dividing or breaking the total market into a series of smaller markets, or segments, based on the different benefits sought from the product by consumers.

Benefit segmentation relates to the process of dividing a market based on the specific benefits consumers seek from a product. For example, some car buyers want safety and security from their car, while others look for comfort or speed. A car manufacturer, therefore, has to decide which benefits to offer – and how these benefits should be communicated to the customer

The process of grouping users into market segments on the basis of the desirable consequences sought from the product. For example, the library market for children's books, may include children and parents who are benefiting by developing the library and reading habit, and or recent immigrants who benefit from learning the language of the new country. Each is receiving a benefit from the product or service.