Behavioral segmentation in marketing

Welcome to our lecture on behavioural segmentation in marketing. While traditional segmentation focuses on demographics or geography—such as age, location, or gender—behavioural segmentation divides a market based on observed consumer actions and decision-making processes. This recognises that people with similar demographics may actually behave differently as consumers. The focus shifts from who customers are to how they act, what and when they buy, and why. Exploring behaviours like purchasing habits and brand loyalty helps marketers tailor offerings and communication more effectively, ensuring businesses avoid assumptions based only on surface-level traits. Behavioural segmentation categorises customers based on purchase occasion, user status, usage rate, brand loyalty, and the benefits they seek. For instance, some buy only during holidays, while others are regular buyers. A coffee chain, for example, might distinguish between first-time visitors and daily regulars, offering different incentives for each group. The eighty/twenty rule often applies, with twenty percent of buyers accounting for eighty percent of sales. Grouping customers by actions and preferences allows companies to allocate resources more efficiently, design targeted promotions, and build lasting customer relationships. Let’s explore real-world applications of behavioural segmentation. In retail, brands like IKEA use sensory marketing and store atmospherics to influence shopper behaviour, encouraging longer visits,