There are many ways to segment markets, but the most effective approach for Tesla would be to use a concentrated segmentation strategy. Tesla should not try to appeal to everyone by engaging in a mass marketing campaign. A concentrated segmentation strategy will allow Tesla to employ its limited resources more efficiently. Tesla needs to study different segmentation methods to better understand the profile of the customers in each segment.
Tesla geographic segmentation
Studying and differentiating the segments will allow Tesla to look at the consumer similarities within a segment and dissimilarities across segments.
Geographic segmentation is used when a product satisfies a customer’s want or need that is specific to a region. Tesla can use a geographic segmentation because gas prices vary by region and Tesla can focus its marketing to those consumers that live in areas with high has prices. For example, Tesla can market to Europe because most European countries have high gas prices and green-friendly governments and policies.
Tesla demographic segmentation
With the use of geographic segmentation, Tesla can rule out countries like Venezuela, where gas only costs fifteen cents a gallon. Demographic segmentation is used when a company wants to differentiate its customers by easily measured characteristics like gender, age, income and education.
With the use of demographic segmentation, Tesla can employ its resources only to people that can afford it. For example, Tesla can market the Roadster S to males that are in their late thirties, and have high income.Psychographic segmentation is used when a survey is conducted and a company wants to group customers according to their lifestyle. Tesla can look at people’s activities and see if they are satisfied with commuting in their current cars or if they are looking for alternative cars. Tesla can segment by people’s interests, they can see how many and what kind of people are interested in cutting their traveling costs to a few cents.
Tesla can find out opinions on the introduction of environmentally friendly cars.They can find out peoples attitudes towards the economy and environment. Benefit segmentation is used when a company wants to separate consumers on the basis of the benefits they get from the product. Tesla can group customers that want the Roadster S for its extremely low operating costs. Tesla can also group the customers that want the car for its performance capabilities. The Tesla Roadster S is perfect for customers that want the power of a sports car, coupled with low operating cost and environmentally friendly driving.
Tesla can use every one of these segmentation methods, but each has its distinctive advantages and disadvantages. Therefore, Tesla should use a combination of these segmentation methods. By first using a geographic and a demographic segmentation, Tesla can narrow down exactly where it wants to focus its resources. Then use the psychographic or benefit segmentation to tailor the product to the customers wants and needs.