Segmentation and Target Market of Mercedes-Benz
Due Date: February 4, 2014
Professor Jason Leonard
Market segmentation is a marketing strategy that involves dividing a broad target market into subsets of consumers who have common needs and applications for the relevant product. One of the main reasons for using market segmentation is to help companies better understand the needs of a specific customer base. This paper will examine the market segmentation within the luxury automobile market, the target market for Mercedes-Benz, and the selection process for that market.
Mercedes-Benz is a German automobile manufacturer, a multinational division of the German manufacturer Daimier AG which manufactures luxury automobiles, buses, coaches, and trucks. Their slogan is “ Das Beste oder nachts”, or “the best or nothing”, and their image has lived up to their moto. The company was founded in 1926 under Daimier-Benz, but traces it origins back to Damiier-Motoren-Gaselischaft’s 1901 Mercedes, and to Karl Benz’s first petrol-powered car in 1886 know as the Benz Paten Motorwagen, which has been regarded as the first automobile. They are part of the “German Big 3” luxury automakers, along with Audi and BMW, which are among the best selling luxury automakers in the world.
Psychographics plays a big role in market segmentation. Psychographics is the analysis of personality, values, attitudes, interests, and lifestyle, which can be contrasted with demographic variables (such as age and gender), behavioral variables (such as usage rate or loyalty) and demographic variable (location). Automotive styling has as much to do with appearance and emotion as it does with function, especially when it comes to high-end vehicles. There is a perception of stature and prominence associated with a luxury vehicle, and the name Mercedes-Benz has certainly represented these qualities. Cars do not just get us from point A to B,...