Market segmentation for passenger motor vehicles

Demographic segmentation refers to segmenting a target market through population characteristics such as age, ethnic background, race, education, gender and income of a target market (Baack, Harris & Baack, 2013). This is important as it helps an organization to identify what markets to target and which new markets to venture into. The Jeep vehicle portfolio line includes the Jeep Wrangler, Grand Cherokee, Cherokee, Compass, Liberty, Patriot and Wrangler Unlimited and it has been established that some of the target demographics includes gender, education and

The fourth part of this report will investigate the claim that “smaller cars provide better values than larger cars,” given the provided data. The claim does not make clear what measurement for determining “values” is to be used, but we will proceed with the assumption that Consumer Report’s Value Score is an accurate representation of real-world value. Because we determined that the Size category and the two related ‘dummy’ variables did not have a significant relationship with the Value Score (which caused their subsequent deletion from the equation), and also because Size is largely represented by Cost/Mile—the choice was made to analyze the coefficient for Cost/Mile to help come to a conclusion. We are going to use the following estimated regression equation (which we constructed in Part III) for our analysis:

1. Develop a segmentation scheme for the automobile industry in your country of residence. Using benefit segmentation, behavioural segmentation, or some other basis of segmentation, identify at least four of the major groups of consumers in this market that are evident to you. Justify, from a marketing perspective, (explain) why your segmentation scheme is an appropriate one, using the criteria in Figure 3.2 (page 77). (5 marks)

The goal is to increase the overall market share and profits of MM’s Motors in the current market environment by targeting appropriate customer segments and proper allocation of marketing resources. Our initial strategy was to concentrate on segment A because of the following reasons:

How has GM used the major segmentation variables for consumer markets in segmenting the SUV market?

Since it’s now 2016, these teenagers are getting their driver’s licenses. They studied how many teenagers talk about the automotive world. They found that people between the ages of 13 and 17 seem to talk less about automobiles than generations before them. They found a 27% decrease in conversations about automobiles in these teenagers. However, people who are between the ages of 18 and 29 seem to have an increase in conversations held talking about automobiles. It’s been increased by 18%. People who are in their 30’s show in increase in automotive conversations by 17%. People in their 40’s show an increase in conversations by 10%. However, they found that people in their 50’s show no increase or decrease in the automotive conversations they have. This is an interesting study because you often see younger people with the fuel efficient and small vehicles. On the opposite, you see older people with larger and powerful vehicles. It almost seems as if the older you get, the more interested you will be in automobiles. Perhaps this is due to your income level increasing? There is even more evidence of younger people choosing smaller vehicles than larger vehicles. The conversations that the young people have about automobiles actually consists of car brands such as Subaru, Audi, and Hyundai. Subaru leads with 89% most appealing . If you have seen

The brand’s lineup is composed of six vehicles — four SUVs and two sedans — representing the kind of product mix that should ensure future growth. After all, demand for SUVs is surging and at the expense of sedans.

Thus, the Nissan Maxima and Toyota Avalon are midsize cars, while the Chevrolet Impala, Dodge Charger, Ford Taurus, and Hyundai Azera are classified as large cars. Two other models were not considered here — the Buick LaCrosse and the Chrysler 300 as these models are related to the Chevrolet and Dodge models featured here,

Volkswagen is using this segmentation on the countires which they have different econmies. For example Volkswagen imports diesel cars and small engine cars to Turkey because in Turkey gasoline pirces is really high. Also Volkswagen try to reach all customers who can afford for an VW cars. They have a wide product range for different socio economic status.

The Mustang is segmented by end user. Mustang buyers are typically male, and relatively young, with the company attempting to reach ever-younger segments of the market to ensure that the car maintains its market share (Greenberg, 2009). The company also uses special models in order to maintain interest in the Mustang among pony car aficionados, many of whom are older, are interested in collecting, and remember the Mustang's glory days in the 1960s. Thus, the bulk of Mustangs are sold to today's core target audience, but the company also uses the brand to market to some middle-aged and older males as well, in a more premium segment, where marketing is based primarily on nostalgia for the Mustangs of old, and the new cars that capture that aesthetic.

The company aims to generate profitable growth and above-average returns by focusing on the premium segments of the international automobile markets. With this in mind, a wide-ranging product and market offensive was initiated in 2001, which has resulted in the BMW Group expanding its product range considerably and strengthening its worldwide market position.

BMW Group is one of the largest and most successful multi-brand automobile manufacturers in the world, headquartered in Munich, Germany. Just like many other

- New competitor’s entry in the market: The Mercedes Benz faces an intense competition from small car manufacturing company and the reason these small companies can affect the sales of the Mercedes is the economic crisis faced by the world people prefer to opt for a small less costly car

Market segmentation is an approach used by a company to select their target market and provide data for a marketing plan. “Market segmentation consist of a two-step process; naming broad product markets and segmenting these broad products-markets in order to select target markets and develop suitable marketing mixes” (Perreault, Cannon, & McCarthy, 2014, p.97). There are 4 categories pertaining to market segmentation; behavioral, geographic, demographic, and behavioral.

Then use a combination of the various market segments to narrow down on an EFFECTIVE target market. Some of these may include, but are not limited to demographic, geographic, and behavioral. They were really pushing the whole “cheap” aspect in an area where the market segment is more interested in cars that symbolize a greater status. In other words, the Tata Nano is