This activity focuses on Karma Automotive.

"Karma Automotive, founded in 2014, is a southern California based producer of luxury electric vehicles. Headquartered in Irvine, California with a production facility located in Moreno Valley, Karma sells vehicles via its dealer network in North America, Europe, South America and the Middle East." (Source: Karma Automotive)

Q.2. (a) Which of the following levels of segmentation (see Figure 2) is Karma Automotive currently employing? Use research to justify your answer.

Figure 2: Levels of Segmentation

Full Market Coverage - serving all segments with all the products they may need

Mass Marketing - selling one product to all segments

Single-Segment Specialization - focus on niche market

Multiple Segment Specialization - akin to differentiated marketing

Individual Marketing - micro or one-to one marketing

(b) What recommendations would you make to the company going forward with regard to the levels of segmentation in Figure 2? Explain your answer and include any related risks/downsides associated with the recommendation.