“Carmakers Target Gen Y” Case Study

The demographic aspect for the Ford Mustang GT varies between Generation X and Millennials. Young adults in college and/or with a degree are the targeted group for this vehicle. Therefore, anywhere between 18 years to mid-40’s. The gender category is a mix of both males and females, but the majority share is dominated by males. Due to the fact that one can choose to finance the car or pay up front the income can vary. Also, when purchasing the vehicle based on how many miles it already has on it the price can differ. The car is valued at thirty-two thousand, so in terms of income I would say anywhere between sixty thousand and ninety thousand. Americans, Hispanic Americans and African Americans are the groups that highly invest in the vehicle.

How should Ford Motor company market differently to Generation Y, Generation X, and baby boomers?

By pricing their cars in the MSRP range of $19,500 to $35,000, they use the classical models of price discrimination to maximise profitability. With no “master” method of segmentation, ensuring the target is profitable enough requires experimenting with differing pricing options, further segmenting the market to find the “sweet spot” pricing approaches that increase sales without reducing profitability. MINI, with a 360 degree marketing approach, uses a full arsenal of tools in segmenting consumer markets along geographic, demographic, psychographic and behavioral lines (Jobber, 2007). Segmentation by geography. By breaking down markets into geographical units: state, regions, counties, cities, even neighborhoods, MINI has the option to act locally, across a region, or even globally, tailoring their branding message to meet the differences in needs and preferences as defined by geography. Segmentation by demographic lines. Using digital and direct mail to collect data on those most likely to buy, MINI has been very effective in breaking down target markets into groupings based on statistical variables such as gender, age, family size, family life-cycle stage, income levels, occupation, education, religion, race, and nationality. This method is most popular in defining consumers because determining needs

Throughout society car sales were always fluctuating. As a result car manufacturers began to use a different approach to increase sales. They began by targeting specific groups thoroughly, and studying common interests shared between specific age groups through advertisements. The advertisements produced by Chevrolet and Mercedes-Benz are all pointed toward unisex, middle aged, working class Americans. The three main advertisements are the Chevrolet Malibu, 2010 Chevrolet Camaro, and a 2010 Mercedes-Benz SLS AMG.

When looking at what makes a company successful, one main contributor is a solid organizational culture. Organizational culture is impacted by generational groups that differ in their communication styles, beliefs, and values as well as a preference between working alone or as a member of a team. This paper will compare and contrast the Gen Y and Baby Boomer generational groups in terms of organizational culture and interpersonal and group dynamics at Pick ‘n Save.

The Nissan leaf has been positioned differently for different market segments. According to Solomon, though the job of the marketer is to create value, build customer relationships and satisfy their needs, it is difficult, as in todays’ complex society people have different needs and therefore it is important to segment markets and target them individually, therefore markets are segmented into different segments on the basis of demographics; age and gender, family structure, income, race, ethnicity and social class (Solomon, 2013). Using these different criteria, marketers segment their markets, according to particular characteristics, which they share, and then target them accordingly. Targeting is evaluating

Toyota Motor Corporation’s marketing mix (4Ps) reflects the firm’s strategies for interacting with its target market. As one of the leading firms in the global automotive industry, Toyota’s target market is diverse in terms of consumer preferences and regional and local market conditions. As such, the company’s marketing mix is tailored to address these variations. Founded in 1937, Toyota has grown from a local business to a leading global player in the automotive industry. The firm now has operations in all regional markets, except Mongolia and some parts of the Middle East and Africa. Toyota’s continuing global success highlights the firm’s effectiveness in developing and implementing its marketing mix.

Today’s marketer must take into consideration many generational differences when considering a marketing strategy for a product. Most products are intended for a massive audience, requiring the marketer to utilize an integrated marketing scheme to encompass all generations.

A company called YuMe Inc. has recently surveyed over 5,000 consumers to “understand how cultural, environmental and life events influence purchase behavior, media viewing habits, device preferences and the impact on consumer marketing.” In that research they were able to segment millennials which made then realize that “by segmenting into different consumer models, companies can focus on the individuals who actually show interest in their product”. This is great for companies in choosing which approach to take when trying to reach these millennials. The results in sales become greater because the reach to a certain segment becomes more accurate. According to Mike Randazzo’s article “What Influences and drives millennial purchasing behaviors” Randazzo found that “while there are common characteristics that define the entire generation, there are more depth and nuance to the audience that advertisers should be aware of in order to influence this segment and drive high engagement.” This shows that if advertisers begin to lump a generation, in particular the millennial generation, into one segment the results will be

Under the perspective of investment and funding, Gen Xers in the late 80’s and early 90’s are responsible for generating the potential for the internet and advanced computer technology needed to birth Facebook. Due to a regulatory change in 1978 that allowed pension funds to consider venture capital funds “prudent” investments, money poured into investment and the number of venture capital funds focused on technology jumped from 47 in 1980 to 71 in 1982 and 113 in

Another vehicle that I believe is marketed based on the age of potential customers is Tru 140S. This is Chevrolet. The marketing is similar to that of Scion at the inception because Chevrolet worked really hard at understanding what the young segment required. Another similarity between the Scion and Tru 140S is that both are targeted at the young segment. The third similarity between Scion and Tru 140S is that both are priced below $20,000.

With the Baby Boomer generation nearing retirement, the next population wave that has begun to hit the job market is the generation of the Millennials, consisting of people born roughly from the early 1980's to the early 2000's.

The demographic will be 34 to 48 year olds or Generation X (Gen X), as they defined. The following article states that Gen X will be replacing the baby boomers in respects to cash flow for marketers. The author continues to state:

To ensure successful marketing for the Ecostar, it is most crucial to identify the best target market segment for this new automobile. When it comes to buying hybrid automobiles, there are certain customers who would more likely be interested in purchasing this kind of vehicle. Identifying the best target market segments will allow Nighthawk Motors to better strategize how to attract potential customers. The best group that should be targeted for marketing for the Ecostar is the middle class. Middle-class consumers have certain values in mind when they are making purchases. While they are able to live comfortably, they still want to have the best quality products for the amount of money that they spend. Low-class consumers are more likely to buy automobiles that are used due to higher financial restrictions (Blombäck, 2005). While high-class consumers are likely to buy new automobiles, they are also more likely to buy luxury brand automobiles (Blombäck, 2005). Because Ecostar is a new automobile, middle-class consumers are the best target market as they are more likely to look to purchase a new automobile that is also cost efficient.

I cannot say that I agree with the decision that Toyota made in this case. You have a car that is aim and targeted at a specific group yet there are restrictions. If this car was intended to aim at a particular generation it would have no effect or bearing on the next. At least in my opinion it wouldn’t. I feel that a loyal consumer is going to be just that as long as they are receiving what they have been getting all along. In addition to an already reputable line in my opinion does not need limits because you are feeding the needs of a totally different consumer. If they are not putting limits on their loyal consumers that have already been set in stone, then why put it on the potential lifetime consumer that are could be building in the process?