Occasion Segmentation Essay
There are many behavioural characteristics of buyers and consumers and one way to segment these groups is to associate their purchasing habits with Occasional and benefit segmentation. Occasion Segmentation In its simplest form Occasion segmentation is the process of dividing a consumer group or groups into groups according to an occasion or occasions when consumers purchase or use a product or service. For example some major religious/cultural occasions in Australia worth noting would be Christmas Day and the Easter season, where there would most likely be an increase in the consumer demand for chocolate and wine.
Another important occasion would include Australia day where there would be noted increase in demand for alcohol to satisfy the demand for patriotic party goers. Other examples of occasion segmentation would include Mother’s day, Father’s day, AFL and NRL grand finals and birthdays. These are all occasions. Many products and services are noted for being popular and very appropriate for Occasions as mentioned above and it is interesting to note that smart businesses are orientating there choice of product and service to cater to these occasions.
In my location; Albury/Wodonga; Florists purchase additional advertising space promoting specific occasions where flowers are most popular. You don’t need a marketing degree to know that Mother’s day is one of the peak busy periods for these businesses and smart operators are now gearing the kind of product on offer to suit the occasion. For example one does not just buy a random bunch of flowers for mum; we buy specialised gifts specifically for mothers and include a personalised gift tag appropriate to the occasion.
Some purchases are based on major occasion as stated above however we should also include seasonal occasional segmentation i. e. Sun block cream and mosquito spray for summer or electric blankets and warm pyjamas for winter. We can also use occasion segmentation grouped by particular time of day and day of the week including purchasing decisions on breakfast foods and a formal weekend dining experience with friends or family. Benefit Segmentation Benefit segmentation is the process of dividing a market into groups based on the different perceived or known benefits consumers gain from using a roduct.
The different benefits a product offers helps to defines its target market. You use the example of Toothpaste in your course notes; I have chosen orange juice and attempted to seek benefits in each defined segment. Group A: Budget buyer These are economy buyers who purchase packaged fruit juice drink. This is “fruit juice drink” not fruit juice, it contains fruit juice concentrate, mostly imported, high levels of sugars and water. It has little or no nutritional value however it is inexpensive and convenient to purchase in plastic bottle or long life small volume tetra packaging.
This product is directly marketed to budget convenience buyers who are not looking for high nutritional value. Group B: Convenience buyer Ever found yourself in the situation where you have guests staying over and not enough oranges to juice for Sunday Breakfast? Luckily we can purchase reasonable quality packaged fruit juice from our local supermarket. Some are made from fruit juice concentrate but today we can find a variety of leading brand names that claim to be freshly squeezed, these include Golden Circle, Ducats and Daily Juice Company to name a few.
These products are more expensive than those in groups A however the perceived benefit is convenience with a better or fresher product. Group C: No substitute for the real thing The product benefits of taste, health and freshness outweighs the convenience offered by products purchased by consumers in groups A and B. For users/squeezers the raw price of oranges would have to be ridiculously high to change their buying habits. For this group there simply is no substitute for quality the perceived benefit is freshness, quality and health.