The Concept of Segmentation & Marketing Environment in Porsche Automobile - Term Paper Example

THE CONCEPT OF SEGMENTATION & MARKETING ENVIRONMENT IN PORSCHE AUTOMOBILE By Location Introduction Porsche isa luxury automobile company established in 1931. Market segmentation is the process of subdividing a particular market into different subsections for different customers. Each of the subsets in market segmentation may be chosen to be able to reach a distinct target market by the company. Porsche Company has several ranges of high-end vehicles for their different customer market. The process of segmentation starts with the basis of it all, the product.

Buyers’ behaviour differs in terms of usage, intentions and loyalty to Porsche.DiscussionCitizens in developing countries have experienced a rapid growth in their income thus in the purchase of luxury vehicles. Porsche is one of the companies that have increased its number of customers over the years (Kumar 2004). Competition from other companies with similar market base has made Porsche come up with new and innovative designs for their automobiles. In order to maximize their profit, Porsche has different kinds of models that include; consumer models market.

Porsche meets the needs of the customers, from the average income one to the wealthy. If one of the models or series does not do well in the market, it will not have a large effect on the organization since the other series will not be affected (Ighoteguonor 2013). The price of the automobile has a range from $50,000 to $845,000 depending on the kind of model being purchased. The interesting fact is that 70% of the cars ever manufactured by Porsche are still on the road today. The organization has a plan of increasing the sale of the vehicles to 200,000 per annum by the year 2018.

The attribution is from the excellent relationship between employees and the partners as well as the customers (Wedel 2000). It results in increasing the customers’ enthusiasm towards Porsche products.Porsche used the four marketing mix to market and increase their sales all over the world; product, promotion, place and price (Kotler & Armstrong 2014). Their sports cars are high-end automobiles of high quality and high performance. Customers of Elite status purchase the products. High-quality products equal high prices from the company.

The organization has resulted in consumer focused advertising in televisions, print media and direct for promotion of their products to the customers. The slogan is “Engineered for Magic Every day.” The products are different in each location sold to fit the customers’ needs (Zoeller 2014). For example, North America market embraces the American expectations and their values. The same applies to all the other markets around the world, including Europe and Asia. The vehicles manufactured by the company are high-performance vehicles with great stability at great speed.

The market for Porsche automobiles increases by an average of 5% globally with their largest market being North America and China. The European market remains challenging for the product, but it also grows by an average of 2%. The sense of driving a Porsche as a symbol of wealth has made Porsche sell most of its expensive vehicles.ConclusionThe macro environmental forces are favourable in manufacturing of the company’s automobile. The high-end luxury cars produced by Porsche are the selling point of the products.

Marketing strategies embraced by the company have led to a massive sale of their vehicles and thus to increase in annual profit values.ReferencesIghoteguonor, G, 2013, The Effect of Market Segmentation on Global Marketing: A Conceptual Overview. Universal Journal of Management and Social Sciences 3 (1)Kotler, P. & Armstrong, G 2014, Principals of Marketing, Pearson Publishers, London.Kumar, A 2004, Consumer Behaviour, Atlantic Publishers, Canada.Wedel, M 2000, Market Segmentation: Conceptual and Methodological Foundations, Springer, New York.

Zoeller, S 2014, Target Market Segment Strategy: Porsche. Available from: http://www.stephenzoeller.com [5 December 2014].