Segmentation by product

economic-dictionary

Product targeting is a type of targeting commonly used in marketing. It is based on the usefulness of the product to divide it into consumer groups that have homogeneous characteristics.

It is important to add that it is a type of segmentation that turns out to be very effective. For that reason it is used very frequently. Segmentation is carried out taking as a reference the use that the consumer or customer makes of the product.

The most common in this form of segmentation is to take into account the frequency of use, the rate or amount of use and brand loyalty. For this reason, it must not be forgotten that all products are aimed at satisfying the needs of consumers. But, this segmentation is carried out with the aim of meeting the consumer's need in a specific way.

What variables are used to segment?

1. Frequency of use or purchase

Naturally, the frequency of use or purchase allows us to determine how often they buy and consume our product. This variable can be obtained by making an average of the purchases made by our consumers or clients.

Among these groups we can find:

to. Regular user

Undoubtedly, the regular user is the person who frequently and repeatedly buys and uses the goods and services that the company offers to the market. Customers who belong to this segment buy frequently because they are identified with the values ​​of the company or because they are satisfied with the quality of the products. It could also be people who buy it because they have no other product that is available to them.

For example, a person who stops by a coffee shop every day before going to work to order a cup of coffee. One user could buy it because he likes the coffee he finds in that coffee shop and another because it is the only coffee shop he finds on the way to work.

b. No user

For their part, non-users are all the people who do not use our product. In the same way, it could be because you do not like our product or because it is not available where you need it. If the product does not appeal to them, the company must obtain information to know how to improve or innovate the product.

Now, if you like it, but you don't find it available where you need it, you will need to improve your distribution system.

c. Ex-users

Former users are the people who used and bought our product, but then stopped buying it. The reasons could be that they consider that our product is of poor quality, or because they have received bad service, or because they found a better product in the competition. This is a group to which the company must pay special attention.

d. Potential user

Whereas, potential users are the group of people who currently do not use our product. The reason could be because they do not know you, because they are not of the required age or because of your marital status. This means that in the future they could be our consumers, so they should also be taken into account in the segmentation.

and. First time user

Finally, we find first-time users. This segment includes people who are using our product for the first time.It is a determining group, since, depending on the experience they have with the product and the service, it will depend on whether or not they repeat the purchase.

2. Amount of use

In fact, the amount of use is another aspect that can be used to segment the market. The classification is made according to the amount of product that consumers or customers use in a given period of time.

The classification is as follows:

to. Large users

First of all, we find the large users and they are those who buy in large quantities. It can also be the ones with the highest purchase rate in the market. Usually it is a small number of consumers, but they buy in large volumes.

b. Average Users

Second, there are the average users. This group includes consumers who determine the average consumption of the product that the company offers. They represent the average consumption of this product for the company. In addition, it is the largest group.

c. Small users

Third, we find the small users. These are the users who buy and consume the product in small quantities. Either because their purchasing power is low or because their personal habits mean that they do not consume much of that product.

3. For brand loyalty

When the segmentation is made by the brand loyalty of the product, we refer to the loyalty that the consumer manifests towards certain products. The groups that can be established in relation to brand loyalty are:

to. Loyal users

Indeed, loyal users are the users who only and exclusively use our products. They prefer our brand, they do not use the products of competing brands. These users have a positive image of the brand and communicate it among their contact groups. Finding loyal customer groups is the best thing that can happen to a business.

b. Users with shared loyalty

In the same way, we find the group of shared loyalty. This group is made up of users who use the same product in the market, but buy our brand and other competing brands. It would be the case of people who like black carbonated waters. But they don't care if it's Coca Cola or Pepsi. For that reason, they are very sensitive to promotional stimuli or price changes.

c. User without preference

Finally, there are users without preference who do not show any predilection for a certain brand. For that reason, they are pending price changes, promotional events and new benefits in products and services in general.

Finally, we can say that segmentation by product use can help any company to better identify its customer and consumer groups. That way, you can better target each user group and better meet their needs. It can also help companies better tailor their pricing, communication, and distribution strategies for each identified segment.

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