People Innovation Excellence

WHY DOES BEHAVIOURAL SEGMENTATION IS IMPORTANT TO SET UP MARKETING STRATEGY, NOWADAYS

By : Dimas Candrabhaskara, SE (Student of International Marketing)

In today’s world of business, many companies strive to win the various and dynamic markets by designing and producing products to consumers to serve their needs and wants in the same way. Due to consumers’ uniqueness based on different backgrounds and different needs and wants, consumers have their own habits in terms of buying experience and fulfilling their needs. Therefore, companies aim to serve only several or one specific market so that they won’t waste their time and budget in doing mass marketing. To be able to serve one specific market, thus companies must conduct segment marketing where the consumers are divided into several criteria.

In the manufacturing industry, specifically the tire products where many brands are served in the market, consumers have a lot of considerations to choose one brand from another. With the increasing demand of tires followed by the increase of manufactured cars globally, the tire industry relentlessly innovates to suit the needs and wants of car users in different markets. Therefore, divided segments are needed to be analyzed and later companies can have a clearer view of their segments to be targeted and suitably perfect for their products.

According to Philip Kotler (2006), STP is a significant marketing process because it can help company managers to identify highly potential customers that are suitable for their products. By using the STP strategy, companies can keep on producing products depending on consumer wants, as well as to increase consumer’s satisfaction. In the marketing strategy, market segmentation is the practice of dividing the market into certain orders to meet the needs of different customers. These differences are very useful to fulfill the functions of various marketing strategy and they are usually used in facing recently surfaced market segments.

One of the most important reason to divide market into several groups is because people has different preferences and this leads to high profit than approaching different groups with the same strategy. The success of segmentation relies on the segment’s size and the cost associated with the different strategy used (Peter & Olson : 2010).

Basically, if segments can be identified correctly, then marketers will have no trouble at all among their competitors to place the chosen segment needs. The company will create a special product for consumers that meet the criteria of the segment in order to establish simple communication with them.

According to Blythe (2012), segmentation has a purpose to concentrate its effort in satisfying one particular segment or group with the same needs rather than trying to satisfying everybody and ended up satisfying nobody.

Throughout several books and scientific journals regarding the subject “Segmentation”, researcher has found similarities and some other distinctive results on the matter at hand, which is behavioural segmentation. The important reason of using the behavioural segmentation for any company is that this method gives marketers a very sharp insight on consumer’s behavior. Behavioural segmentation will definitely give the company a broad description of the consumers as well as a definition for who they are. Since the demographic segmentation is no longer reliable for the company’s need to have a clearer description of the consumers, behavioural segmentation serves a better purpose for the company’s marketing team to reach their marketing goals.


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