Discovering Marketing (MKTG1000) - Brand Segmentation Assignment

This assignment analyzes the market segmentation of the Tag Heuer Aquaracer Calibre 5 watch, focusing on demographic, psychographic, and behavioral segmentation strategies. The analysis begins with defining market segmentation and its importance, then delves into the application of geographic, demographic, psychographic, and behavioral bases. The assignment examines how the brand targets male customers through advertising, using celebrity endorsements and masculine imagery to appeal to a specific demographic with high income. It explores psychographic segmentation by highlighting the watch's appeal to sports enthusiasts, particularly those involved in water sports, as evidenced by the watch's features and associated marketing messages. Furthermore, the assignment discusses behavioral segmentation, focusing on how the watch's features and brand messaging, such as its durability, influence consumer purchasing behavior and brand perception. Finally, the assignment concludes with a discussion of brand positioning, emphasizing how the marketing mix shapes consumer perceptions of the brand's value, quality, and target customer base, as well as its competitive standing in the market. The assignment includes references to relevant marketing literature.

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MKTG1000 Discovering marketing question one
Brand: Tag Heuer Aquaracer Calibre 5 watch
Market segmentation refers to the process of dividing the heterogeneous markets of the different
customers into smaller similar and homogeneous small groups of the customers. The purpose of

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these small groups’ subdivisions of customers through segmentation is to enhance similar
preferences, tastes and needs. This is one of the most important processes that marketers need to
do for better organization of the market. This discussion will focus on various types of the bases
of segmentation1. A market can be further subdivided into four different based. These include
geographic, psychographic, demographic and behavioral segmentation. The segmentation is
used to concentrate the energy and force of the subgroup customers to obtain a high level of
competitive advantage to the target customers2.
In this analysis, it will be noted that the market forces if the ones for the important
factors that affect the economy. For instance, the price of a certain commodity, the demand of
the same commodity and the commodity availability determine how the economy for the
business selling the commodity would be. To achieve the high levels of the market force
concentration, the marketers should understand the wants and needs of the customers or the
target market. In the process of the marketers analyzing the needs data and information collected
he/she need to come up with the personalized kind of goods and services for the target customers
in the market space. The segmentation of the brands in the market determines the potential
customers of the same brand, the price that the brand would sell, the demand value of the brand,
and how competitive the brand would be in the market. The marketers who do not make use of
the segmentation bases in the advertisements may face challenges in the competition aspect
1 Hassan, Salah S., and Stephen H. Craft. "Linking global market segmentation decisions with
strategic positioning options. 81-89.
2 Day, Marc, Gregory M. Magnan, and Morten Munkgaard Moeller. "Evaluating the bases of
supplier segmentation 639.

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because many of the customers would like to get to know more about the brand and this can be
easily done by applying all the bases of segmentation. This would be more illustrated in question
one discussed below.
In this question I will deal with the print type of the advertisements and the chosen brand
if the Tag Heuer Aquaracer Calibre 5 watches. This is a well-known type of the watch and
mostly it’s advertised among other pictorials used like hands wearing the watch. This type of
segmentation bases involves the segmentation of the selling market regarding several
demographic factors. These include age, income level, gender, ethnicity, race and level of
education3. Some of the above-mentioned factors can be brought together depending on the
specification of the brand dealt with especially in constructing the market segment. In the
advertisement of the watch, those marketing the demographic apply to gender4. Based on the
brand advert shown above, the marketers used the male footballer of Manchester united as their
background of the advert. This is one of the best segmentation bases to be used because the
watch was compared with the stronger and professional team. This is one of the best ways used
by marketers to demonstrate how the watch is power and professional. The background of the
advert was the male footballer and this is demographically showing that the brand was targeting
the male gender customers. Moreover, the use of the dark-colored background represented by the
3 Nachum, Lilach. "The choice of variables for segmentation of the international market. 45
4 Baalbaki, Imad B., and Naresh K. Malhotra. "Marketing management bases for international
market segmentation 19.

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grey and black colors shows the masculinity kind of gender. The fact is; males need no attractive
and overrated colours and therefore, the background says it all.
This is one way of showing that the demographic bases are applied in the brad to show
that the watch is basically for male customers. Furthermore, the use of well-known footballers
and celebrity indicates that the brand is highly luxurious because it shows that the high ranked
people use the watch as their mark of identity. This is one way of using the demographics
segmentation bases to show that the brand is targeting the male customers of a high level of
income. Moreover, the other marketing segmentation applied in this brand is the psychographic
segmentation base. This type of segmentation involves division of the consumers or customers
into various groups based on their personalities, lifestyles, beliefs and values5. Focusing on the
Tag Heuer Aquaracer Calibre 5 watch brand, it indented to be bought by the sport's customers.
This has psychographically shown by the use of celebrities in the field of football in the
advertisement. Football celebrities are used as the ambassadors of the brand. Besides, by the use
of the psychographic bases, it can be noted that the brand is as well as targeting water sports
especially those who love professional diving. This more illustrated by checking the inner
section of the watch indicating the 300m/1000 F’’6. This is a clear indication that watch can be
worn in the swimming water up to even depth of three hundred meters without even destroying
the watch. Furthermore, the tag of the watch has a hashtag that suggests that the Tag Heuer
5 Storbacka, Kaj. "Segmentation based on customer profitability 492.
6 Hassan, Salah S., Stephen Craft, and Wael Kortam. "Understanding the new bases for global
market segmentation.

