Chapter 8 :Segmenting and Target Markets

Lexus has its own market that has over 7 cars to offer and each one of them sell very well individually. A market refers to people or organizations with needs or wants and the ability and willingness to buy. When we look for a car we always have specific needs and wants from our car, for example ; we want a specific color, some may want different modified interior, some may want to add additional technology features. Thats exactly what Lexus focuses, they want to fulfil your needs and wants. Every car of theirs comes in 4 different packages, some include everything that a customer can ask for and obviously the price increases with that and some may just want the basic. The best part about Lexus is that even their most basic model of each car has many features that all other companies include only in their highest and most expensive package. A market segment is a subgroup of people or organizations sharing one or more characeristics that cuase them to have a similar product needs. Market segmentation divides into 4 different groups

:Geographic 

:Demographic
:Psychographic
:Behavioral

By having market segmentation its more easier for the seller to understand their cusotmers needs and wants. Geographic relates to countries,nations, states, regions, cities, neighbourhoods. Now that tells something to Lexus, not everyone is preffered to have a Lexus based on where their living. Demographic is about age, gender, sex, family, education, income thats lexus's biggest factor to look at. Not every car is suited for every driver. Not every car is preffered by males/females. Psycographic is about lifestyle, social class, personality. Like Mercedes Benz, BMW, Lexus doesnt have a ego issue based on whos driving their car they've made their car suited for everyone. Behavioural mostly targets user status, usage rate, benefits, occasions, loyalty and attitude. 

Not every product is designed for everybody out there sometimes only certain induviduals and sometimes nobody, this is called target market. Target marketing means that a specific prodcut has been made for specific type of people. The lexus IS250 is not made for everyone not everyone will enjoy the drive like some others do. The is250 was orignally deisnged for teens - into mid twenties, primarily because this was the first Luxury sports car that anyone had to offer back in 2006 and now its killing the charts by almost all the teens purchasing or leasing this specific model.