consumer behaviour and market types

Behavioural segmentation

shopping behaviours that are used to group consumers with others according to similar patterns

Behavioural segmentation group examples

* spending
* consumption
* rate of usage
* loyalty status
* desired benifits

Behavioural segmentation - spending

* an enterprise can analyse customer spending patterns to identify shopping trends and preferences
* this can inform an enterprise of the popularity of certain products
* spending habbits can be affected by the economy, cost of living, inflation and interest rates

behavioural segmentation - consumption

* consumption is how much of something a customer is buying or using
* consumption is influenced by the time of year, holidays, weather and promotions
* usage rates can help with advertising and stock ordering

behavioural segmentation - loyalty status and desired benifits

* brand loyalty focuses on repeat customers, their needs and their shopping patterns. by doing this an enterprise can ensure it has the correct amount of stock

B2B

a business to business market, where businesses sell products or services to other businesses

B2C

a business to customer/consumer market, where a business primarily sells products or services to consumers

segmentation definition

the process of dividing a B2B or B2C market into manageable groups that share similar characteristics

advantages of segmentation

* improves the efficiency in marketing spend and reach
* makes choosing suitable marketing and media easier
* means that very specific messages and offers can be made
* can provide a competitive advantage over enterprises who do not use segmentation

Markets

* enterprises either operate in the mass market, or within a small niche market
* they may sell their goods or services to other enterprises, directly to customers, or a combination of both

Business to business (B2B)

* A B2B enterprise sells to other enterprises
* for example, a farm will sell wheat to a mill
* the mill may then sell its flour on to a bakery
* purchases are often made in bulk in B2B

business to consumer (B2C)

* a B2C enterprise sells directly to the consumer
* for example, a bakery will sell loves of bread to walk-in customers
* they will often add value to the product, for example, baking, slicing or packaging