Marketing segmentation is a process of dividing a large homogenous market into identifiable segments having similar needs. It could help companies better understand the demands of specific customers. Through a print advertisement of SMART cars, this essay develops a segmentation profile using targeting variables, analyses the value position and differentiation SMART holds.
Bright background captures attention, manipulating the connotation of brown (pollution) and green (environmentally-friendly) as comparison in sizes, adds a sense of humor as seen in the less gas waste. Catchy slogan emphasizes that SMART cars are small yet powerful.
To segment a market, companies should consider different segmentation variables to describe the structure of the whole market and develop profiles of selected segments. There are four aspects of variables listed as geographic, demographic, psychographic and behavioral segmentation.
In the print advertisement, SMART customizes its products to suit the density on the basis of geography. It also segments through demographic factor differences such as age, gender, family type and occupation. Meanwhile, SMART places emphasis on values and lifestyles customers pursing via psychographic segmentation. What’s more, it subdivides buyers into groups based on their attitudes towards vehicles and knowledge of the products to form behavioral segmentation.
According to the segments mentioned above, this type of mini-cars targets at residents living in the city areas rather than countryside because it can be easily parking. The cute and delicate outline of the car on the poster makes SMART more attractive to women. It also catches the attention of young singles or young couples without child. University students or newly graduates may prefer SMART because their relative cheap prices. And those customers pursuing green lifestyle can be satisfied as SMART is fuel-saving and environment protective. Nowadays, SMART is more like a driving toy and it should stimulate the curiosity of the potential buyers.
Market position refers to the relative positioning of the company within the competitive market. It is determined by the identity that the company acquires in the minds of the target market. In customers’ heart, SMART is positioned as small and exquisite. The vehicles are described as stylish and creative while they are modeled due to the environmental awareness.
The point of differentiation involves with its competitive strengths and insight about consumers' motivations. It is one of the most compelling benefits that the company can own in the minds of consumers based on pure psychological factors. SMART differentiates its products with compact designs which allow the cars could park at every corner in the city. It also builds an impressive reputation for the concept of environmental protection resulting from low fuel consumption and low carbon emission.
CONCLUSION
Market segmentation is important when it comes to devising customer-driven market strategies. It helps companies to determine and select the groups of customers they would serve through segmentation variables. Targeted buyers may be more satisfied if specific products are served. Moreover, positioning and