Under the Hood: Marketing Technology

When you think of hybrid or electric automobiles, you probably think don't think "sports car."  But the Fisker Karma is about to shatter that stereotype. It's been called the hybrid with "sex appeal" and is often compared to a Mercedes-Benz roadster. During the haughty Rolex Monterey Historic Automobile Races, it was seen cruising around Monterey, California with the likes of Ferraris and Lamborghinis. In the increasingly crowded field of new-generation electric vehicles, Fisker Automotive wants to carve out a niche as a high-performance eco-car with lots of style. The creator, Henrik Fisker, was formerly head of design at Aston Martin. The Fisker Karma goes from 0 to 60 in six seconds, can go 125 miles per hour, and can travel 50 miles on electric power and 300 miles on combined electric and gasoline power. All this performance and style does not come cheaply, however. Prices range from $87,900 to $106,000. The company already has orders from 1,400 buyers. If this is above your means, don't worry—the company is promising a lower-priced, mass-market version for the rest of us in a few years.

Question 1

On what basis is Fisker Automotive segmenting the automobile market?  Is the company using a single segmentation approach or a combined approach?  Explain. (20 marks)

Question 2

What market targeting strategy is Fisker pursuing with this automobile?  (10 marks)

Question 3

How is the company differentiating its automobile and which value proposition is it using? (10 marks)