BMW: The Four Types Of Market Segmentation

Market segmentation is the defined as the splitting the buyers into the groups within the same needs and wants. It benefits the companies to define their target market and it attracts the customers that the company wishes to make the best use of their products. It is a very useful technique which reduces the risk in deciding that which market should be targeted.
The purpose of the market segmentation is to earn the large amount of profit and it also ensures that the company has targeted the right market. It also becomes easy to understand the customer and the needs and wants of the buyers as well.
The market segmentation is divided into the following four approaches by which the companies tends to attract or define their target market. The

A company that adopts a concentration strategy gains an advantage by being able to concentrate and on analyzing the wants and needs of one market or segment.
The demand of the market can be a major disadvantage of this strategy. If the demand is low of the product, the financial position of a company might fall as well. If it is totally opposite in that case, i.e. the demand is high of the product then the position of the company will stay strong. Sometimes it is impossible to serve all the market segments by a single product in concentration strategy. It is important to create a loyalty of the product among the potential

BMW is an emblem of nobility. BMW has been the favorite of the high income people. it is recognized as the status symbol globally. It’s a luxury car for the riches.
So to say, BMW targets the extreme rich people who possess a royal, lavish and famous status and would like to have a luxurious, calm, speedy drive and those who want a personalized car to feel the taste of uniqueness.
The concentration strategy depends on four major segmentation approaches as discussed above. The geographic segmentation of BMW is the countries or the cities in which the rich people lives. Since BMW targets niche market so it has place its cars in countries or cities where people can buy it. BMW places their cars in the top notch areas for people who can afford it.
The demographic segmentation is divided into the income and occupation of the market that BMW targets to. BMW targets to the people who have a very high income and can afford a costly car. This is how BMW differentiates itself within the other car companies. They target segments that have a reputation and fame with his occupation. It is understood that any person would buy a BMW car that have a lot of money to spend on a