Home » Posts tagged 'Product (business)'

Tag Archives: Product (business)

Understanding Occasion Segmentation and Benefit Segmentation

Occasion segmentation is dividing the market  into groups on the basis of the different occasions when the buyers plan to buy the product or actually buy the product or use the product. Some products are perceived to be apt for a particular time or day or event. Thus the motive behind occasion segmentation is to increase the ‘reason to buy’ so as to improve the sales of a particular product or service.

Occasional segmentation is divided primarily into three types:

  • Universal occasions
  • Regular personal occasions
  • Rare personal occasions

For example, orange juice is most commonly perceived as a breakfast juice, products targeted for Mother’s Day or Father’s Day gifts or the turkey bought during Christmas etc.

Benefit segmentation is essentially dividing the market on basis of the characteristics or features of the product or the service as perceived by the customers. In this method the different benefits that the product offers defines the target audience.

Example: Toothpaste is a great product to showcase benefit segmentation. Depending upon the audience segment the benefit that the toothpaste provides would be highlighted. By segmenting the audience according to the benefits through the copy, the advertiser can position the product in three different markets to achieve maximum advertising effectiveness.

  Sensory segment Sociables The workers The independent segment
Principal benefit sought Flavour, product appearance Teeth whiteness Decay prevention Price
Demographic strengths Children Young adults Large families Men
Special behavioral characteristics Flavoured product, special ingredients Smokers Heavy users Heavy users