Chapter 8: Segmenting and Targeting Markets

Well many people might heard the particular words of segmentation and targeting markets but not many of us understands it as well. A market segmentation is the process of dividing a broad consumer or business market normally, consisting of existing and potential customers, into sub groups of consumers known as segments based on some share characteristics. Volkswagen considered the largest automaker company in the world and the richest company in the world they do their best in meeting particular needs of costumers and more essential new consumers. But not only Volkswagen do this most of the companies do knowing that we live in a very diverse society is very difficult to identify the needs of people as soon as possible but observing  the sales statistics of Volkswagen they are able to achieve this particular goal and willing to improve in it.

Knowing that Volkswagen is a European company most of its revenue come from Europe they control the market in Europe but they looking forward to spread more their particular in the united states and try to make a stand in the united states market which is very important as well.

There are many types of segmentation but this are the 3 most essential segmentations the Geographic segmentation, Demographic segmentation, and Psychographic segmentation. this types of segmentation are most accurate and most essential in the market area.

Geographic segmentation: is a common strategy when you serve customers in a particular area, or when your broad target audience has different preferences based on where they are located. This marketing approach is common for small businesses that serve a wide demographic customer base in a local or regional territory.

Demographic Segmentation: is market segmentation according to age, race, religion, gender, family size, ethnicity, income, and education. Demographics can be segmented into several markets to help an organization target its consumers more accurately.

Psychographic Segmentation: involves dividing your market into segments based upon different personality traits, values, attitudes, interests, and lifestyles of consumers. This segmentation is advantageous because it allows you to engage in product design and marketing in a focused manner.

Volkswagen has made an outstanding job following this particular segments but they have been more focus on the geographic segmentation knowing that is a multinational company it has to build a lot of strategies based on locations and target the costumers in each particular place.

Sources:

-http://smallbusiness.chron.com

-http://www.marketing91.com