Reference no: EM133892899

Question

Market segmentation is important to strategy implementation as it it helps with marketing strategy which gives a company a a marketing objective. (European Journal of Business and Management, 2011)

A few reasons why marketing segmentation is important is because it places consumer is groups based on needs, lifestyles, and through segment acid test it tests it attractiveness of the position.

"For this market is to divide into groups of consumers or segments with distinct needs and wants. This strategy of dividing the market in homogenous group is known as segmentation. Even companies, who have mass marketing phenomena, are now adopting this new world's strategy i.e. segmentation. The purpose of segmentation is the concentration of marketing energy and force on subdividing to gain a competitive advantage within the segment" (European Journal of Business and Management, 2011, pg. 1).

Market segmentation in the auto industry can be based on similar interest, is it a new car, classic, or rare. These each have different needs when it comes to marketing attractiveness to different segments of people, lifestyle, and interest.