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Benefit Segmentation - Explained

What is Benefit Segmentation?

Written by Jason Gordon

Updated at December 15th, 2021

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Table of Contents

What is Benefit Segmentation?How does Benefit Segmentation Work?Academic Research on Benefit Segmentation

What is Benefit Segmentation?

Benefit segmentation is the clustering that is done based on the perceived value or benefits to the end customer. That is, most products offer one or more value proposition to intended customers. Customers may value the various value propositions of the product differently. As such, companies segment these customers based upon their preferred value offering. The company will then seek to more effectively market the products value proposition to those specific customers.


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How does Benefit Segmentation Work?

Market segmentation is a significant process in all marketing strategy. To illustrate market segmentation, imagine a market with ten various shoes without branding or description. The decision to purchase the shoes will be based on one or more customer values. For example, the customer may desire comfort, fit, style, utility, etc. The customer market could be segmented into these various attributes for purposes of marketing. The segmentation is beneficial to the managers of footwear companies in dividing their markets

Related Topics

  • What is a Market?
  • What is Target Marketing?
  • What is Market Segmentation?
  • How Many Segments to Target?
  • How Do We Segment Consumer Markets?
  • Benefit Segmentation
  • How Do We Segment Business Markets?
  • Using Data for Market Segmentation
  • Buying Power Index
  • What is Customer Relationship Management?
  • What is Behavioral Targeting?
  • What is Positioning?
  • What is a Positioning Statement?
  • What is a Perceptual Map?
  • Cultural Factors Affecting Marketing
  • International Marketing is Challenging

Academic Research on Benefit Segmentation

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benefit segmentation

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