Chevron Corporation Essay Example | Topics and Well Written Essays - 2000 words

Chevron Corporation - Essay Example Market Segmentation, by definition, is the grouping of customers into sub-units or segments based on their needs implying that a particular market segment has the same needs and as such, a business develops the same marketing strategy to respond to the needs. Segmentation of target markets takes three approaches namely undifferentiated, concentrated and differentiated. In this regard, undifferentiated segmentation entails a business treating customers as the same or when an organisation targets homogenous market while concentrated segmentation occurs when a firm focuses on several market segmentations that have same needs and preferences, for instance, price sensitive consumers. However, differentiated market segmentation entails a business targeting many market segments or heterogeneous markets as with the case of Chevron Corporation because it has various business segments. Chevron’s market segmentation depends on both the upstream and downstream business segments. Upstream business operations include exploration, development and production of natural gas as well as crude oil while downstream operations involve crude oil refinery, marketing in addition to the transportation of the finished or the final petroleum products.Nonetheless, businesses divide their market using demographics, psychographic, behavioural and geographic criteria when segmenting their markets. Demographic segmentation takes into consideration customer characteristics including gender, age, education, income status, cultural background and job.