MKTG 396v8 Asssignment 2.docx - AARON DIEMER \u2013 MKTG 396V8#2 STUDENT ID 3426644 Aaron Diemer ATHABASCA UNIVERSITY MKTG 396 Assignment 2 Using the two

MKTG 396v8 Asssignment 2.docx - AARON DIEMER u2013 MKTG...

This preview shows page 1 - 4 out of 14 pages.

Aaron Diemer ATHABASCA UNIVERSITY AARON DIEMER – MKTG 396V8 #2 STUDENT ID: 3426644
Image of page 1
MKTG 396 Assignment 2 Using the two competing brands you used in the first four questions of Assignment 1, do the necessary research and answer the following questions. NOTE: Answers to individual questions should not exceed 800 words. Clear and concise answers are encouraged. Question 1 (20 marks) What is (are) the primary target market(s) of each of these two brands? When possible, provide two target markets per brand (a detailed description that can help a marketing professional to identify and properly serve each of these target markets is required). Referring to Figure 7.2 on Page 253 of the textbook, which targeting strategy each of these brands is using? Tesla has an intriguing story behind their market segmentation strategy, as they have become famous for the powerful brand and reputation they have established today. However, their target market segmentation is, and has always been, fairly straightforward (Wells, 2018). Tesla has almost created their own target market and caters to them exclusively: the premium all-electric sports car market. They are still figuring out how to cross over into the everyday market with their new series of model X’s. However, this probably won’t come into existence for another couple of years, and will require a significant amount of private investment funding if they can find it. Tesla, therefore, uses mono-segment positioning. Which means they concentrate on one segment exclusively. However, they pay close consideration to understanding customer sub-group movement (or micro-segments) within this one market segment. MKTG 396v8 Assignment 2 February 2, 2018
Image of page 2
Their target market segmentation incorporates different types of segmentation. It includes geographic, demographic, behavioural and psychographic. Tesla’s target market segmentation criteria includes different variables, including region, density, age, gender, life-cycle stage, occupation, loyalty, benefits sought, personality traits, social class, and lifestyle. Also, Tesla utilizes a type of positioning within their target market segmentation process that creates anticipation. Tesla’s products and services are positioned for a market segment that has low turnover grounded on predictions that the turnover will rise in the future as clean energy becomes the norm. By using a concentrated marketing strategy, rather than attacking a smaller share of a larger market, Tesla attacks a larger share of one or multiple smaller segments (Armstrong et al., 2015). Through concentrated marketing, Tesla has built a strong market position because of its superior knowledge of consumer wants in the niches it serves and the status it obtains. BMW applied a different marketing mix to sell cars to new socioeconomic segments, intensely stressing premium segments. BMW introduced the goal of segmenting the premium market to maximize sales by optimizing the fit between the consumers’ purchasing behavior and the marketing mix. BMW
Image of page 3
Image of page 4

You've reached the end of your free preview.

Want to read all 14 pages?

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture