Benefit segmentation requires marketers to divide the market based on the perceived benefit of the product or service. This type of segmentation may be used in clothing, appliance, consumer, cosmetic, and several other industries.
Benefit Segmentation Examples
An Athletic Footwear Company
People, who run an athletic footwear company can use this concept to segment their market into trail runners, professional runners, and recreational runners. Footwear for trail runners must be comfortable, less slippery, and must reduce the risk of injury. On the other hand, shoes of recreational runners must be comfortable, stylish, and inexpensive. Shoes for professional runners must be adequately cushioned, stable, flexible, and lightweight.
Outdoor Sporting Goods Company
Marketers of companies in sports goods industries can use benefit segmentation to divide their market into serious and recreational campers. Companies must manufacture high quality products for serious campers, as they don’t mind paying extra for quality products. Some of the products that can be developed for serious campers include expensive hunting, fishing, and camping gear. Recreational campers usually pay more importance to price over quality and require inexpensive and durable products.
Companies that manufacture appliances can segment their market into:
- Customers who are price conscious
- Customers who don’t mind paying extra for quality and options
- Customers who want to buy professional products
Price conscious customers would want to buy inexpensive products. These customers are less concerned about the quality of the product. On the other hand, there are customers who are willing to pay extra for quality products. For example, customers may be willing to pay extra for stainless steel finish or a longer warranty period. The third customer segment, may want to buy expensive professional products. This segment can include both commercial and domestic users.
Mobile Phone Manufacturers
Benefit segmentation can be used by mobile phone manufacturers to divide their market into work-oriented customers, highly social customers, and customers who consider mobile phones as a status symbol. Highly social customers would expect mobile phones to be durable, technologically advanced, and easy to use. Work-oriented customers would prefer buying phones that are inexpensive and durable. Mobile phones are considered as a status symbol by many people. They expect their phone to be technologically advanced, expensive, sleek, and stylish.
Segmentation of toothpaste market can be done on the basis of the benefits that users expect from the product. Some of the benefits users expect include reduce sensitivity, teeth whitening, tartar control, cavity protection, and fresh breath. Companies can manufacture products that offer one or more benefits.
Since users of cosmetic products have different requirements, companies must segment the market keeping in mind their unique needs. Some people buy cosmetic products to remove wrinkles while others buy products to reduce acne. Making a single product to meet the requirements of all users is not possible. Some of the possible segments include wrinkle removal, improve social status, reduce acne, skin repair, celebrity identification, and glowing skin.
Supermarkets and Big Retails Stores
This type of segmentation can not only be used by companies and manufacturers but also by big retailers and supermarkets. Some of the possible segments for supermarkets include:
- Fast shoppers
- Smart shoppers
- Day out shoppers
- Gourmet focused shoppers
- Variety seekers
Some of the benefits fast shoppers expect include simple aisle design, instant checkout, easy parking, home shopping option, and extended shopping hours. Smart shoppers expect the store to offer discounts, coupons, prizes, and loyalty programs. Day out shoppers enjoy spending time in the store and expect the store to keep new products and come out with promotional offers when they visit the store. Gourmet focused shoppers look for high quality products, exclusive brands, good service, and helpful store staff. In-store demonstrations, variety of products, and good selection of new launches are some of the benefits that variety seekers expect from a retail store.
Marketers must remember that a market can be viewed and segmented in several different ways. The biggest benefit of using segmentation approaches like demographic or benefit segmentation is to understand the overall market and identify the unfulfilled needs of the customer.