Answer to Question #261685 in Marketing for chiku

Question

b. In your opinion, which segmentation strategy is adopted by Kia Motors? (5 Marks)

Answer 1

Discussion

Market segmentation is a marketing strategy in which select groups of consumers are identified so that certain products or product lines can be presented to them in a way that appeals to their interests. A market segmentation strategy organizes customers or businesses based along demographic, geographic, behavioral, or psychographic lines or a combination of them. The importance of market segmentation is that it makes it easier to focus marketing efforts and resources on reaching the most valuable audiences and achieving business goals. Market segmentation also allows companies to get to know their customers, identify what is needed in their market segment, and determine how they can best meet those needs with their product or service. This helps them design and execute better marketing strategies from top to bottom.

Kia mostly targets demographic. Demographic are consumers in their 30s, young adults who love sports, physically active, competitive, and interested in new technology especially social platforms, that is they rely on the latest technology and multi-screening to get ahead. Demographic segmentation is one of the most popular and commonly used types of market segmentation. It refers to statistical data about a group of people. For example, age, gender, income, location, family situation, annual income, education, ethnicity etc. Because demographic information is statistical and factual, it is usually relatively easy to uncover using various sites for market research. Demographic segmentation allows businesses to be more strategic and specific with marketing. A one-fit-all marketing strategy will likely not appeal to every member of the business target market because different individuals have different preferences. By breaking the target market into individual categories defined by demographics, organizations can come up with precise marketing campaigns for each group. This helps them to channel resources effectively and boost return on marketing investments. 

Demographic segmentation also helps organizations to categorize their widely varied customer base into smaller groups of individuals and appeal to their specific preferences. With demographic segmentation, organizations can create personalized brand narratives that easily connect with specific segments of the target market to advertise and sell their product or service. Consumers easily identify with personalized brand narratives and are eager to patronize organizations that reflect this. 

Reference

Hunt, S. D., & Arnett, D. B. (2004). Market segmentation strategy, competitive advantage, and public policy: Grounding segmentation strategy in resource-advantage theory. Australasian Marketing Journal (AMJ), 12(1), 7-25.