Strategic Marketing: Planning and Control, Third Edition

The advantage of benefit segmentation is that it is a market-orientated

approach, which by seeking to identify consumers’ needs allow organisa-

tions to set about satisfying them.

Usage segmentation

The characteristics and patterns of consumer usage is the essence of this

segmentation approach. Consumers will generally fall into categories of

heavy users, medium users, occasional users and non-users of a particular

product or service. Identifying heavy users can be useful as they are likely

to consume a larger percentage of an organisation’s sales than other groups,

as the Pareto effect would suggest (see Figure 4.12). This can lead to the

identification of new segmentation opportunities for an organisation.

For example, Mangers re-launched their cleaning product Sugar Soap

which was a universal non-silica-based household cleaner by identifying

68 Strategic Marketing: Planning and Control

Quality seekerswish to have the highest-quality education available. They believe a top ranked education will benefit

them during their entire business life, and will lead to job advancement or a career change.

Speciality seekerswish to have a specialised education and to become experts in their areas of particular interest.

Concentrated courses tend to fit their needs, and they will search for institutions that offer them.

Career changersare seeking new jobs or employers and believe an MBA qualification will open up opportunities

for career advancement and mobility. They have several years work experience and feel that they are in a career

cul-de-sac.

Knowledge seekerswish to learn and feel increased knowledge will lead to power. They believe that an MBA will be

an asset not only in their career but also in all aspects of their life.

Status seekersfeel an MBA will lead to increased income and prestige.

Degree seekersbelieve that a first degree is no longer sufficient and that an MBA is needed in order to be competi-

tive in the contemporary job market. These individuals tend to be active, self-oriented and independent.

Professional advancersare striving to climb the corporate ladder. They are looking for professional advancement,

higher salaries and job flexibility. They are upwardly mobile, serious, future orientated and wish to build a career

within the current corporate structures.

Avoiderslook for MBA programmes that require the least effort to complete. They believe that all Business Schools

will provide essentially the same education. Their motivation is ‘other directed’ and they will seek low cost, ‘lower

quality’ programmes.

Convenienceseekers will join MBA programmes that are located near their homes or place of work and which have sim-

ple entry procedures. They are interested in any Business School which provide these conveniences and are low cost.

Non-matriculatorswish to undertake an MBA course without completing any formal application procedures. They are

therefore attracted to a Business School that allows them to begin an MBA programme without any formal application.

Figure 4.11
MBA benefit segments (Source: Based on Miaoulis G. and Kalfus, 1983)