 Name: Noorulain Haider

 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 characteristics.

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 segmentation :

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 S2000.

2. Demographic segmentation :

Demographics 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 Civic Si, for example. A 20 year old
is more likely to choose this car than a 70 year old. There's more to demographics 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:

Psychographics 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
Civic Si.