A reputed American automaker competes in the premium car market segment. It targets affluent buyers with refined tastes who would not mind paying several thousand dollars for a premium car. This is an example of both market segmentation and product positioning.

Question

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Market segmentation involves dividing a broad target market into subsets of consumers who have common needs and priorities, which in this case is the affluent buyers with refined tastes. Product positioning refers to the process by which a business presents its products to the target market in a way that differentiates it from competitors, which is achieved here by targeting those willing to pay more for premium features.

A Reputed American Automaker Competes in the Premium Car Market