MKT 640 Module 4_ STP Proposal

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School

Southern New Hampshire University *

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Course

MKT 605

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Marketing

Date

Jan 9, 2024

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docx

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6

Uploaded by BailiffWren4916

Module 4: STP Proposal Tyler Weber Southern New Hampshire University Segmentation, targeting, and positioning are essential processes for successful marketing of new products. Taking this three step approach to developing marketing plans helps to focus marketing
ideas and ensure that the target market is reached in the most effective way possible. Ford is a company with global impact and they deal with a wide range of customer desires. One vehicle from their lineup can vary in desirability from market to market, and because of that the company needs to identify what to focus resources on when entering a new market. Belgium is a country of many cultures, and therefore many different demands from consumers. Using the STP process will help to identify these demands and maximize the return on their investment in marketing. Segmentation will allow Ford analyze their consumers to better understand who they are selling to based on information like demographics and geography but also cultural background and lifestyle. Considering the goal of the STP process “to break down the market for a product or a service into different groups of consumers who differ in their response to the firm's marketing mix program” (Kotabe & Helsen, 2022), segmenting by demographic is the easiest way to form distinct groups for the targeting piece of the process. Segmenting should show Ford the variations in demographics that would have an interest in their product and what segments are large enough to justify pursuing. Once those segments have been identified, the company can choose what segments to target and how to position their brand in the minds of those consumers in the target segments. Belgium is a difficult country to study and find data for when it comes to the automotive industry. Often, it appears that they are simply lumped in with the rest of the eastern European countries that they share borders with, which likely means that companies are either not doing their due diligence when it comes to segmenting Belgium, or they are doing their own internal research that has not been made available to the public. Euromonitor Passport did not have any information related to the automotive industry in Belgium alone, but with demographic data and
market reports that I have previously studied I was able to identify market segments for Ford. According to the CIA’s World Factbook, Belgium’s population has a medium age of 41.6 with approximately 63% percent of that population being age 15-64. The population is also slightly more male than female and is growing at a rate of 0.55% (CIA, 2023). What is a more notable statistic in terms of segmentation, is the estimate that 97% of the population of Belgium lives in urban areas, with much of it being in the capital Brussels (2.122 million) or the main port city of Antwerp ( 1.057 million) (CIA, 2023). This is roughly ¼ of the total population of nearly 12 million in only two cities. This information paired with concerns of pollution due to mass urbanization and industry identifies a segment of potential electric car buyers. I propose that Ford examines bases and variables that are focused on age, geography, and income to determine their target market segments. Segmenting using these bases and variables will show the different geographic requirements that customers require in a vehicle like the need for large vs small vehicles, age will help determine desire for vehicles intended for personal use compared to family use, and income will help show the percentage of consumers that can afford to buy more expensive cars in comparison to those looking for affordability over luxury. Ford presently offers a variety of vehicles in their lineup, but currently only 3 fully electric vehicles offered by Ford for sale in Belgium, and they are all priced over 50,000 euros (Ford Belgium, 2023). Considering that Belgium is a country that is very urban, and is facing climate issues and greater public interest in reducing pollution to combat climate change, there is an increase in demand for electric vehicles. The citizens of Belgium are also facing economic issues: “The top individual and corporate tax rates are, respectively, 50 percent and 25 percent” (Heritage Foundation, 2023) and “in October 2022, the inflation rate reached a 47-year high of 12.3%”
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