Essay On Market Segmentation

Marketing, while including the business of selling and advertising products and services, branches out into (encompasses) many other different areas. The scope of marketing also extends to the development of a product or service pre-sale. In order for a product or service to exist, there must be a want or need from the consumer before the product or service is established and designed in order to satisfy the consumer. The existence of a global, international market compels companies to be selective in what they offer to their choice markets; this is why segmentation has been very effective and beneficial to companies selecting their segment of market.

Segmentation and Target Marketing:

The Target Market is a particular market segment at which a marketing campaign is focused. (Monash University, 2013).

Market segmentation involves dividing a market in to smaller segments of buyers with distinct needs, characteristics or behaviours that might require separate marketing strategies or mixes (Kotler, Burton, Deans, Brown & Armstrong (2013)). Within market segmentation there are four types of consumer markets. They include the Geographic, Demographic, Psychographic and Behavioural segments. (Figure 1.1)

Figure 1.1

Segments Description

Geographic: Market divided by location - climate, regional differences

Demographic: Age, gender, marital status, income, occupation and education

Psychographic: Intrinsic qualities of consumers - wants and needs

Behavioural: The way a consumer responds/uses a product

Companies like Volkswagen segment and target its market based on, predominantly, the Demographics and Psychographics segments. However, a company such as Volkswagen would also consider, to a certain extent, the Geographic and Behavioural se...

... middle of paper ...

...all sedan; same as Passat; lower quality; less features; good for a family

Passat Sedan; affordable for middle-class people; high demand; good for a family

Volkswagen has a medium to large range of products. The table orders Volkswagen cars from smallest to largest and explains how Volkswagen has segmented its products based on size, quality, features and price.

(Marketing Mix of Volkswagen, (2012))

Market segmentation is the division of the market into four types of segments: geographic, demographic, psychographic, and behavioural. As an individual included in one of the target markets, it was easier to understand the process by which Volkswagen promotes its vehicles to the two main primary markets, and what appeals to these specific groups. Through analysing the market mix, was seen how Volkswagen collaborates its ideas and promotes its vehicles to consumers.