strategies used in market segmentation Assignment Help

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Strategies used in market segmentation:

The strategies used in market segmentation include:

Developing different varieties of basic product for each segment; or

using the same product but with different promotion activities for each segment. Take for example a Toyota Corolla (1300cc) in Kenya. It can be marketed to three different market segments with three different sales appeals:-

Family car: The sales appeals could be a family car which is likely to be either medium or large with interior comfort and plenty of space.

Company car: The same may be promoted in a different market segments as a company car which is easy to drive, easy to service and easy to sell after new replacement cars have been bought etc.

Second car: The vehicle can also be sold to a third market segment of the rich people who can buy it as a second car. The sales appeal can show that it is a small ,economical car which is inexpensive to buy and easy to run.

In East Africa, Toyota Corolla ( a Japanese car) has fulfilled the above segments of the car market. It is

Possible for the car firms to develop particular models for particular markets. For example, Rolls Royce (Britain), BMW and Mercedes-benz (Germany) are luxury cars which appeal to a special market segment in Kenya and in other parts of the world.

In Kenya, East Africa Breweries usually sell at home mostly their brands of Tusker, Pilsner, Whitecap and Export Kubwa, while overseas they sell Premium Lager, Malt Lager, etc. However, Kenyans are free to buy the latter if they like.

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