Benefit Segmentation - Definition & Importance

Published in Marketing and Strategy Terms by MBA Skool Team

What is Benefit Segmentation?

Benefit segmentation is the segmentation of the consumers based on what particular benefit of the product appeals to them. Benefit segmentation in marketing considers that for a particular service or product what is the value perceived, advantages or benefit that a customer gets. Different consumers look for different benefits and the marketer needs to understand each segment and accordingly develop his communication for each group.

Importance of benefit segmentation

People look for products from different perspectives depends upon what type of benefits they want to seek form that product. Benefit segmentation helps companies identify customers on the basis of the values they looking to take out from a product or service.

Benefit segmentation is one of the various ways of behavioral segmentation, as it helps companies tap customers based on the customer behavior. Behavioral segmentation is one of the four ways to do a market segmentation.

Benefit segmentation example

Each and every product or service gives some benefit to the customer. Some examples of benefit segmentation are as below:

1. Soaps- One particular soap offers a variety of benefits, say fragrance (liked by older women), fairness (liked by younger women), freshness (liked by kids), cleanliness (like by men),longer lasting(liked by housewives), etc. Benefit segmentation helps to identify each group and accordingly promote the product within that group.

2. Sport shoes- Certain products like sport shoes can offer various benefits for a different target group. Benefits like sturdiness (professional athletes), stylish (college students) etc can all be taken from sports shoes itself.

3. Smartphones - Smartphones can be classified as offering different benefits to different set of people. Smartphones helps in business (professionals), leisure (kids), stylish (brand conscious people) etc.

The above examples of Benefit segmentation highlight that it is upto the customer to identify what value he or she perceives from a particular product or service.

Hence, this concludes the definition of Benefit 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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