Subject: Best Segmentation Method for Mini Cooper Automotive
I write this to propose the best method of segmentation for Mini Cooper Automotive. Market segmentation is critical for any business because it helps them define and better understand their target audience and ideal customers. Johansson (2017) informs us that through a proper understanding of their market segment, companies gain a better understanding of their customer’s needs; hence they can tailor their marketing campaigns to that segment that is more likely to purchase their products.
The best segmentation for Mini Cooper Automotive is firmographic segmentation. I find this segmentation method suitable because it will guide the company through its marketing, advertising, and sales by providing deeper business insights, which would later result in effective campaign strategies (Reynolds, 2018). We also selected firmographic segmentation to help grow the business to business portion of the Mini Cooper market. I find this type of segmentation attractive because instead of concentrating much on the customers, the segmentation will require the management of Mini Cooper to concentrate on the factors of business such as its location, the number of employees, and the company size.
The method of targeting that I am recommending for the company is concentrated targeting. I find this method of targeting appropriate because the Mini Cooper market is narrowly defined. The company is producing cars that are meant to serve one type of demographics. Concentrated targeting will thus enable the company to be safe on resources and increase their revenue. Even though concentrated targeting may attract competitors, Mini Cooper Automotive will gain profits if it satisfies its focus customers. The company’s new target market will be 20-30 years old, who are also affluent because of the higher price tags of cars. The selected segment should know that the cars sold by Mini Cooper Automotive are the best choice for quality and efficiency; hence they should respond to this value proposition.
I fully believe that this method of segmentation will meet customer needs and those of the company.