Topic > Essay on Market Segmentation - 1086

Marketing, while including the activity of selling and advertising products and services, branches out (includes) many other different areas. The scope of marketing also extends to the development of a pre-sales product or service. For a product or service to exist, there must be a want or need on the part of the consumer before the product or service is established and designed to satisfy the consumer. The existence of a global and international market forces companies to be selective in what they offer to the markets of their choice; this is why segmentation has been very effective and beneficial for companies selecting their market segment. Segmentation and target marketing: the target market is a particular market segment on which a marketing campaign focuses. (Monash University, 2013). Market segmentation involves dividing a market into smaller segments of buyers with distinct needs, characteristics, or behaviors that may require separate marketing strategies or mixes (Kotler, Burton, Deans, Brown & Armstrong (2013)). Within market segmentation there are four types of consumer markets. They include geographic, demographic, psychographic and behavioral segments. (Figure 1.1)Figure 1.1Description of segmentsGeographical: market divided by location - climate, regional differencesDemographic: age, sex, marital status, income, occupation and educationPsychographic: intrinsic qualities of consumers - wants and needsBehavioral: the way a consumer responds/ uses a productCompanies such as the Volkswagen segment and addresses its market based, predominantly, on demographic and psychographic segments. However, a company like Volkswagen would also, to some extent, consider the geographic and behavioral sector...... middle of paper... all sedan; like Passat; lower quality; fewer features; good for a family Passat Sedan; affordable for middle class people; strong demand; good for a family Volkswagen has a medium to large product range. The table sorts 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 behavioral. As an individual included in one of the target markets, it was easier to understand the process by which Volkswagen promotes its vehicles in the two main primary markets and what attracts these specific groups. Through the market mix analysis, it was seen how Volkswagen collaborates with its ideas and promotes its vehicles to consumers.