Marketsegmentation is the division of customers based on their similarityof needs and wants. By dividing the international markets, companiescan efficiently allocate their limited resources in a manner thatbeats the competition and enhances customer satisfaction (Surhone etal. 2010, p.32).

First,the separation enables a business to focus on the particular needs ofits patrons. The ability to focus allows it to address the specificrequirements of the customers, which in turn improves thesatisfaction of clients. The contentment increases the credibility ofa company’s products to the customers, increases sales, andconsequently, boosts the returns of a business. For example, Toyotahas benefited from increased sales through focusing on the specificneeds of international consumers. The corporation works on theprinciple of “theright car at the right place.”For instance, thePrius brand targets environmental conscious consumers while the Lexustargets the sophisticated, classy and stylish end users (Greimel2014).

Second,subdivision of international markets increases the competitiveness ofthe company products. The ability to identify the specific needs ofthe customers specialization intended to meet the clients’ needs. Consequently, the organization can save on its resources by focusingon target customer as compared to producing generic products.Specialization results in the creation of robust commodities that canbeat the competition. For example, Coca-cola uses a global marketsegmentation in developing its products, as well as, in designing itsmarketing strategies. Through a mix of niche and targetingstrategies, the company can enhance its competitiveness and boost thesales. Furthermore, the organization’s products are also among themost popular brands worldwide. For instance, the diet coke wasdesigned for the health conscious clients (Bhasin n.d).

Thethird key advantage of international market segmentation is theability to expand the company’s market. Geographical segmentationenables the organization to address the differing needs of customersin a given locality. From the perspective, the market is analyzed interms of factors such as age, gender, family size and life cycle,income, occupation, education, social class, lifestyle andpersonality (Schiffman 2011, p.71).

Behavioralcharacteristics such as occasions, benefits, user rates, loyaltystatus and attitude towards a product inform the need to relocateinto a new market. Companies dealing in automobiles, clothing,cosmetics, travel and financial services differentiate their globalmarkets based on income, age, lifestyle and gender (Surhone et al.2010, p.32)

Forexample, Toyota recognized the rise of incomes in emerging marketstherefore, it designed an entry tactic for exploiting them. Thegrowth of earnings led to the emergence of middle-income earners withvarying needs to buy automobiles. The company entered and managed todominate the African market despite the existence of othercompetitors such as Volkswagen, Nissan, Ford and BMW. The key successfactor for the Toyota Company is the fact that it has something foreveryone. By identifying the quality, location and price sensitivequalities of the middle-income earners, the corporation introducedthe low-cost Toyota Corollas line for the mid to low income earnersand the SUV’s for the high-income earners (McDonald &amp Dunbar2005, p.68).

Thesegmentation of the international markets enables a business to winthe loyalty of its customers. Client retention augments the returningcustomers that, in turn, spur the growth of sales. Besides, it servesas a marketing strategy as satisfied clients refer their friends. Theability to win customer loyalty has contributed to the current growthin the sale of Toyota cars. The strategy has seen the growth of thelogo, “thecar ahead of you is always a Toyota,”especially after the increase in sales from the emerging markets(Wedel &amp Kamakura 2002, p.45).


Bhasin,H. (n.d).“ 6 advantages of segmentation .” Marketing91.[Online]. Available:[Accessed:10-June-2016]

Bhasin,H. (n.d).“Marketing strategy of Cocacola- Coca cola marketingstrategy.” Marketing91.[Online]. Available:[Accessed:10-June-2016]

Greimel,H. (2014, April 14). “Into Africa: Toyota taps last emergingmarket.” AutomotiveNews.[Online]. Available:[Accessed:10-June-2016]

McDonald,M., &amp Dunbar, I. (2005).&nbspMarketsegmentation: How to do it, how to profit from it.Amsterdam: Elsevier/Butterworth-Heinemann.

Schiffman,L. G. (2011).&nbspConsumerbehaviour: Market segmentation.Frenchs Forest, N.S.W.: Pearson Australia.

Surhone,L. M., Timpledon, M. T., &amp Marseken, S. F. (2010).&nbspMarketsegmentation: Economics, marketing, customer relationship management,industrial market segmentation, marketing effectiveness, databasemarketing.Beau Bassin, Mauritius: Betascript Publishing.

Wedel,M., &amp Kamakura, W. (2002).&nbspMarketsegmentation.Amsterdam: North-Holland.