Benefit segmentation is a classification method based on the different benefits that consumers seek from brand products. Someone in the United States used the benefit segmentation method to study the watch market and found that watch buyers can be divided into three categories: about 23% of consumers focus on low prices, 46% of consumers focus on durability and general quality, and 31% of consumers focus on brand reputation. At that time, major watch companies in the United States focused on the third market segment, manufacturing luxurious and expensive watches and selling them through jewelry stores. Only TIME Company had a unique vision and selected the first and second market segments as target markets, and launched a cheap and good “Timex” brand watch and sold it through general watch stores or large comprehensive stores. The company later developed into a world-class watch company.
When using the benefit segmentation method, it is also necessary to determine the main benefits that people seek in the product category, who is seeking these benefits, how important these benefits are to them, which brands can provide these benefits, and which benefits have not been met, and then carry out targeted brand marketing planning. American scholar Haley once used the benefit segmentation method to segment the toothpaste market and achieved success. He divided the benefits that toothpaste users seek into four categories: economic benefits, prevention and treatment of dental diseases, beauty of teeth cleaning, and refreshing taste. Toothpaste companies can understand the brands of competitors and the benefits that existing brands lack based on the characteristics of the target market they serve, so as to improve their existing products or launch new products to meet the unmet benefit needs in the toothpaste market.