Re: Explain how and why customer group are targeted for a selected products
Market Segmentation is the process of defining and subdividing a large homogenous
market into clearly identifiable segments having similar needs, wants, or demand
characteristics. A market can be segmented on the basis of many things.
It can be segmented based on Demographics such as sex, age or income. It can be
segmented based on Psychographics such as Interests, Activities, Opinions or
Lifestyles. It can also be segmented based on Purchase Behaviours; so what type of
items a customer purchases and market the products using that.
Businesses segment their market because their objective is to design a marketing
mix that precisely matches the expectations of customers in the targeted segment.
Segmenting the market can also improve the business because it can increase
profits through targeting specific products to people who have interest in them and
improve the business as a whole.
Mercedes Benz
Mercedes Benz is a German automobile manufacturer that sells their cars
worldwide. It is renowned for the Mercedes Maybach which they developed and sold.
It was a turning point in the market because Mercedes had developed a highly
luxurious vehicle which caught the eye of everyone as it was ridden past.
Mercedes has segmented their market by targeting their products for people who like
a sporty lifestyle, people who like to drive around comfortably and live a luxury
lifestyle, for people who have big families and for people who like to be economically
friendly. They have also segmented their market based on an individual’s income.
Large Families
People that have large families will need to have a car with more than the average 5
seats. Mercedes currently offer the GL class, R Class, V Class and Viano. These
cars all have a minimum of 7 seats which is ideal for a large family. There are not
many cars in the market for families of more than 5 so this car allows them to all fit
inside without anyone missing out. It is also targeted for Large Families because it is
very spacious even with the high number of seats so there would be plenty of room
for everyone. Also, if you have a big family, then that means there would most likely
be lots of extra space needed for luggage’s and other items etc, which Mercedes can
offer in their MPV’s which also attracts big families. Boot space is important to them
because they have so many people in their family that they need more than the
average size of boot space. Mercedes’s cars which have more than 5 seats are also
practical for a large family because it has the features that a family would benefit
from. Their cars have low running costs and are available with automatic
transmission which reduces the tasks needed to be taken to drive a car. They also
come with a navigation system which can come in handy for long journeys.
Sporty Lifestyle
Page 1 of 3
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller ishmam-99. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $3.87. You're not tied to anything after your purchase.
