Market Segmentation Sample

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An article in The Weekend Australian on 1-2 March 2008 shows how Nissan apply the marketing concept of (i) market research, (ii) market segmentation, and (iii) market targeting in their new model – Pivo2.

Nissan finds that the domestic sales have dropped 31 per cent even their sales are expanding in overseas market. So, Nissan had done some research the aims to analyze how can increase their domestic sales. The research was conducted in 2007 had interview 1700 young Japanese, and the result of research had indicated that there are only 25 per cent interviewee want to have a car in their 20s. The young people in Japan look to car with indifference since grown up with the internet, they no longer depend on a car for shopping and entertainment etc, so they prefer to spend the money in other ways such as iPods, PCs etc. Nissan obtain these primary data – information collected for the current research purpose (See Kotler 2007 Pg. 216). Therefore, Nissan had introduced a new model – Pivo2 to increase their domestic sales.

Nissan was trying to segment the market. This is called market segmentation. Market segmentation is defined as “ the process of dividing a market into distinct group of buyers who might require separate products or marketing mixes, and also classifying customers into groups with different needs, characteristics or behaviour” (See Kotler 2007 Pg. 344). As part of this approach, Nissan had dividing the market into groups based on the demographic variables such as age and gender. The buyer needs and wants change with age and gender, so Nissan should offer different model for different group. The article also illustrates the concept of market targeting, which is a process that evaluates each market segment’s attractiveness and selecting one or more of the market segments to enter (See Kotler 2007 Pg. 359). Nissan was targeted on younger people and women. Against to the target, Nissan had designed a new model – Pivo2 for...
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