Segmentation Variables Essays Examples

Type of paper: Essay

Topic: Customers, Business, Segmentation, Company, Market, Marketing, Products, Media

Pages: 6

Words: 1650

Published: 2021/01/14


Marketplace involves customers and customers differ from one another in distinct manners. Variation depends greatly on distinct elements such as wants, purchasing attitude, resources, locations and purchasing practices (Ferrell and Hartline, 2005). Through way of segmentation, huge heterogeneous marketplaces are split into smaller sections, which could be handled more resourcefully and efficiently with and services which match well with their exceptional wants (Kerin, 2012). Thus, market segmentation is advantageous for the corporations serving bigger marketplaces (Adcock et. al., 2001). Additionally, the concept of market segmentation basically refers to the procedure of splitting the overall target audience into different customers groups having similar interests or traits. The traits employed during segmentation link with the segmentation approach or strategy. Within the selected approach, particular variables make contribution towards the development of particular customers segments having alike qualities (Goldstein and Lee, 2005). Moreover, market segmentation is regarded as being a vital fraction of an organization’s marketing approach. It refers to the procedure of splitting a wider target market into smaller, homogeneous sets of buyers which the company could more effectively market to. Moving ahead, both business-oriented and consumer-oriented corporations should segment buyers by making use of one among the various common strategies (Kerin, 2012).
Further, taking the above discussion into consideration this particular paper attempts to identify the marketing and segmentation variables used in the given advertisement of Mercedes S Class, for the purpose of determining the target market and putting forward explanation of the selected target marketplaces. Finally, the paper attempts to recognize and justify the positioning approach adopted by Mercedes. The paper highlights how luxury car corporations such as Mercedes segment its marketplace. Also, the paper employs the AIDA marketing conception and integrates it with the paper.

The below sections mirror different types of segmentation variables by throwing light on the segmentation variables in the provided advertisement of Mercedes S Class:


Demographic marketplace segmentation is one among the highly widespread strategies for segmenting marketplaces. With this approach, an organization simply splits the bigger marketplace into groups grounded upon various defined features (Goldstein and Lee, 2005). Moreover, age, race, marital status, gender, occupation, income and education are amongst the widely adopted traits of demographics segmentation. For instance, an organization selling feminine hygiene items would consider females as its primary market segment. In case of the given advertisement of Mercedes Benz S Class demographics takes in adults both male as well as females, particularly the middle-aged group.


Geographic segmentation is adopted through corporations which sell services or products particular to a specific society, region, state, nation or group of nations (Kotler and Keller, 2009). Local companies normally attain no advantage in paying for local or global advertising. Corporations, which function nationally, could frequently save by putting across the same marketing message to a national audience by way of same television, magazine, radio or newspaper advertisement (Adcock et. al., 2001). International companies normally make a decision whether to sustain a universal message or customize messages for every nation’s market. With respect to geographic segmentation of the provided advertisement of Mercedes S Class it can be stated that it is chiefly targeted towards somewhat wealthy nations. The car would be sold all over the globe but its chief market would be within the United States, the United Kingdom and Europe.


Psychographics or lifestyle segmentation has turned out to be highly widespread as corporations look for identifying customers grounded upon interests and practices in place of demographics (Goldstein and Lee, 2005). For psychographic segmentation, the S Class is expected to be widely bought amongst individuals having family. Few reasons why customers would prefer S Class is safety and as it is a luxury vehicle it offers a particular status amongst the community.


Behavioral segmentation is grounded upon customers’ behaviors, taking in patterns of use, brand loyalty, price sensitivity and expected benefits (Kotler and Keller, 2006). An organization might have consumers having similar demographic framework but diverse behavioral traits. Few individuals might utilize the product every day, whereas others utilize it weekly or monthly. Greater-income earners might hold higher interest towards superior-quality frameworks in contrast to low-cost frameworks (Kotler and Keller, 2012). This might persuade the provider to target superior-end provisions and products to one group as well as more value-directed services to budget-conscious or lower-income buyers. Further, at the time when referring to the advertisement of Mercedes S Class behavioural segmentation, it can be observed that would be chiefly purchased amongst heavy users and it’s a car which could be used on a daily basis. The people buying S Class would do it for several different reasons i.e. status, beauty, features and speed.

Business Segmentation

Segmentation for business buyers frequently, has overlap but normally comprises of geographic, behavior-based and customer type approaches (Kotler and Keller, 2009). Geographic business segmentation is similar to customer segmentation. Buyer based segmentation might involve size of the business or business nature. For example, banks frequently have diverse products or services for small versus huge companies. Moreover, behavioral segmenting is grounded upon repeated or trustworthily buyers in contrast to one-time customers. Further, in case of provided advertisement of Mercedes S Class it can be stated that it would adopt same approach for all buyers and nations.

