4 Market Segmentation Methods for the Automotive Repair Industry

Different methods can be employed when dividing a broad market into smaller segments. Each method utilized will yield different information concerning the target market. A frequently used segmentation method is geographic. This alternative was not included in this writing as automotive repair businesses generally service a specific geographic area. Demographic segmentation is based on personal attributes; behavioral segmentation focuses on consumer reaction to service offerings; psychographic segmentation is based on activities and interests while segmentation by benefits focuses on the benefits a person seeks in vehicle ownership and maintenance. All segmentation methods will yield valuable information in defining target markets and subsequently marketing programs. Following are market segmentation methods applicable to the auto repair business:

1. Demographic Segmentation – This method of segmentation is based on variables such as age, gender, occupation, education level, income level and family status. These types of personal attributes can help to identify areas of interest. For example a person in the 20-30 year old group would have different concerns and goals than a person in the 50-60 year old group.
2. Behavioral Segmentation – Segmentation from this perspective is based on a group’s behavior toward a product or service offering. Examples are knowledge of, attitude towards, frequency of usage and loyalty. Knowing this perspective can be very valuable in developing service offerings as well as sales and marketing methods.
3. Psychographic Segmentation – Often referred to as lifestyle segmentation – this method is measured by activities and interests. This type of segmentation can be particularly pertinent in automotive repair as many customers can be enthusiasts in particular types of automobiles or members of auto clubs, etc.
4. Segmentation by Benefits – This method is based on the benefits a person seeks in owning and maintaining an automobile. While one person’s perceived benefit in vehicle ownership may be safety and reliability another’s may be image and prestige. This information can be very powerful in the development of marketing messages.