Market Segmentation Strategies

Market Segmentation Strategies

Introduction

Customers are the drivers of a company's success and progression. Every company strives to serve their customers in a best possible manner in order to provide customers satisfaction which in turn results in the success of the company. The organizations devise and formulate their strategies keeping in view the demands and requirements of their customers. They also control and manage the particular strategies of their organization in the market in order to retain the customers for a long term period of time. For this reason, companies divide their customers on the basis of segmentation strategy in order to best serve their customers. The three major segmentation strategies in management that organizations adopt for serving their customers include psychographic segmentation strategy, demographic segmentation strategy and geographic strategy (Thompson & Martin, 2010). These strategies are discussed in the paper. The strategies are also applied to the Toyota Company which is one of the biggest automobile manufacturing companies in the world.

Demographic Segmentation Strategy

In Demographic market segmentation strategy, the companies divide their target market customers on the basis of their gender, age, ethnic background, income and family lifecycle. Companies adopt this strategy because of the readily available data and information regarding the demographic characteristics of the people. The demographic information reveals a number of facts regarding the consumer behavior and buying behaviors of customers (Thompson & Martin, 2010).

The private user segment of Toyota cars in consists of females and males between the ages of 30 to 50 years. Most of them are married that is having responsibilities of the family. The customers are educated and belongs to A or B class in the socioeconomic segment (Toyota, 2012). This shows the professional aptitude of the customers. They are likely to buy environment friendly cars and ready to pay ...