marketing efforts toward heavy users, perhaps using telemarketing and special promotions.
Discount or the appearance of a shop can also be a benefit. Despite the awful performance of search-triggered banner ads on portal sites, a Single Mission consumer may be one of the few users who can provide a good return on a banner advertising investment. Large companies usually target potential users, whereas smaller firms focus on current users. Cultural segmentation enables appropriate communications to be crafted to particular cultural communities. Do It Again sessions typically occur on auction, gaming, and investing sites. Thus, the generational segments and their dates discussed here must be taken as approximations only.
Occasion segmentation: Occasion segmentation recognizes that customers may vary in their usage of a product or brand depending on the situation. Marketers usually prefer to attract a heavy user rather than several light users, and vary their promotional efforts accordingly. This is an applied example of behavioural segmentation, using attitude to product or service as a key descriptor or variable which has been customised for the specific application. Unlike traditional segmentation models, this approach assigns more than one segment to each unique customer, depending on the current circumstances they are under. Offline, marketers must choose a segment and a way to serve it; online, marketers are free to expand their reach to multiple segments, creating distinct offerings as consumers move from occasion to occasion.
For example, dietary habits and preferences vary by occasion: breakfast is different from dinner; eating out on a Friday night is different from grabbing lunch during the week; Thanksgiving dinner is different from most other dinners. We can distinguish heavy, medium or light users. One American study, for example, suggested that almost 60 percent of senior executives had used market segmentation in the past two years. Given that this is the market to be segmented, the market analyst should begin by identifying the size of the potential market. .