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Aquaracer Calibre 5 watch brand does not crack under the pressure. Psychographic indicates that
they can withstand very high pressure in the water of deeper depth. It is as well shown that the
world Aquaracer on the Tag Heuer Aquaracer Calibre 5 watch brand indicates that the brand is
effective for those people who love water sports.
The last but not least segmentation base used in this brand by the marketers is the
behavioral segmentation. This is the type of segmentation in which the marketer divides the
market into sub smaller groups of the customers based on their consuming behaviors of the
brand. Considering the hashtag “#doesn’t crack under pressure” it shows that the watch has the
advantage of being high quality and that is why the customers have the tendency of buying it7.
The hashtag indicates that the watch is the pressure resistance and therefore this would increase
the behavioral state of customers of buying the watch. The behavioral segmentation of giving
the Tag Heuer Aquaracer Calibre 5 watch brand different hashtags indicates that the brand is
durable and worth the amount sold because it will offer the customers a lifetime service. This
type of segmentation base shows how beneficial the brand is to potential customers.
It has shown that the Tag Heuer Aquaracer Calibre 5 is not just like any other ordinary watch. It
has so many advantages and benefits to the customers. The ordinary things performed by the
other watches are extremely done by this brand. This means the watch can perform other tasks
that other watches are unable to do. For instance, ordinary watches can not stand high pressure.
Tag Heuer Aquaracer Calibre 5 can do so even to a depth of 300 meters in the water where
pressure is so high. Moreover, this means the watch has more advantages of being waterproof.
This kind of behavioral segmentation of the watch as opposed to the other brands of the watches
7 Wedel, Michel, and Wagner A. Kamakura. Market segmentation

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makes Tag Heuer Aquaracer Calibre 5 so competitive and the same time its price is so high. This
type of segmentation base determines whether the brand would be of high value in terms of the
price and demand by the customers. The fact about this segmentation base concerning the Tag
Heuer Aquaracer Calibre 5 is that it differentiates the brand from other types of watches sold in
the market.
Finally, the positioning is the process in which the precise marketing mix is developed to
influence the perception of the potential customers in particular brands, organizations or
products8. The brand or the product can be positioned based on the location in which the
consumers can reach the brand. This can be shown by the attribute of quality, price, function,
classic, users, consumer's emotions or even competitive value of the brand. For instance,
considering the Tag Heuer Aquaracer Calibre 5 illustrated above, the positioning of watches has
shown that the price of the brand would be high, for classic people, highly competitive watch
among other variables.
Therefore the positioning of the brand is based on how the product or brand is illustrated in the
advertisement. The positioning of the brand determines the level at which it would be purchased
by the customers. Some brands have lower quality and therefore this means their position level in
the marketing zone would be also lower. It is a clear indication that the price of the same
product will be lower and the number of targeted customers will be of low class. Taking an
example of the Tag Heuer Aquaracer Calibre 5 brand, the positioning is high as the watch comes
with many advantages and the customers. The target customers say it all about the level of the
8 Mariorty, Rowland T., and David J. Reibstein. "Benefit segmentation in industrial markets.
486.

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positioning of the brand. The Manchester united footballer shown in the brand advert is wealth
and high ranked. This means that the brand is positioned at high-class customers who can afford
an expensive brand.

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Bibliographies
Baalbaki, Imad B., and Naresh K. Malhotra. "Marketing management bases for international
market segmentation: an alternate look at the standardization/customization
debate." International Marketing Review 10, no. 1 (2013): 19.
Day, Marc, Gregory M. Magnan, and Morten Munkgaard Moeller. "Evaluating the bases of
supplier segmentation: A review and taxonomy." Industrial Marketing Management 39,
no. 4 (2010): 625-639.
Hassan, Salah S., and Stephen H. Craft. "Linking global market segmentation decisions with
strategic positioning options." Journal of Consumer Marketing 22, no. 2 (2015): 81-89.
Hassan, Salah S., Stephen Craft, and Wael Kortam. "Understanding the new bases for global
market segmentation." Journal of Consumer Marketing (2013).
Mariorty, Rowland T., and David J. Reibstein. "Benefit segmentation in industrial
markets." Journal of Business Research 14, no. 6 (2016): 463-486.
Nachum, Lilach. "The choice of variables for segmentation of the international
market." International Marketing Review (2014).
Storbacka, Kaj. "Segmentation based on customer profitability—retrospective analysis of retail
bank customer bases." Journal of Marketing Management 13, no. 5 (2017): 479-492.
Wedel, Michel, and Wagner A. Kamakura. Market segmentation: Conceptual and
methodological foundations. Vol. 8. Springer Science & Business Media, 2012.