. . - Hoi © Roll no: FA20-BBA-105 © Assignment: Fundamental of marketing Question no.01: Take any real life example and explain how organizations do multiple ‘Segmentation, Answer: 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 type of shared characteristies. ‘Market segmentation assumes that different market segments require different marketing programs that is, different offers, prices, promotion, distribution, or some combination of marketing variables, Market segmentation is not only designed to identify the most profitable segments, but also to develop profiles of key segments in order to better understand their needs and purchase motivations. Insights from segmentation analysis are subsequently used to support marketing strategy development and planning © SEGMENTATION OF HONDA ‘To segment a market you begin by defining the market as a whole. The market as a whole, for Honda, is any person with a driver's license. The next step is to examine the four bases of segmentation (geographic, demographic, psychographic, and behavioural) and decide which are relevant to the particular product, and how they are relevant. 1.Geographic segmentatio Is geographic segmentation relevant to car buyers? Yes. The first decision Honda's marketers ‘would make is which cars to market in which countries. Europeans, for example, drive much smaller cars than Canadians. Within a country like Canada, Honda might also segment the market into rural and urban areas. People who live in rural areas are more likely to buy a Honda Pilot than a Honda $2000. 2. Demographic segmentation : Demographies is a general term for any measurable information about consumers that allows. marketers to group them into segments, Age is a relevant demographic for car buyers. The very young and the very old do not drive, and in between, say, from ages 20-70, the choice of car will be partly influenced by the person's age. Take the Honda Civie Si, for example. A 20 year old is more likely to choose this car than a 70 year old. There's more to demographies than simply age, though, such as segmentation by gender. Are women more likely to buy certain Honda models than men? Are men more likely to buy certain Honda models than women? There's also segmentation by income. A person's income level is a major influence on their choice of car. A young man just starting his career, or an older man working in a low-paying job, might desire an Acura NSX, but at $89,000 U.S., neither could afford to buy it. Family status, whether a personis married and whether they have children, is also a demographic factor that influences their choice of car. 3. Psychographic segmentation: Psychographies divide the market into groups based on lifestyle and personality. Here we have the heart of the car marketer's segmentation strategy. Look at the Honda Odyssey and describe the type of person who you would expect to see driving it. Now look at the Acura RSX and describe who you would expect to see driving it 4. Behavioural segmentation : Behavioural segmentation divides the market according to how they use the product, Some products are purchased according to an occasion, such as turkey at Thanksgiving, or children's clothing in late August and early September. The market for sporting equipment, for example, is segmented according to sport and skill level within that sport. For cars, the market can be segmented behaviourally according to benefits sought. The benefits provided by a Honda Odyssey mini van are very different from the benefits provided by a small car such as the Honda Civie Si