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Marketing Management/Essentials of Marketing

Notes such as unaware of the product, aware, interested, desirous or contemplating to purchase the
product. Based on attitude, consumers may be enthusiastic, indifferent or hostile towards the
product and these differences can be used to segment the market.

Table 5.2: Benefit Segmentation of Toothpaste Market
Principal Benefit Psychographics Behavioural Demographic Brands Much
Sought Characteristics Characteristics Characteristics Favoured
Brightness of Outgoing, active Smokers Teenagers, Close-Up,
teeth (cosmetic) fun-loving, high youngsters Promise,
sociability Aquafresh
Decay prevention Health conscious Heavy users Large families Pepsodent,
(medicinal) Colgate Total,
Forhans
Taste (good taste, Self-indulgent, Mint lovers Children Aquafresh,
flavour) hedonistic Colgate
Low price Price-conscious, Heavy users, Men, Neem, Babool,
(economy) independent deal prone traditional Vicco Vajrdanti

Source: Adapted with changes from Russel J. Haley, “Benefit Segmentation: A Decision Oriented Research
Tool”. ‘Journal of Marketing’, July 1963, pp. 30 – 35. Also, Haley, “Benefit Segmentation – 20 Years
Later”, ‘Journal of Consumer Marketing ’vol. 1, 1984
5.2.5 Benefit Segmentation

By purchasing and using products, consumers are trying to satisfy specific needs and wants. In
essence, they look for products that provide specific benefits to them. Identifying consumer
groups looking for specific benefits from the use of a product or service is known as benefit
segmentation and is widely used by marketers.

Example: There are distinct groups of auto buyers. One group might be more interested
in economy, the other in safety and still another in status etc.
Segmentation bases, such as demographics are descriptive. These variables are useful but do not
consider why consumers buy a product. Benefit segmentation has the potential to divide markets
according to why consumers buy a product. Benefits sought by consumers are more likely to
determine purchase behaviour than are descriptive characteristics.

Benefit segmentation can be seen in the toothpaste market; fresh breath, decay prevention and
whiter teeth are some examples and the brands involved are Colgate Total, Close-Up and
Promise etc.

5.2.6 Demographic-psychographics Segmentation (Hybrid Approach)

Demographic and psychographic profiles work best when combined together because combined
characteristics reveal very important information about target markets.
Demographic-psychographics information is particularly useful in creating consumer profiles
and audience profiles. Combined demographic-psychographic profiles reveal important
information for segmenting mass markets, provide meaningful direction as to which type of
promotional appeals are best suited and selecting the right kind of advertising media that is
most likely to reach the target market.

Example: Cosmetics companies first divide the market on the basis of gender, then age
and then according to their lifestyle, they target people with different brands.

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