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  • Published on: 14th September 2019
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Unit 3 part 2 task 1



Segmentation is identifying key sectors, understanding their needs and therefor serving them better. The most general categories to consider when segmenting a market are:

- Geographic: the location of your customers

- Psychographic: lifestyle or beliefs

- Socio-cultural: class

- Demographic: age, sex and so on.

The products I use for this task are:

1. McDonalds Happy Meal (B2C)

2. Mercedes Smart Car (B2C)

3. Weetabix (B2C)

4. iPod Shuffle (B2C)

5. Red Bull (B2C)

6. HP computer (B2B)


McDonalds Happy Meal

This product is targeted at parents, kids and students. The quality, low price, brand image, size and packaging influence people to purchase the product. The product is targeted at these consumers because parents and students would buy the product since it is cheap and affordable. Students have limited cash, they cannot spend all to meet their desires, parents as well tend to save their money to utilise their savings in the future when needed.

The reason to target these particular customers is that to keep them attracted to the business, which however does not bring good profit but however helps to maintain reasonable profit and builds up the good reputation of the business. Pictures and appealing texts are used to attract customers. McDonalds target people with low income thus; the organization aims to make the product cheap so that the people with low income will afford to buy it.

The market is segmented using demographic (age, occupation, income etc.). The significance of segmenting the customers is to understand the needs and wants of the customer using the marketing mix (5 P's). The segmentation used is demographic which includes age, income, occupation and family size etc. The business also uses pictures and texts to attract kids and young students.

Mercedes Smart Car

This product is targeted at singles or couples with no kids. The size of this car makes the car attractive for these consumers since due to its size it is easy to park and is comparatively cheaper than other cars within the company. Another benefit of this car is that it is fuel efficient and does not require purchaser to pay road tax, making the car cheaper and affordable in the long run, and hence encourages people to buy the product. The company targets this group because it is profitable and efficient to couples. Mercedes made a smart move by producing this car, as there is no car in the market like this. The safety, handling, light weight and extra ordinary mileage of 20+ kilometres in city is really attractive to its consumers. The safety of the car is really important as the car contains four air bags, Anti-lock breaking system (ABS).

The aim of manufacturing such car for the organization is to maximize their profits by making sure that the product satisfies the needs of the targeted consumers. This is accomplished by recording opinions of the targeted group to make the product successful. Photos, video's, posters and magazines help the company to target their specific customers.

The market is segmented using psychographic segments. Psychographic segments: lifestyle (family size, families with no children or teenagers etc.) The importance of segmenting the market is to meet the customer's requirement by producing the right product at the right price with the right promotion.


This product is targeted at kids, young adults and nuclear families. The popularity of this product is due to its health benefits and traditional taste. It is also popular within busy families who are busy with their jobs and have a lack of time to prepare traditional breakfast daily. The product is targeted at this group because these groups due to their lifestyles require a well-balanced diet. The packaging of the product usually attracts more children who through of the use of pester power encourage purchasing. The product is highly accessible since it is sold in all (retail that's mostly cloths shops) grocery shops who make it easier for customers to purchase it, for example, Tesco and Sainsbury.

The busy routine of the families encourages them to buy this product as well as of its taste and healthier option. The finishing of the product is attractive and the consumers can add their own toppings to develop their own taste, the packaging is also attractive to the kids which often include games and sometimes toys or stickers as well. Mosaic is used widely to target their customers and families in the society.

The market is segmented using lifestyle (psychographic); the importance of segmenting the customers is to understand the needs and want of the customer using the marketing mix. The bases of segmentation are demographic which includes age, family size, income, etc.

Apple iPod Shuffle

It is the smallest and most basic iPod, without a screen and is designed and marketed by Apple Inc. It features a full metal body with a unique design with an integrated belt that can be clipped anywhere to be used as a hands-free device. In its latest edition, it has storage of 2GB and can hold up to 480 songs. As there is no screen it is controlled by a voiceover.

This product is targeted at students, young adults and those with low income as well as people who are fond of music. They are targeted to attract those customers who are interested in an inexpensive, well-designed portable music player that holds good amount of music. In contemporary society, it's not just about listening to music; the significations have extended to aesthetics, trends and status. It is perceived by the customers as the status symbol, a fashion accessory and a matter of reputation.

iPod Shuffle is a recognised brand that is cheaper than many of its other products. Top brand product at low cost and accessibility, influences customers to purchase the product.

The organization segments the market by using demographic and psychographic as people who buy this product are fond of music and sometimes it is a matter of reputation. The company will know who their target group is. The base of segmentation is demographic and psychographic.

Red Bull GHMB

Red Bull is an energy drink sold by an Austrian company Red Bull GHMB created in 1987.

Red Bull target their products to young urban males ranging from 16-29 because they have a different lifestyle where they are more active and do more physical activities such as playing sports or working out at the gym. Furthermore, Red Bull also market their product to gamers who sometimes stay up to late, therefore they need an energy drink such as Red Bull to stay awake and to complete the game. Besides, Red Bull also target students who stay late at night to revise or complete work. Red Bull does not only target younger people but also older people in the age range of 25-45 because most of them work hard and don't have the energy to complete their daily tasks.

Red Bull target their markets in various ways. One of them is advertising their product on TV, radio, leaflets and billboards globally; therefore, it attracts more people to purchase it. The other way is to sponsor famous athletes such as the F1 drivers, they each have so many followers and this creates familiarization of the brand and products.  

The organization segments the market by using psychographic because it is based on people's lifestyle.

Business to Business (B2B)

Business-to-business describes trade dealings between businesses.


Hewlet Packard computers (HP) selects their business associates according to the size of the other party. Few examples include: Colleges, Police stations, hospitals, Call centres etc. This process is highly significant since it helps to develop an acceptable reputation in the business market. For instance, New Vic Sixth form will buy approximately 500 computers, to ensure further business HP offers huge discount or more years of warranty due to their contribution towards the business of HP, since they have not brought small number of computers but large sums that increase the overall profit of the company.

The value of the business is also important to identify the right segmentation. For example, if HP supplies its products to large, well-recognized businesses their demands and requirement would increase in the market. The company markets geographically because many of their buyers are from similar industry and hence its demand also increases. HP divides their market to private, voluntary and public organization to increase sales and build a successful reputation. These include, schools and colleges etc.; private organization such as Morrison, Iceland etc.; voluntary organizations such as the charity shops and health foundations. These organizations would have high demands for their products.

HP products have different variations; they perform this strategy to differentiate a product in one market segment from competitors\' products, as well as to its own products available in other market segments. This is highly beneficial to the company since it increases market shares; satisfy the requirements of different target market. HP's industrial segmentation is based on characteristics such as location, company type and buying characteristics. For example, Asda is a grocery shop which requires computers to record sales and other significant data advocating that segmentation tend to have a buying characteristic.

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