SEGMENTATION AND POSITIONING CONCEPTS

Reflect on the automobile industry in your country of residence.

A.Decide on a segmentation approach for the automobile industry in your country of residence, identifying at least four different target market segments of that approach. Justify (from a marketing perspective) why your segmentation approach is an appropriate one, using the criteria in Figure 6.2

B.Choose three of the target market segments you identified and develop a rich detailed profile for each of these segments in point-form, using the major headings in Figure 6.7 Indicate with an asterisk (*) the characteristics or attributes of each segment that are assumptions that you would want to test with research.

C.Generate at least three ideas for how the marketing mix strategy of an auto manufacturer might be different for each of these three target market segments based on your profiles.

D.Assume the role of the marketing manager for a car brand. (You can decide which one and whether is it a model brand like Honda Civic or a variant like a Honda Civic LX.) Choose which target market segment you would focus on as your primary segment (target audience). Provide rationale (from a marketing perspective) for why this segment is more attractive than alternative segments you rejected.

E.Identify three car brands/models that are currently positioned to be attractive in one of the target market segments you profiled in 1.3.b. Describe how these brands/models are positioned by identifying: 1) at least three ways in which the brands/models uniquely appeal to customers in this segment or are more attractive than their competitors and 2) at least three ways the three brands/models in this segment differ from brands/models competing in other segments.

F.Based on your answer to question 1.3.e, develop two positioning maps that illustrate how these car brands/models are positioned in your country.

. Similar Enough Within the Group . Different Enough Between the Groups Large Enough . Measurable Market . Reachable Figure 6.2 Criteria for Effective Segmentation ApproachesFigure 6.7 Framework for Creating Rich Segment Profiles. Who are they? What are their demographic characteristics? What are their psychographic characteristics? What are their geodemographic characteristics? How price sensitive are they ? What do they want and why? segment? what are the benefits, features, attributes, or characteristics sought by consumers in this What do they need and want? What motivates the purchase and consumption decision? When do they buy and use it? What triggers the purchase decision? What is the context in which they buy the product? How often do they buy the product? What time of day, part of the week, or month, or year is it purchased? What time of day, part of the week, or month, or year is it used or consumed? Where do they buy and use it? What stores or other distribution channels do they use? Where are they when they use the product? How do they buy and use it? How do they decide what to buy? (decision-making process used) What or who influences the purchase decision? What media do they use/access in making the decision? Is it a thinking (cognitive) or feeling (emotional) decision? Is it a high-involvement (important or risky) decision or a low involvement (not important or risky) decision? How do they use or consume the product? . How much of it do they use? Segment Size What is the market potential? . What is the expected growth rate of the segment