Occasion Segmentation - Definition & Importance

Published in Marketing and Strategy Terms by MBA Skool Team

What is Occasion Segmentation?

Occasion segmentation is the process of dividing the market into groups according to specific occasions related to the customer. Occasion segmentation focuses on slicing the market based on certain specific events during a particular time, when a customer is in a need of a product or a service. This type of segmentation is usually time bound and helps targets those customers who want a certain product for a certain event or occasion.

Importance of occasion segmentation

Some products or services are seen as being appropriate for a particular situation or occasion. Meaning, that the customer is looking for specific products on specific times or occasions. Occasion segmentation classifies the customers into time bound needs based on some certain important event in a persons life. Such products would be very useful during that particular occasion and would otherwise be irrelevant.

Occasion segmentation is one of the different ways of carrying out behavioral segmentation, as it uses the customer's buying behavior pattern of buying on occasions. Behavior segmentation is one of the four types of market segmentation.

Occasion segmentation is primarily divided into three types:

1. Occasions for all or universal - These are certain events which happen for everyone around the world. Companies can use this time period and can cater to the needs of the customers.

2. Regular personal occasions - Certain important events occur regularly for people. Occasion segmentation helps identify those customers with a specific need during these events and can be targeted easily

3. Rare personal occasions- Some events happen very rarely for a customer but can be extremely important. Hence companies focus on targeting those customers who can buy their products or service during that particular occasion.

Occasion segmentation examples

1. Universal occasions- There are certain events which help companies target customers. Events like Christmas, Diwali, Easter is a good opportunity for chocolate companies to aggressively promote their products. Another example is during football world cup, companies selling footballs, merchandise etc can use occasion segmentation to tap the market better

2. Regular personal occasions - Events like a person's birthday or anniversary occur regularly. These are targeted by companies making cakes or gift items. Tour and travel companies often give discounts to couples travelling for their anniversary

3. Rare personal occasions- One of the major rare occasion in a person's life is their wedding. Occasion segmentation is done by wedding management companies, bridal dress brands, companies offering honeymoon packages, banquet halls etc.

Hence these are some examples where occasion segmentation is used to target customers effectively.

Hence, this concludes the definition of Occasion Segmentation along with its overview.

This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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