Segmentation and Target Market

Topics: Marketing, Psychographic, Automotive industry Pages: 8 (1499 words) Published: November 10, 2014


Segmentation and Target Market Paper
Jeannette Ramirez
August 21, 2014

Segmentation and Target Market Paper
Continental Tire the Americas, LLC is the Automotive Group of Continental AG- Innovations for the future of mobile automotive. Continental is one of the world’s leading automotive suppliers. As a provider of brake systems, systems and components for powertrains and chassis, instrumentation, infotainment solutions, vehicle electronics, tires, and technical elastomers, Continental contributes to enhanced driving safety and global climate protection. Continental is also an expert partner in networked automobile communication (Continental AG, 2014). Paper will outline how Continental Tires is segmented in the industry, its target markets, and the selection process for the target market. “Approaches to subdivision of a market or population into segments with defined similar characteristics. Five major segmentation strategies are (1) behavior segmentation, (2) benefit segmentation, (3) demographic segmentation, (4) geographic segmentation, and (5) psychographic segmentation” ("segmentation strategies," 2014). Market segmentation within the industry

Through its long-term marketing approach, Continental has become well-known as one of the leading sponsors in specialized football. One of its marketing strategy began in 1995, sponsorship of UFFA Champions League and UEFA EURO 2016. Growth in awareness of premium tire brand. As a partner to the automotive and commercial vehicle industry, it develops and produces innovative products and systems for a modern automotive future in which cars provide individual mobility and driving pleasure consistent with driving safety, environmental responsibility, and cost-efficiency (Continental AG, 2014). Continental is a fast growing automotive industry, and its brand is to make sure customers feel safe using their services and products. Continental watches competition around the world from other automobile chains; it must continually to change and adapt. Once the customer base is understood, communication is better used. Communication will translates into the market and to the customer base in the most effective way possible (Continental AG, 2014). Target market selection process

Continental Tires segmented its products by demographic, psychographic, geographic, and behavioral characteristics. Their products are targeted at men, families, and automobile dealers businesses with spirit of optimism, inventive spirit, racing success, internationalization, and automobile supplier. The growth rate projections come into play as these segments will generate massive profit margins as well as it will generate massive profit margins. “A target market is a group of customers towards which a business has decided to aim its marketing efforts and ultimately its merchandise. A well-defined target market is the first element to a marketing strategy” ("Target market," 2001-2014). Market segmentation is the division of one market into smaller market segments. The reason this is done is to make it easier to address the desires of smaller groups of customers. In turn allows Continental Tires to sell different products, according to each groups vehicle needs. Demographic characteristics

Continental has no set target area, and it is a nationwide business and it expanded to the Internet and locations near business and residents. Corporation is located in Germany and has headquarters in North Carolina serving both domestic and international consumers. The total targeted population is based on 49 countries and 300 locations and has five strong regions. Sales by market in 2013 were: 5% other countries, 19% in Asia, 22% in NAFTA, 24% in Germany, and 30% Europe (excluding Germany) (Continental AG, 2014).

Psychographic and behavior characteristics
According to "Education Portal" (2003-2014), “Psychographic segmentation is segmenting the market based on personality, motives and lifestyles”...

References: Business Dictonary.com. (2014). Retrieved from http://www.businessdictionary.com/definition/behavioral-segmentation.html
Continental AG. (2014). Retrieved from http://www.conti-online.com/www/automotive_de_en/general/about_us/about_us_en.html
Continental AG. (2014). Retrieved from http://www.continental-tires.com/www/tires_de_en/themes/news/archive_en/2013conti_en/pr_2013_05_29_soccer_sponsoring_en.html
Continental AG. (2014). Retrieved from http://www.continental-corporation.com/www/pressportal_com_en/themes/press_releases/3_automotive_group/powertrain/press_releases/pr_2014_06_05_kaluga_en.html
Continental AG. (2014). Retrieved from http://www.continental-corporation.com/www/csr_com_en/
Education Portal. (2003-2014). Retrieved from http://education-portal.com/academy/lesson/market-segmentation-geographic-demographic-psychographic-more.html#lesson
Segmentation strategies. (2014). In Business Dictonary.com. Retrieved from http://www.businessdictionary.com/definition/segmentation-strategies.html
Target market. (2001-2014). In Definitions. Retrieved from http://www.definitions.net/definition/target%20market
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