Peugeot is a French car manufacturer which started as a family business building salt and coffee grinders. After some time, the company turned to making different products and finally settling to cars (PEUGEOT models & history, 2017). Targeting is the process of selecting consumers who will buy a product or service a business is offering.
Peugeot has a new line of cars, the MPV (multi-purpose vehicle) which is targeted to both business to customer and business to business markets. The business to customer market comprises of individuals, thus having consumer products which are for personal or household use (Fahy, Jobber, 2015). For example, Peugeots MPV is perfect for both since, there is a lot of space for the whole family and is “designed …show more content…
118). A business will have to target a specific group of consumers so as to create “a commercially viable method of serving these customers” (Fahy, Jobber, 2015, p. 118). However, to do this one will have to segment the market and chose the best possible division for the product the business is offering. Market segmentation is one of the very important tools every marketer needs to use in order to split a markets heterogeneous demand into unique customer groups otherwise known as segments (Dickson & Ginter, 1987, p. 4). Since, it is a sensible tactical decision to regulate marketing activities and marketing mix in accordance with features of diverse market segments (Bass, Tigert, & Lonsdale, 1968, p. 265). Additionally, when a market is segmented the company has the opportunity to watch growth in the market and they can expand their product line (Fahy, Jobber, 2015, p. 119). A good example of this would be a company who sells healthy snacks, notices that the market segment has grown and is interested in a larger variety of snacks so it decides to launch a new product line with different snacks. There are a few groups in which “consumer segmentation criteria may be divided into” (Fahy, Jobber, 2015, p. 119). First and foremost, there is psychographic segmentation which is when researchers accept that buying is connected to the personality or …show more content…
The market Peugeot is interested in is the Greek automobile market. Peugeot should take into account the fact that economical multi-purpose vehicles are trending now in Greece since the economy has made people want to have a single economic car that can do everything they need. After the market has been defined it is time to segment it. To create market segments Peugeot needs to review and choose variables that are known to affect consumer purchasing behaviour. By employing criteria stated above, Peugeot can identify five market segments, two of which are for the business to business market. The segments of the business to business market are, transportation businesses, such as travel agencies and taxi companies who provide their drivers with cars since, the MPV will benefit them greatly by increasing their transportation capabilities for a variety of different items and people. Additionally, there is the segment of companies and organizations who occasionally need to move items or people, in this segment there is a very big variety of companies who will benefit from such a vehicle, one of which are elderly homes as, they sometimes need to transfer their residents and the MPV is very spacious and has a very nice ride comfort. The business to customer market has three segments Peugeot can profit from. Firstly, there is the segment of people with active lifestyles who want a multi-purpose vehicle so that they can