Analyse one way a manufacturer of small cars could segment the market for its product.

Sure, here is a step-by-step analysis of one way a manufacturer of small cars could segment the market for its product:

Step 1: Identify the Basis of Segmentation The first step in market segmentation is identifying the basis of segmentation. In this case, the manufacturer could choose to segment the market based on demographic factors. This is a common form of segmentation that involves dividing the market into groups based on variables such as age, gender, income, occupation, etc.

Step 2: Segment the Market Once the basis of segmentation has been identified, the next step is to segment the market. For instance, the manufacturer could choose to target young adults aged 18-25. This demographic group is likely to be interested in small cars due to factors such as affordability, fuel efficiency, and ease of parking.

Step 3: Evaluate the Potential of Each Segment After segmenting the market, the manufacturer needs to evaluate the potential of each segment. This involves assessing the size of the segment, its purchasing power, and its needs and wants. If the chosen segment (young adults aged 18-25) is large enough and has sufficient purchasing power, it could be a profitable segment for the manufacturer.

Step 4: Develop a Marketing Mix The final step is to develop a marketing mix that caters to the chosen segment. This involves creating a product (small car) that meets the needs and wants of the segment, pricing it appropriately, promoting it in a way that appeals to the segment, and distributing it in places where the segment is likely to buy it.

In conclusion, a manufacturer of small cars could segment the market based on demographic factors, specifically targeting young adults aged 18-25. This would involve evaluating the potential of this segment and developing a marketing mix to cater to it.