Monday, April 4, 2011

BUS 3500 Week 5

This week we learned about market segmentation. Market segmentation by definition is the process of dividing a market into meaningful, relatively similar and identifiable segments or groups. 

Any successful company uses market segmentation as part of their marketing strategy. In my opinion, this is why Toyota created the Scion brand. They are targeting a particular market segment. I, however am not part of that segment, I find Scion's in general hideous and an embarrassment to Toyota. Nevertheless, market segmentation allows Toyota to be more successful. With brands such as Lexus, Toyota and Scion it can reach a variety of target markets.

Market segmentation is quite possibly one of the most important concepts that I can learn from. Any business that I will work for will use market segmentation to some degree.

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