Companies always divide their market as the same product has different use and a different value for various types of consumers. Benefit segmentation is one of the ways of dividing the market according to the benefit derived by the consumer from the product. Benefit segmentation in simple words refers to segmentation of the consumers based on the benefit which they derive from using the product in question. In order to understand this concept let’s look at some of the examples of benefit segmentation –
Benefit Segmentation Examples
Mobiles
In case of mobiles, not all people derive the same benefit from the mobiles. Hence when it comes to youngster they prefer the mobile having good front and back camera so as to good pictures and videos of themselves or when it comes to professionals they prefer to have mobiles with good battery life or when it comes to higher society people they prefer to have high-end mobiles of Apple company and Samsung company so as to show off their mobiles.
Hotels and Resorts
In case of big hotels and resorts not all rooms are of same types, while some rooms have basic facilities only which are meant for those people who are looking for cheap rooms while some rooms have all the facilities along with value-added service like free spa, breakfast, and dinner which is ideal for those people who are looking for luxurious stay at the hotel. Similarly, many resorts have honeymoon suite ideal for newly married couples or executive’s suite suitable for corporates and so on.
Cars
In case of cars some people prefer to have those cars which give good mileage, while some people prefer big cars so that whole family can come in one car, while when it comes to young people they tend to go for sports car or people living in old cities tend to prefer small cars so that it can be parked easily and there is no problem of it getting stuck in traffic jams which happens constantly in city area.
FMCG Products
In case of FMCG products too we see many examples of benefit segmentation, take the case of cosmetics where companies segment market according to requirements of consumers as some consumers prefer to use creams for wrinkles, or some use it for glowing of skin and so on. Similarly, in case of toothpaste and soaps companies do this segmentation of consumers so as to increase their sales.
Movies
In case of movies also one see benefit segmentation because not all movies are made for all types of audiences and that is the reason why you see some directors making action movies only so as to target young audience or some directors prefer to make family drama movies so as to target middle age and old age people or some director make crime or suspense movies so as to cater to those people who prefer to watch these type of movies.
As one can see from the above that benefit segmentation is an effective marketing strategy and can be implemented by any company so as to increases the sales and profits of the company depending on the consumers and industry in which company is operating.