Strategic Marketing: Planning and Control, Third Edition

However identifying consumer behaviour rather than their personal
attributes can be a more effective way of identifying market segments.
The main behavioural variables in this category are benefits, usage and
purchase occasion.

Benefit segmentation

Benefit segmentation uses the underlying reasons why an individual pur-
chases a particular product or service, rather than trying to identify an
individual’s particular personal attributes.
Benefit segmentation is based on the concept that the key reason a con-
sumer buys the product or service is for the benefit that product or service
gives them. Identifying groups of consumers that are seeking a common
benefit in a particular market allows a producer to develop specific prod-
ucts or service offering. An example of benefit segmentation would be in
the management education market. A survey in the USA found that there
were several benefit segments in the market for MBA qualifications (see
Figure 4.11).

Segmentation 67

Segment Geographical boundaries Description Population

(million)

1 UK and Ireland Average age and income profile; 60.3

English as a common language

2 Central Germany, central and High proportion of older people and low 54.5

northern France, southern proportion of middle aged; average income;

Belgium, and Luxembourg German and French languages

3 Portugal and Spain Young population; below average income; 50.4

Portuguese and Spanish languages

4 Southeastern France, Southern High proportion of middle-aged people; 71.5

Germany, Northern Italy above average income; French, German

and Italian languages.

5 Southern Italy and Greece Young population; below average income; 31.2

Italian and Greek languages

6 Northern Germany, the High proportion of middle-aged people; 57.6

Netherlands, northern Belgium, very high income; multilingual; German,

Denmark, Sweden, Finland, French Italian and Scandinavian languages

Norway, Iceland and Switzerland

Note: Norway, Iceland and Switzerland are not currently in the European Union.

Figure 4.10
Euro-consumer segments using geodemographic segmentation (Source: Adapted from
Vandermerwe and L’Huillier, 1989)