This website uses cookies to ensure you have the best experience. Learn more

Market Segmentation For Passenger Motor Vehicles

1127 words - 5 pages

4. Market segmentation strategies4.1 Market segments of passenger motor vehiclesPassenger Motor Vehicles can be segmented in various ways according to five major segmentation variables including geographical, demographical, psychological, benefit and behaviourial. The traditional way of segment the car industry is shown below:Mini (e.g. Nissan Micra, Seat Marbella)Small (e.g. Fiat Uno, Opel Corsa, VW Polo, Rover Metro)Medium (e.g. Fiat Tipo, VW Golf, Rover 200)Large (e.g. BMW 3 series, VW Passat, Honda Accord, Rover 400)Executive (e.g. BMW 5 series, Opel Omega, Audi 100, Rover 800)Luxury (e.g. BMW 7 series, Mercedes-Benz S Class, Jaguar)Multi purpose/sports (e.g. Land Rover, Porsche)(Figure 1 source: www.europa.eu.int/)All those segments are companied with other factors include price, image and the amount of extra accessories. These market segments have different brands competing against each other and Daimler Chrysler's Mercedes-Benz is under the luxury segment of the market, while having competitors such as Jaguar and BMW.4.2 Relevant domestic variableso Demographic variablesAge, family size, and income are frequently used to segment passenger motor vehicles buyers. Many brands of cars are designed to appeal to specific age groups or family-size categories. For example, Suzuki Samurai appealed to the young generation while Mercedes-Benz appealed to 30-45 age group people. General Motors also uses age and income as their basis for segmentation for a very long time. The household income ladder was divided into five segments, served by Chevrolet, Pontiac, Oldsmobile, Buick, and Cadillac (www.knu.edu.tw).o Behavioural variablesBehavioural segmentation is used to divide the market into groups according to occastions when buyers get the idea, make a purchase or used a product (Kotler, et. al 2001, p.167). In Europe, automobile manufacturers introduced "minicars", developed exclusively to commute in cities, (e.g., Renault Twingo, Fiat Cinquecentio). Other behavioral variables have also been used in automobile industry to segment international markets. For instance, attitudes towards cars differentiate car fans from people who consider cars a commodity. Loyalty status also distinguishes customers based upon their loyalty toward a brand or domestic preference in cars (www.knu.edu.tw).o Psychological variablesPsychographic criteria are the most important elements for segmenting car buyers. Cars like clothing are the most common ways to affirm social status, reflect personality, and lifestyle. As Gallup Jr. and Newport (1991) indicated, people use cars as symbols of their self-concept. European manufacturers, including BMW, Mercedes-Benz, Volvo, make use of more psychographics to meet the "emotional needs of emerging customer groups" (www.knu.edu.tw).4.3 Relevant International variables:o Political, socio-economic, and cultural variablesOne of the most significant political variables is international trade policy. For example, imported cars are often...

Find Another Essay On Market segmentation for passenger motor vehicles

Toyota Motor Corporation Essay

1004 words - 4 pages excellent reliability”; biotechnology and afforestation which is “broken [down] into three categories: agriculture, medical and chemicals”; and they are “developing e-TOYOTA business operations which offer additional value to customers by integrating [Information Technology] IT services with automobiles” (Toyota Motor Corporation, 2011). With their expertise expanded to all these different fields, Toyota will always be known for their vehicles

Volkswagen SWOT Essay

911 words - 4 pages Motor Corporation and many other automotive companies.Volkswagen Groups is a German corporation that manufactures passenger cars, commercial vehicles, motorcycles and engines. The company was the largest automaker by output in the world in 2011. Volkswagen Group also offers financial and leasing services. The company owns 13 vehicle brands, including Audi, Volkswagen, Bentley, Porsche, Skoda, Lamborghini, MAN, Scania and motorcycle brand Ducati. It

Marketing Research and Market Segmentation

2767 words - 11 pages Segmentation Companies separate the market based on some characteristic customer behavior against a product like customer relationship between company,advantages of products and services,type of occasions.(pride-ferrell,2008;281) How create value for both customers and Toyota Motor Corporation with segmentation Approach? Companies and marketer have to focus directly on the selected segments and if the segments are wide,consistent,preferred and

Internationalisation Of Toyota

2699 words - 11 pages AdvanceToyota is based on advance technologies developed by the organisation. Improving oil prices have seen sales of the new hybrid vehicles increase. Toyota has also sold on its technology to other motor manufacturers, for example Ford has bought into the technology for its new Explorer SUV Hybrid. Such moves can only firm up Toyota's interest and investment in hybrid R&D.Toyota is to target the 'urban youth' market. The company has launched its

Marketing the Class A (Mercedes)

3538 words - 14 pages alliance in March 2000. So, from now on, a lot of brand names belong to the same company (VAG has got Volkswagen, Audi, Seat, Skoda, Lamborghini, Bentley...)·Trends in market: in the automobile market, we can see a decrease of sedan cars, whereas there is an increase of convertibles, coupes and SUV (Sport-Utility Vehicles). Leisure is more and more important in the current market (that's why a product like Vaneo was created for the European

