Marketing segmentation forms a critical element in marketing in most industrialized countries. According to (Wedel & Kamakura, 2000), among the mass production and marketing strategiesput was manufacture oriented production, focusing on reduction of production costs rather than satisfaction of consumers. Since production processes became more flexible with the diversification of demand due to consumer affluence, firms started producing appropriate offers for specific target group. In his influential book, Market segmentation: Conceptual and Methodological Foundations, the evolution of market-oriented thoughts led to the view of heterogeneous  markets to be a number of smaller homogenous markets responsible for differing consumer preferences.

(Wedel & Kamakura, 2000) further, describe new challenges and opportunities in the market environment to cause market segmentation. This segmentation becomes effective and efficiently manageable only if they have a different homogenous group of customers. This icon micro marketing and direct marketing approach. For this reason, identifiability, substantiality, accessibility, stability and responsiveness creates the criteria for determining profitable marketing strategies.

According to (Clarke, 2005) both internal and external factors affecting business are analyzed for clarity before engaging in the future business plans. Inthis case, a car entrepreneur will define the potential long-term customers, project growth, competitors with a realistic assessment of the business. This assessment involves a SWOT analysis in which strengths and weaknesses are externally analyzed while opportunities and strengths are derived from an external analysis (Lorette, para 2).Creation of goals, strategies and implementation practices forms an imperative decision making  protocol  for future planning and product evaluation of a SWOT profile.

(Richter & Pahl, 2009)identify strategic planning phase to be the most important phase in both market segmentation and situation analysis. Issues pertaining the project , that is, A car enterprises planis considered, with close emphasis on both positive and negative factors. Therefore, this section intends to  focus on the market segments and size, target market, recent trends and the competitive environment.

Market Segments and Size.

According to (Andre, 2011) the car rental industry is a global one where car rental agencies offer temporary use of automobiles andlight trucks to consumers, companies and business. Inorder to ensure its efficiency, technology use is considered. A number of variables are considered in setting up the market segments. This includes, geographic variables, socioeconomic variables, the household and firm sizes and the standard industrial classifications. Based on buying and consumption behavior, consumer perceptions of the car brand enterprise attribute depend on the market penetration.

The car Rental enterprise  Industry has its largest market segment in the UnitedStates, making over $17.4 billion in revenues in2004 (Rental, 2009). The Car enterprise located, its branchesclose to its customers that enabled it have many consumers. However, this convenience gives the Car Enterprise a competitive advantage over its rivals. Having many rental locations clustered over a large region such asa state  with many vehicles makes them available for renting purposes. America has over 17,000 rental locations with over 1.7 million vehicles available for rental(Rental, 2009).According to “PassengerCar Rental”, the leading company that had various branch locationsin the industry supplied almost 30.5 percent of all cars.With these segments, emphasis on customer welfare is created that relieves their burden and stress. Offering customer satisfaction strategies, proper communication strategies in the rental locations extensively put its services higher than other renting firms.

Target Market

The target group forms the most crucial part in the car enterprise cycle. Analyzing the target group in the market involves a series of steps, else the focus would be at the wrong target group. According to Passenger Car Rental, (2009, p2) the Enterprise’s primary focus usually is on the adjacent neighborhood markets. Basing on this, the enterprise forms a local network of individual customers in the neighborhood vicinity.

The description of the target market requirements involves highlighting the target people such as professionals, business individuals and vendors, students etecetra. The demographics such as age and gender, behaviors and need desires need greater emphasis. According to (Tanner, Jr, & Raymond, 2013), consumer behavior is influenced by many things, including environmental and marketing factors, the situation, personal and psychological factors, family, and culture. Though the personality factors create the considerable effect, gender and age concept bears more weight on the target market. Though many  businesses today are taking greater pains to figure out what a specific gender requires in the car enterprise, marketing strategies have dwelled on an all-round technique of targeting both genders.

Lifestyle activities including, how people spend their time and what their priorities are, values, opinions, and general outlooks on the world are put into consideration. Where do they go other than work? Who do they like to talk to and What do they talk about? Specifies an individual preferred product such as a car (Tanner, Jr, & Raymond, 2013).

The target social class is a great determinant in marketing strategies(Armstrong, Adam, Denize, & Kotler, 2011).Whereas,  income defines social class, the primary variable determining social class is occupation. To some degree, consumers in the same social class exhibit similar purchasing behavior.Basing all the above when identifying a target group, The car rent Enterprise will get the best market for its goods.

Recent Trends

According to (USA, 2013), trends in the United States market research include; analysis of key supply-side and demand trends, Detailed segmentation of the market, previous information volumes and values, company and brand market shares, five year forecast of market trends and market growth  and robust and transparent market research methodology, conducted in-country. Most firms use situation analysis of opportunities and risks. (Rental, 2009), identifies trends that impacts the consumer markets. The first trend is power purchasingconscious of the environment, second is economical smartness in the declining state of the economy. Most companiesuse these two trends to create opportunities to generate revenue and customer satisfaction.

According to various car cooperatives in the United States, several initiativeswere launched to ensure a user- friendly environment. Companies’need for cheap, environmentally safe and accessible vehicles invented the friendly option. Basing an enterprise in such an opportunity, a program designed to ease traffic congestion, decrease pollution, and make car rental convenient to downtown commuters. However, with this concern on environmental issueswiththe hybrid car sharing program, car enterprises collectively help their consumers’ budget efficiently in financial crisis. Like any other enterprise firm, producing most of its revenue in a country, services rendered by a car enterprise may be subject to economy fluctuation in a country.

Competitive Environment

There are many factors that drive competition within the car rental industry. Price competition may not be a factor; however, most companies focuse on implementing a value system and long term profitability. In addition, most companies are gradually lessening their focus on their airline operations and focusing on leisure rentals (Rental, 2009). The threat of potential entrants is low since the established car rental companies have continued to increase their market share

The competitive environment is majorly controlled by the customer needs and wants.Listening to the customers creates a platform for competitive advantage in a business approach. According to (Kiril, 2014)car rental owners and tourist consultants, actively monitored their competitors, marketing activities such as prices, new services introduced in the industry, sales promotional activities and new competitors. The business environment makes most of the competitive environment, since economic situations affect the macro-market environment.

In comparison to other competitors, varied competition that is a notch higher has led to the expansion of the Car enterprises. Numerous Car Enterprises have expanded their fleet. Although thisgoverned by the economy, scaling back by various car rental enterprises takes the course. For instance, (Rental, 2009) poor economy causes many car rentals companies fail to purchase fleets of cars from automakers.

According to (Rental, 2009), major elements that rank a car rental enterprise in a competitive environment are customer satisfaction cues such as pick up services and offering newer vehicles for use. Introduction of new services such as hybrid cars in the company, over the poor economy makes these enterprises outstanding when other companies cannot afford this service. Impressing technology like GPS devices in the cars helps client travelers avoid unnecessary hassles and guides them efficiently to get to their destinations quickly.

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