Question

-what is the relation with consumer behaviour and companies marketing strategy?

- how a company segment its market?

Answer 1

Consumer behavior plays an important role in companies marketing strategy:

• It acts as an input to the company’s marketing strategy to understand customer needs and future demands.
• It helps understand gaps in the market and introduce new products in the market.
• It helps understand company performance and customer perception about the brand and organization.

Market segmentation is a marketing strategy in which a large number of target market is divided into smaller groups of target market with similar needs and then designing strategies to target these smaller target groups.

Below are the three segmentation techniques:

1. Demographic Segmentation: Dividing the target market into smaller groups based on Age, Gender, income etc.
2. Geographic Segmentation: Dividing the target market into smaller groups based on geography. Example cold countries and hot countries
3. Behavioral Segmentation: Dividing the target market into smaller groups based on behavior, usage and buying patterns.