Target and Segmentation Strategy of Mercedes

Mercedes-Benz is one of the chief examples within the premium sector, which offers a method for catching the attention of middle to higher income level customers (Ferrell and Hartline, 2005). The German company offers an effective approach for attracting buyers losing brand reputation. Mercedes-Benz has made a decision to reach further into the consumer lifecycle and spread into customers demographic. The company is attempting to impact the audience away from corporations, like BMW, Ford, GM, Toyota, and Chrysler by making use of several approaches.
The target audience of Mercedes S Class takes in customers varying from ages within the early twenties to forties having a projected marketplace size of high number of potential buyers. The chief impetus for stepping into the customers market is undoubtedly the importance of the marketplace size making it highly striking for such luxury automotive producers (Kurtz, 2010). The approach that the majority of mass market automotive producers such as Mercedes adopt takes in offering a product to the customer all through their lives with gradually greater priced items as the buyer shifts up income level (Ferrell and Hartline, 2005).
The chief approaches adopted by Mercedes for enticing buyers have been product line extensions with a lesser cost point and launch of new models. A lesser cost trims down the entry barrier and the cost opposition for less wealthy buyers whereas leveraging the appeal of the luxury brand (Kurtz, 2010). Additionally, the other approaches for attracting the younger customers take in the styling as well as size of the new automobile.
Mercedes has also made high efforts to catch the attention of younger generation as well. Examples of the company attempting to get in touch with the younger customers began in the year 2010 with the development of “Generation Benz”, which is an online forum of over 200 individuals falling between the age groups 20 to 39 (Kurtz, 2010). Moreover, this online forum offers information to the marketing team of Mercedes-Benz regarding customers preferences and habits falling within this demographic. The online community assists a lot in developing a buyer profile for the company. Mercedes leveraged the outlook from the community for creating an effective marketing campaign for introducing the Mercedes-Benz CLA model.
Mercedes makes use of social media and digital channels for the purpose of targeting customers using a mix of paid media, earned media and lastly, owned media for reaching chief influencers within the intended demographic for creating brand consciousness and eventually brand equity (Kurtz, 2010).

Digital and Social Media – Owned Media

Mercedes makes use of digital media with high application of microsites for every product range. Social Media networks which take in YouTube, Facebook, Twitter and Instagram are too used for increasing consciousness (Ferrell and Hartline, 2005).

Paid Media

The company uses paid media, like a paid Facebook advertisement intended towards the early 20s to 40s demographic. Such paid adverts could be observed in the target customers’ newsfeed related with a well-developed content piece (video) for creating a viral reaction.

The company uses content marketing approach employing a converged media strategy intended towards attracting younger target customers (Kurtz, 2010). The earned media element involves the alliance with Casey Niestat, one among the chief influencers within this demographic offering a somewhat edgy, cool, adventurous, and lastly, genuine product image.

AIDA Model

AIDA is basically a concept adopted in advertising and marketing, which outlines a common list of occurrences which might take place at the time when a customer involves with an advertisement (Gupta and Lehmann, 2005). By making use of this model the marketer and company can get a general idea of targeting a market efficiently. Shifting from level to level, one loses some amount of prospects (Cohen, 2005). Additionally, AIDA is regarded as being a historical framework, instead of signifying present thinking in the techniques of advertising efficiency. This approach recognizes cognitive phases a person experiences during the purchasing procedure for a service or product (Kotler and Keller, 2009). Moreover, it is no more an association purely amid the purchaser and the corporation, as social media channels has extended it to accomplishing the diverse objectives of AIDA through way of information added by other consumers through communities and social networks.

AIDA model stands for:

Awareness: This involves creating brand affiliation or awareness with the product or service (Gupta and Lehmann, 2005).
Interest: This involves building interest towards the advantages of the offered product or service, and adequate interest for encouraging the customer to begin researching further (Cohen, 2005).
Desire: This involves creating want for the product or service via an emotional link, highlighting brand personality (Cohen, 2005). This stages involves moving the buyer from 'liking' it situation to 'wanting it'.
Action: This involves moving the customer to interacting with the corporation and undertaking the subsequent step i.e. downloading brochure, making enquiries and others (Kotler and Keller, 2006).
Moving ahead, taking into consideration the provided advertisement of Mercedes S Class it can be clearly stated that it falls into the interest stage, There is no doubt in the fact that Mercedes has strong brand awareness and recognition in the market, thus it requires to build customers interest in its new launched Mercedes S Class model. The chief aim of the provided advertisement is to build interest towards the advantages of the offered product or service, and adequate interest for encouraging the customer to begin researching further. As a result, the advertisement falls into interest stage and would gradually move to desire and action stage.


Adcock, D., Halborg, A. and Ross, C., Marketing: Principles and practice (4th ed.). Xavier Thomas, 2001. Print.
Cohen, W. The Marketing Plan. John Wiley & Sons, Inc, 2005. Print.
Ferrell, O. C. and Hartline, M. Marketing Strategy. Thomson South-Western, 2005. Print.
Goldstein, D. and Lee, Y. The rise of right-time marketing. The Journal of Database Marketing & Customer Strategy Management, 12.3 (2005): 212–225. Print.
Gupta, S. and Lehmann, D. R. Managing Customers as Investments: The Strategic Value of Customers in the Long Run. Upper Saddle River, NJ: Pearson Education, 2005. Print.
Kerin, R. A. Marketing: The Core. McGaw-Hill Ryerson, 2012. Print.
Kotler, P. and Keller, K. What is geographic segmentation. Prentice Hall, 2006. Print.
Kotler, P. and Keller, K. A Framework for Marketing Management (4th ed.). Pearson Prentice Hall, 2009. Print.
Kotler, P. and Keller, K. Marketing Management (14th ed.). Pearson Education Limited, 2012. Print.
Kurtz, D. Contemporary Marketing Mason. OH: South-Western Cengage Learning, 2010. Print.

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