Benefit Segmentation in Marketing: Examples & Overview

Benefit Segmentation in Marketing: Examples & Overview
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Lesson Transcript
Instructor: Shawn Grimsley
Consumers often make purchases based on the value or advantage that they believe a product will provide. In this lesson, you'll learn about benefit segmentation and look at some examples. A short quiz follows the lesson.

Definition of Benefit Segmentation

Benefit segmentation is dividing your market based upon the perceived value, benefit, or advantage consumers perceive that they receive from a product or service. You can segment the market based upon quality, performance, customer service, special features, or other benefits. Often, different grades of the same product are offered to different market segments. Many different businesses use this type of segmentation, including the auto, clothing, furniture, and consumer electronics industries.

Examples

Let's look at some examples to illustrate the concept:

You operate a running shoe company and decide to use benefit segmentation. You segment your market into professional track runners, trail runners, and recreational runners. You develop your products and marketing plans along those three segments.

You operate an outdoor sporting goods company. You decide to use benefit segmentation and divide your market into recreational campers and serious outdoor adventurers, who have difference tolerances for price and expectations of quality. You market your high-quality and expensive camping, fishing, and hunting gear towards your serious adventurers and your more casual, cheaper products to your recreational customers.

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