The concepts of market segmentation are fundamental to the success of firms’ marketing efforts. Kotler and Armstrong (2004) provide a useful definition: “Dividing a market into distinct groups with distinct needs, characteristics, or behavior who might require separate products or marketing mixes” (239). Segmentation is important because firms cannot appeal to all customers at once, especially not with the same offering. Rather, firms need to design products and services that fit with particular groups of individuals. Firms can segment their market in a number of ways, including geographical, demographic, psychographic and behavioral segmentation.
The Consumer’s goal is to obtain goods and services that meet their needs and wants. The Psychographic segmentation is also referred to as ‘lifestyle analysis’ and considers consumers activities, interest and opinions. This is used to help structure marketing messages by understanding lifestyle preferences.
The market segmentation which red Bull has adopted is aimed at men and women who are aged between 16 -29 years old. Red Bull is a popular drink amongst men in particular, with its largest consumer’s consisting of athletes, students, and night-clubbers in need of a late night lift. However, the brand is marketed to ‘opinion leaders and hard-working people with active lifestyles’, as the company’s website claims. As mentions this co insides with the “lifestyle analysis” and considers the consumers activities, interests and opinions. Marketers also use market segmentation research to identify the most appropriate media to place advertisements.
Most of Red bull’s promotional activities revolve around sports, and in particular, ‘extreme sports’ which was sourced from the founder, Dietrich Mateschitz, who had a deep interest in snowboarding and skateboarding.
Red Bull gives...