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Business Decision

In: Business and Management

Submitted By ojay92
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4.1 In consumer markets, five major segments have been identified as the major segments. These are Geographic, demographic, geo-demographic, psychographic and behaviour based. Car manufacturers markets are unique markets. Different car manufacturers appeal to different class and segments of the markets. Hence for the purpose of this study I will be choosing the Demographic segments and Psychology segments as the two most profitable segments.
DEMOGRAPHIC SEGMENTS:
This can be described as a form of market segmentation of customers based on selective descriptive variables. These descriptive criteria ranges from Sex, age, race, occupation, socioeconomic status, family structure and race. According to Bassington and Pettitt (2013). The demographic segmentation tells a lot about the customer and the customers’ household which helps the Organization in setting clear marketing strategies (advertising, sales) for its target markets. Corporations like Porsche and Mercedes have used the demographic segmentation in identifying its target market and setting its media approach in selling its products.
Mercedes, BMW and Audi severally have embarked on demographic research in its bid to reach out to the younger population. Benz launched a demographic consultation campaign which led the company to discover an additional 75 million potential customers within the age range 20-24. This also led Mercedes to change its advertising strategy towards social media
Below is a table showing demographic research done by Mercedes and Porsche which led the company to making recent developments. | Age bracket Loyal to brand | Income bracket | New target demographics | Action taken | Impact on profitability | Mercedes | 40-upwards | 40000-upwards | 25-39 | Social Media campaignReduction in priceNew models that appeal to age range | Increased conquest rate by 82% |

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