The Target Market Analysis and Market Segmentation as Assessment 3a
In other words, you will be writing an overall marketing plan for a product or service, in stages that are interconnected. Your task in this assessment is to prepare Step 3a of the marketing plan that complements the Step 1 of the marketing plan already submitted in Assessment 1. Should be between 1,000-1,500 words.
PART 3A: • Target Market Analysis and Market Segmentation
Today, the role of the marketing department has become important for every organization as they plan the marketing strategies that are aligned with the business strategies of the organization. The marketing department, however, needs to carry out market analysis, determine the needs of the customers, and accordingly place the products in the market that will assist in achieving the desired sales (Aaker, 2008).
Further, the marketing department also needs to collect customer feedbacks so that they can get an overview about the current needs of the customers, future expectations of the customers, and the changing trends regarding the given products in the market. The role of the marketing plan is also important from the organizational perspective as it will allocate tasks and responsibilities to the employees accordingly.
There is a need to devise marketing plan only after carrying out segmentation, targeting, and positioning strategies in a given market (Aaker, 2008). The marketing department needs to collect the required data and information from the market based on market research reports and other available data from the local sources.
This report will focus on identifying the target markets for the ELI Electric Vehicles in a given scenario. With increasing pollution effects and the rising demand of such vehicles in the market, customers of a given nation will be keen to purchase such products in a given market. However, the organization needs to analyze their target markets first along with the competition levels, if any. They can thereby carry out necessary advertisements and promotions to attract the target market toward the given electric vehicles in a given market.
In this case, the focus in on identification of the target markets for the electric vehicles that will be launched soon in a given market. It is clearly evident from the facts with increasing costs of fuel and due to pollution side-effects, people will switch over to such products. The entire automobile industry is also focusing on their research and developmental projects that involve the development of electric vehicles on consumer basis (Arnerson, 2011). However, it seems that there are still technical issues that the companies are dealing it. Once they are resolved, companies will launch them in a given market.
Today, there are several automobile companies that have invested heavily in the development of such electric vehicles. However, for a given company, it is important to define their target segments. The target segments based on the current market research and other research reports seem to be the consumers of the age 35-55 years. They will be working professionals and will give priority to use these vehicles over fuel-based vehicles.
These customers are concerned about the earth environment and hence would like to contribute by travelling through such vehicles (Arnerson, 2011). It will include both men and women that will be travelling and working in different companies. The costs of these products are higher compared to fuel-based vehicles as they are innovative products and will be launched recently in the near future.
The automobile companies will carry out further research to lessen the overall costs of development of these electric vehicles. However, the company needs to make sure of introducing differentiated factors as well for their products so that they can be considered as unique in the market. Only then the intended market segment will take notice of these products and will get motivated to purchase it from the market.
The companies can prepare for the marketing plan only after the target segment is proposed and defined clearly in the organization. The role of the top-level management is vital in such cases as they need to finalize the target segment for their products. Also, they need to conduct 4P analysis to ensure that the given products will be targeted appropriately in a given market scenario (Brow, Bessant, & Lamming, 2013). The 4Ps reflect to - price, product, place, and promotions. The associated advertisements and promotions will be conducted later once the product is targeted to the intended audience.
Target Market Analysis
The overall marketing objective of the organization is to increase the sales figures of 10,000 vehicles in the market by the end of the year. The company, as of now, is not focusing on the profitability but is focusing on capturing essential market share in a given competitive environment. The advertisement and promotion programs will be aimed at both young couples as well as working professionals of the given age category. The economic target of the company is to generate revenues that will improve overall profitability of the company by 15% by the end of the year.
However, before preparing the marketing plan, there is a need to carry out intense research in the direction of target market that will provide important and valuable information about customers (Cooper, 2012). It will assist the marketing department in identifying the needs of the customers and their expectations.
Market segmentation refers to dividing the market based on age, income, religion, employment status, tourism needs and preferences, and other such demographic and cultural factors. The role of the marketing team is vital in formulating segmentation strategies as they need to target specific marks for the given products and services (Brow, Bessant, & Lamming, 2013).
One needs to adhere to the fact that not the entire market can be targeted for a given product. Each of the customers will have their preferences and needs and hence, it will vary compared to other target segments. Also, the marketing costs of the organizations will increase in the case of targeting the entire market in different case scenarios.
For example, they need to formulate separate marketing strategies for different age group categories, which would lead to further increase in the overall costs of the marketing plan of the organization. Once segmentation strategies are applied, the marketing team can deploy strategies of targeting them with advertisements and promotions, and subsequently with positioning strategies in the current market (Cooper, 2012). Customers will be able to view the given products launched in the market; based on their needs they can thereby decide to purchase the electric vehicles for their daily consumption purpose.
The top-level management needs to prepare a marketing plan through which they will be communicating different marketing messages for the customers. The first step in the marketing plan is to determine the target segment of the customers. Once, it is identified they can thereby carry out positioning strategies that will provide a clear image of the product in a given market (Garay & González, 2012).
The companies need to organize demo workshops that will demonstrate the working of such electric vehicles. Customers should be allowed to have free test drives to get an idea about it. Further, they can launch introductory schemes and provide huge discounts to the customers. Also, they can provide free insurance of the vehicles during this launching period. It will attract several customers specifically that are concerned with saving of the environment.
It is important to include aspects of saving environment so that they can be correlated with the usage of electric vehicles. Also, the demonstrators of these vehicles need to show that there are also cost savings associated in the transportation compared to the usage of fuel vehicles. It will thereby create anxiety among the customers that will motivate them to purchase this product (Liu et al., 2010).
Further, the dealers of these vehicles can launch promotional offers such as providing free services during the first year. And, then they can provide them with annual maintenance plans at lower costs. It will increase the overall attraction of such products in the market. The word-of-mouth publicity will play a major role in increasing the overall sales for the organization.
The sales managers of the company can receive feedbacks from the customers and accordingly can modify both products and services. It will assist in achieving the desired sales objectives of the organization. The company needs to monitor the advertising and promotion plan to make sure that desired objectives are achieved (Menzly & Ozbas, 2010); they need to communicate the objectives to the staff so that they can work properly in the right direction. They should be provided with necessary resources so that they can carry out their roles and responsibly in an efficiency way.
The organization needs to support the employee staff at the ground-level so that they can get the exact reviews of the customers; also they can assist the ground-level in their needs and thereby motivate them to work for a given organization. Finally, it is important for the organizations to take into account the different and changing needs of the customers (Chernenko & Sunderam, 2012).
This report discusses the importance of identifying the target market of ELI Electric Vehicles in a given market scenario. The target market has to be specific or else the overall costs will increase for the marketing department of the respective organization (Liu et al., 2010). The marketing department can conduct market research as well as market feasibility analysis to prepare the marketing plan of the organization. The role of customers is equally important in assisting the marketing team during the formulation of the marketing plan. During the surveys, they can provide their feedbacks and reviews. It will help the company to prepare their advertising and promotions accordingly.
There are several case studies where segmentation is considered to be one of the most important criteria for preparing the marketing plan. The top-level management needs to review the market research reports and only then consider the proposal of the marketing plan from the marketing department. They need to allocate budget and resources, and hence, they need to evaluate each of the aspects of the marketing plan very carefully.
Also, even after implementing the marketing strategies, if desired results are not generated, the top-level management can change the marketing plan. They need to review the overall performance and based on that they can modify their strategies wherever required. It will subsequently help them achieve desired marketing objective of the organization.