Hermes watches-segmentation targeting and positioning Research Paper

Hermes watches-segmentation targeting and positioning - Research Paper Example Markets are made up of numerous segments. Consumers portray different preference, characteristics and buying behaviour. The varying mindset of consumers is determined by many market-based factors. Marketers refer to the heterogeneous market characterised by customer behaviour to divide markets into segments; a process referred to as market segmentation. Therefore, market segmentation can be defined as the division of market into homogenous groups of consumers, in reference to the variables reflected in the marketing mix (West, Ford and Ibrahim, 2006). Marketing strategies are determined by product, price, place, promotion, people, processes and physical evidence. The difference between customers belonging to different market segments is minute. Individual segments should be evaluated through reference to a targeted marketing mix. Market segmentation helps in taking care of the homogenous groups of buyers. The key variables used in segmenting the watch markets include demographic segm entation, geographic segmentation, psychological segmentation, and psychographic segmentation (Dibb and Simkin, 2001). Geographic segmentation involves dividing the market into geographic units such as neighbourhoods, cities, regions and counties. Geographical segmentation factor is crucial in the marketing of the luxurious Hermes watches as customers are located in distant locations. The most strategic location for the marketing stalls for Hermes watches is urban areas. The immense population density creates the required marketing potential. Geographical segmentation of customers will involve the consideration of factors such as region i.e. district, state and city; size of the area; population density that considers various segments depending on population size e.g. urban versus rural neighbourhoods; and climate that considers the weather of the segment. Involves evaluation of factors such as age e.g. the watches have been designed to