Meaning of market behavior

Market behaviour is a broad economic term that refers to the behaviour of consumers,
businesses, or the stock market. It is often analysed and used to generate various marketing
strategies aimed at boosting sales or brand recognition when dealing with businesses and
consumers by analysing their purchasing behaviour. Niche marketing often takes into
account the target demographics, the most likely consumer needs addressed by a product,
and the most effective advertising stimuli to begin a successful campaign strategy.
Understanding stock market behaviour is also important for investors looking to predict
trends, time the market, or choose the best outlets for their investments.

What is an example of marketing behaviour?

One prime example of a behavioral segmentation email marketing strategy
is abandoned cart emails. By targeting customers who have items currently sitting in
their cart for an extended period, your team can send content and emails specific to
those products or categories.

Types of Behavioural Segmentation

There are four types of behavioural segmentation: purchasing behaviour, occasion
purchasing, benefits sought, and loyalty. A customer may be affected by one type of by
all four types, depending on how much behavioural data they offer your brand.

1. Purchasing Behaviour
Segmenting your consumers into groups based on their purchasing behaviour means
taking a look at their shopping habits.
Their frequency and number of purchases, the types of products they buy, and their
buying patterns all affect this segment. Common examples of behavioural segments
based on purchasing habits are:
1. Regular customers: Consumers who purchase a particular product or service
frequently or in large quantities.
2. Occasional users: This segment consists of consumers who purchase a particular
product or service infrequently, perhaps on a seasonal basis.
3. Offer seekers: This group consists of consumers who are primarily motivated by
price and seek out discounts or promotions.
4. Impulsive buyers: These are consumers who make purchases on a whim or
without much thought, often driven by emotions or situational factors.
2. Occasion Purchasing
This market segmentation strategy divides consumers into groups based on their
purchasing habits related to specific occasions or events. Occasion-based segmentation is
often used by businesses to tailor their marketing efforts to specific occasions or events
that are important to their customers.
For example, the department store Macy’s ran a social media-based Mother’s Day
campaign inviting their audience to share pictures with their moms using the hashtag
#MacysLovesMoms. Macy’s promised $3 to charity for every post added to social
channels.

3. Benefits Sought
Using this method, consumers are grouped based on the benefits they seek from a
product or service. This can include factors such as convenience, affordability,
performance, status, and innovation.
For example, the high-fashion brand Prada attracts shoppers by offering them status.
Using celebrities and known influencers in their marketing campaigns, the brand
promises buyers an aesthetic alignment with these personalities.

4. Loyalty
In this segmentation strategy, customers are grouped based on their past behaviour,
including their purchasing history and their level of engagement with your brand.
Customers who consistently use your services or products are considered loyal
customers, while those who have only made occasional purchases or have never
purchased from the brand are considered non-loyal customers.
Starbucks, for instance, has a loyalty program that rewards customers for purchasing
using their app. An app user can collect points as they complete a Starbucks purchase
and use them later on a free drink or food item.

The importance of marketing buyers’ behavior

Behavioural segmentation is important for businesses because it allows them to take a
more personal approach in their marketing, and a personalized experience for customers
is a huge competitive element for SMBs. When developing a marketing strategy or
creating content meant to target a particular demographic of consumers, an
organization may use a variety of techniques to learn about its target audience.
Marketing behavior can provide a business with valuable insights regarding
their customer's online actions and the material with which they engage.
Understanding what this strategy is can help a business decide whether this
approach is a good fit for their outreach campaign.
References

M. Walker
Last Modified Date: August 27, 2023 https://www.smartcapitalmind.com/what-is-market-
behavior.htm
https://blog.hubspot.com/marketing/what-is-behavioral-marketing#:~:text=One%20prime
%20example%20of%20a,to%20those%20products%20or%20categories.
https://www.impactmybiz.com/blog/what-is-behavioral-segmentation-in-marketing/
https://www.indeed.com/career-advice/career-development/marketing-behavior