Marketing Communication Brief: Toyota Prius 2004-2005 plan [Draft version]

9549 words - 38 pages motor vehicles were sold on the Australian market. This was a new record, surpassing the previous record of 824,309 set in 2002 by 10.4 per cent. Domestic sales of Australian made passenger motor vehicles and derivatives totaled 276,462 vehicles, or 30.4 per cent of the total Australian motor vehicle market.The current market trend in recent years is that the price and volume of passenger motor vehicles are stable and there is a sign that shows a

Automobile Industry of Malaysia

1021 words - 4 pages believes that a strong motor industry brings employment, technology, economic development, and prestige. Malaysia's two national car makers, Proton and Perodua, dominate the local market, with over 90 percent market-share of passenger-vehicles due to the government's protective policies.U.S. Automakers Face a Multitude of Trade BarriersMalaysia maintains several measures to protect the local automobile industry: the highest import duties on autos and

Phases of the History of India

801 words - 4 pages war-1, around 4,000 motor vehicles were imported. During the wars, a start for an automobile industry was made by establishing assembly plants in Mumbai, Calcutta, and Chennai. The import / assembly of motor vehicles grew manifold post 1920s, crossing 30,000 units by 1930. It was towards the end of the war that the importance of establishing an indigenous automobile industry in India was realized when Premier Automobiles Ltd. (PAL) and Hindustan

Two Wheeler Automobile Industry TVS Motor Company Limited

6278 words - 25 pages Analysis - ScooterettesXXIIStrategic Group Analysis - MopedsXXIIIStrategy Development DirectionsXXIVBCG MatrixXXVTVS: Market Share (%)XXVITVS: Changing product profile; Capacity of 4 stroke vehicles in total vehiclesXXVIITVS: ExportsXXVIIITVS: Balance sheet as at 31-03-2004XXIX TVS: Profit and loss account for the year ended 31-03-2004TWO- WHEELER AUTOMOBILE INDUSTRY1. IntroductionThe two-wheeler industry in India has to a great extent been shaped

Henry Ford

622 words - 2 pages creations. During the next several years, Ford continued to fine-tune his passenger vehicles. In addition, he built racing cars and even drove them himself. In 1903, Ford produced an automobile he was ready to market, and he formed the Ford Motor Company with capital from Detroit citizens. In 1908, Ford introduced the successful Model T, which was manufactured for 19 years. However, Ford's successes were not without problems. Soon after the

History of Toyota

1455 words - 6 pages History of Toyota Replica of the Toyota Model AA, the first production model of Toyota in 1936 The story of Toyota Motor Corporation began in September 1933 when Toyoda Automatic Loom created a new division devoted to the production of automobiles. Quickly thereafter, the division produced its first Type A Engine in 1934, which in turn was used for the production of the first Model A1 passenger in May 1935 and the G1 truck in August 1935

Similar Essays

Market Segmentation For Companies Essay

1469 words - 6 pages INTRO Creating value for both customers and companies need some marketing research and some processes related with market segmentation.For making a effective and useful market segmentation,there will be some steps and some concepts that has to be known. The companies have to pay attention segmenting their products and entering a new market.Because of that, the company takes into consideration the all process of the market segmentation such

Mountain Dew: Reasons For Failure In Pakistan, Marketing Analysis, Strategies, Usp, Pricing Strategy, Competitive Analysis, Market Segmentation, Target Market, Etc

8497 words - 34 pages 55 Coca Cola 57 7 UP 60 Competitive Strategy OF Mountain Dew 63 Market Segmentation 65 Positioning through Life Cycle 68 Content Page No Marketing Strategy for Mountain Dew 75 Product Lines & Branding 78 Price Quality Strategy 85 Pricing Method 87 Distribution Channel 89 Developing & Managing Advertising 92 Advertising Message 95 Media & Measuring Effectiveness 97 Sales

Toyota Essay

4412 words - 18 pages Successful Strategy in Indonesia 3.8 Strategic M&A, Partnerships, Joint Ventures, and Alliances 3.9 Analysis of Financial Performance 4 RECOMMENDATIONS 5 APPENDICES 6 REFERENCES Analysis of Toyota Motor Corporation by Thembani Nkomo 1. TOYOTA CORPORATE OVERVIEW: Founded in 1937, Toyota Motor Corporation is a Japanese company that engages in the design, manufacture, assembly, and sale of passenger cars, minivans, commercial vehicles, and related parts

Making Highways Safe For Commercial Trucks "Big Trucks Need Road Too"

904 words - 4 pages car drivers have made highways unsafe and almost deadly for the commercial trucking industry.An online brochure found on www.sharetheroadsafely.org states that over seventy percent of accidents involving commercial trucks are caused by passenger vehicles. This fact is almost non-existent in the training manuals for passenger car operators. Accidents involving commercial vehicles are considered to be the sole responsibility of the truck driver