Marketing Mix and Target Market

To understand what consumers want and need you need to do research. For every company, understanding your target market is key in developing the appropriate product and campaign.


Target marketing is done primarily through segmentation which helps firms tailor the marketing mix, therefore better satisfying customer needs. The four main segmentation groups are:

• Geographic segmentation - region, climate, state
• Demographic segmentation - age, gender, education, income, occupation, family status
• Psychographic segmentation - values, attitude, lifestyle
• Behavioural segmentation - usage rate, brand loyalty, benefits sought

So what is VW Tiguan's Target Market?

20 - 34 year old male and females living in metropolitan areas who earn average to high incomes. Are well educated, live a comfortable lifestyle where image and brand loyalty is important. 

VW are currently positioned between the economical and luxury segment attracting customers who enjoy a trendy but low profile car and with Tiguan being rated Australia's best handling vehicle in the compact SUV category, even out doing some sports cars, for those people on the move needing benefits of style and efficiency in their fast paced lives, the Tiguan is the leading choice.

So how do Companies go about reaching their target market? it is done through the Marketing Mix or what is know as the 4 or 7P's. But today we are focusing on the 4: Product, Price, Place and Promotion. These marketing mix concepts create awareness, customer loyalty, competitive advantage and value.

Here is the breakdown for VW Tiguan's Marketing Mix:

Product: Volkswagen Tiguan Compact SUV (includes-brand name, safety, quality, style, packaging, warranty, accessories and service)

Price: From $32,990 (includes- pricing strategy, suggested retail and wholesale prices, discounts and flexibility)

Place: Internationally Sold. In Australia Tiguan is distributed to manufacturers, wholesalers, retailers and consumers and can be public or privately sold. There are hundreds throughout Australia as well as service and parts distributors. 

Promotion: IMC Tools = Advertising, Personal Selling, Sales Promotion, Public Relations, Interactive Marketing and Direct Marketing. Whilst this particular campaign only focuses on advertising through the television ad, internet(youtube), personal selling at retailers, sales promotion through test drives and so forth. Volkswagen as a whole uses all IMC tools to help maintain, promote and increase brand loyalty, positioning and profit through endorsements/sponsorship such as Sydney Swans, The Wiggles and the City of Sydney's Chinese New Year Celebration, website interaction and information, radio, print and out of home advertising, pulsing throughout the year.

The purpose of the marketing mix and primarily IMC tools, is to create the appropriate dialogue to consumers so your message is heard amongst the noise, create competitive advantage, boost sales and profit, help consumers through the various stages of the buying process as well as keep the message consistent and credible. 

How is this monitored and whether VW is successful at achieving this will be later discussed but in a highly competitive market, they are doing ok.