Human beings have many differences between them. Our genetic make-up is different, we live through different life experiences, we have varying religious beliefs and so on. In the same way, as consumers we have different views regarding goods and services. As a marketer, one needs to appreciate the differences even as they plan to start supplying their goods and services. Dividing the market into smaller segments based on consumer characteristics is what is known as behavioral segmentation.

There are a number of differences between this form of marketing and the traditional marketing styles. Traditionally marketing was done by targeting a large heterogeneous group of customers. The marketer typically sent out promotional message to the group without considering any stratification. This type has the disadvantage of failing to address the concerns of different consumers adequately. It therefore results in returns that are much lower returns.

There are several types of behaviors that one may choose to use in the stratifying the market. There are really no hard and fast rules about these. All that you need to do is to identify the determinants of the demand for your goods. Product loyalty varies widely among clients. By identifying the groups of loyal and the less loyal customers, several segments can be created on this basis. The next this is to identify the reasons behind this difference.

Another way of dividing the market is to determine the kind of benefits that are sought by various consumer groups as they demand for goods. It should not be assumed that all consumers buy products for the same reason. Many products have multiple uses and as such demand is likely to be influenced by different factors. The marketer will need to establish which benefits are demanded by a given group of customers and the reasons driving the demand.

Occasional buying is the buying of goods in high quantities during certain occasions. For example, Christians tend to buy more religious based gifts during the Easter and Christmas festivities. Chocolates are reported to be on high demanded during festivals. By knowing what products are demanded on given occasions and by which groups of customers, the suppliers will position themselves to ensure that the demanded products are made available in timely fashion.

The rate of usage is proportional to the demand. Clients who demand more of a product are more likely to be heavier users than those who demand less. One can use this attribute to divide their pool of clients into the heavy, moderate and light users depending on the frequency of use of a certain product. Apart from the frequency of use, the quantity used should also be factored in.

Buyer readiness stage may be used in some cases. There are about six stages that can be considered including awareness, knowledge, liking, preference, conviction and purchase. These stages include an increasing level of readiness to buy or use a certain good or service. Awareness denotes that clients know that the product exists in the market and at the purchase stage they spend money to get it.

There are several other options of market subdivision that can be considered besides behavioral segmentation. Demographic, psychographic and geographic characteristics can all be used. The main objective is to make sure that the groups are large enough.