Tutorial 4 Section C

Segmentation Variables
Rolls Royce automobiles
 Countries
Geographic Segmentation Cities
• Geographic segmentation are dividing the market into different geographical units such as
nations, regions, states, countries, counties, cities, neighbourhoods or even climate. Rolls
Royce are localizing their products, advertising, promotion, and sales effort to fit the needs
of different countries.Record numbers of Rolls-Royce cars were sold in amongst others the
USA, UK, Canada, and Germany. Individual countries that achieved strong sales results
included Russia, Singapore, Japan, Australia, and Korea.

• In 2019, Rolls-Royce motor cars were sold in more than 50 countries worldwide through a
global network of 135 dealerships. Rolls-Royce has targets just developed and first world
countries for Marketing of Ghost.

• Rolls-Royce mainly markets their cars in cities where rich people lives. For example, New
York City. New York City is the world's only city with more than 100 billionaires.
 Age and life-cycle Income
Demographic Segmentation
Gender
• The target market for Rolls-Royce in terms of demographics has been classified according to
age, generation as well as occupation. It has also been classified according to the purpose with
which the product serves and also according to the different life stages their customers belong to.
Rolls-Royce provides its customers with different products depending on aspects such as age.

• The company classifies the different types of products based on the age and gender of their
customers. For example, Rolls-Royce can target women who are deep-pocketed by marketing its
products to its customers. This can be a very important aspect of marketing since Rolls-Royce
can maintain a very respectable and sustainable relationship with every Rolls-Royce buyer.

• In addition, the company can target their market according to their income status. For example,
customers who are interested in purchasing a Rolls-Royce automobile are sensitive in knowing
the benefits and advantages that come along with the exorbitant price. The Rolls-Royce targets
the segment of people who have a very high income and can afford a costly car like Ghost. Rolls
Royce only targets potential customers who have liquid assets in excess of $30 million.
 Lifestyle
Psychographic Segmentation Social Class
• Psychographic Segmentation involves the lifestyle of individual customers. It also entails the
customer’ s activities together with their corresponding interests and opinions. It classifies
individuals according to the way they spend their leisure.

• For example, Rolls-Royce targets a market that includes individuals who relish an extravagant
lifestyle according to their levels of income. These kinds of individuals are classified into two
main categories: old money or new money. Old money includes individuals who have the motive
of passing down the luxury products to their later generation. Whereas, new money entails
individuals who like to show off in order to gain recognition.

• Therefore, Rolls-Royce can seek market from such persons by targeting customers who are in the
following social group; entrepreneurs, those that are self-employed as well as those that have had
the privilege to inherit their family’ s large fortune. In addition, Rolls-Royce can target
individuals who own three, four, or even up to five homes and also those who have a net worth of
about $30 million.
 Usage Rate
Behavioural Segmentation Loyalty Status
• Behavioral segmentation separates customers into classes with regard to their knowledge, response,
their rate of usage, and also their readiness stage to purchase a certain product. It is renowned that
building market segments most at times commence with the behavior variables.

• For example, Rolls-Royce customers are characterized into the light, medium and heavy users.
Light users are those that have a Rolls-Royce automobile or product and rarely use them except
during important occasion. On the other hand, heavy users are those customers who utilize the
automobile or product to its full potential.

• Therefore, Rolls-Royce can use this as a marketing strategy by targeting customers who use its
Roll-Royce product either lightly or heavily. In addition, the loyalty status also prevails in
customers who use these products. They may include hardcore loyal and shifting loyal. Therefore,
the company can target such a market influencing them considerably.