Market Segmentation

1221 WordsSep 16, 20135 Pages
Segmentation and Target Market Paper Student’s Name: Institution: Segmentation and Target Market Paper This paper explores the segmentation, target market and product positioning of a company. The company of choice is BMW and its medium-size car BMW 3 series offered to a broad consumer market. When undertaking market segmentation, BMW does research on the geographic, demographic, behavioral, socioeconomic, as well as beneficial attributes of the society so as to help the company target the market in more effective manner. The demographics of consumers with potential to purchase a BMW product are often men and women aged between 30-50 years. Behaviorally, these demographics of people usually would have formed a successful image in…show more content…
BMW 3 series customers have distinct profile: ambitious, hardworking, successful, and satisfy they common needs for dynamical ad sportive driving. Also, they live relatively healthy by engaging in activities for keeping fit. From the social perspective, they fit well into the etiquette of the upper, middle upper and middle class. Behavioral Segmentation Behavioral segmentation involves dividing customers into groups basing on their knowledge level, attitude towards the product, their loyalty, the user status and usage rate, or response to a product (Kelly & McGowen, 2011). BMW’s customers can be said to already behaviorally targeted as the company focuses on customer types who are very loyal and knowledgeable of the company’s high quality products. They are regular buyers who know what they want from a new car model: quality, dynamism, speed, passion among others. They are mainly heavy users who enjoy the comfort of BMW’s cars, thus exhibit mostly positive and enthusiastic attitude towards BMW’s cars. Positioning statement: BMW’s brand and strategy Positioning refers to the act of developing the company’s offering and image to take a distinctive place in the minds of the target market. A company’s positioning statement communicates the concept of the product offering in terms of how it meets a consumer need. As such, the purpose of a positioning statement is often to create the desired brand perception before
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