Mercedes-Benz Case Suggested Answers: 1.Evaluate the alternative bases that Mercedes-Benz might use to segment its market. Which base would you recommend and why? For this question students should demonstrate their knowledge of the different segmentation bases available to Mercedes. There are a variety of bases available for segmenting consumer markets including profile, behavioural and psychographic. There is no correct answer for this question. In consumer markets, behavioural variables such as benefits sought and purchase behaviour are particularly powerful bases for segmentation. To justify their choice of segmentation base students should discuss how their choice meets the criteria for successful segmentation. The five criteria for successful segmentation: effective, measurable, accessible, actionable and profitable 2.Discuss the key factors contributing to the success of Mercedes-Benz positioning strategy Positioning can be defined as the act of designing the company’s offering so that it occupies a meaningful and distinct position in the target customer’s mind. There are four keys to successful positioning; (1) Clarity: the idea must be perfectly clear, both in terms of target market and differential advantage. Complicated positioning statements are unlikely to be remembered. Mercedes has been clearly associated with quality and performance (2) Consistency: Mercedes message has been consistent for over 100 years demonstrated through awards for the quality of their design. Credibility: the selected differential advantage must be credible in the minds of target customers. Mercedes has been successful in creating credibility in the eyes of the customer. This can be seen by the value attached to the Mercedes brand. Competitiveness: the chosen differential advantage must possess a competitive edge. It should offer something of value to the customer that the competition is failing to supply.