Question

Select a product or service that you are familiar with, such as jeans, computers, or personal MP3 players. Once these items are selected, then you must undertake research into the specific items : target market and market segmentation. Your answer must contain information as to: How large is the target market, what is the future growth potential of this target market, how do/does the marketer reach this target market and so on? Also, mention in your answer that how will you “re-position” this product to another market segment. For example, if you select MP3 players as a product of your choice, and confirm that the target market for this is Millennials, then you should be able to define how the manufacturers of MP3 players will attempt to re-position the product to attract the baby boomer generation to increase their purchases of MP3 players.

Adhere to the following structure while answering

- 1st Section

Research on target market

Potential market and available market (4 marks)

Market Segmentation

Segmentation based on any 3 criteria (3 marks)

- 2nd Section   

Market repositioning

How was it positioned before? (1 mark)

Which customer have they chosen to reposition?  (1 mark)

How will it be repositioned?

Pls Note :The above question is from 'Marketing Management' discipline. So, please have the answer accordingly.

Answer 1

Product which has been selected is a car. The product is selected because it has now become a product with high demand from all levels.

Previously, it was owned exclusively by upper-middle-class people. The target market for these products are young people in the age group 18-40, people in the age group 40-55 and people in the age group 55+.

The selection of the target market depends on age, income, standard of living, price, etc. The available target group is business class and class 1 high income civil servants and executives. Potential markets include the middle class and the lower middle class people. The potential market is larger compared to the target market, therefore, by framing marketing strategies and manufacturing variant products to meet the needs of the potential market, sales can increase. The future of the target market also looks promising. Since the life of passenger cars is getting shorter, companies can continually develop variant designs of existing models to appeal to the target group. In addition, they can create new designs. Switching from gasoline cars to diesel cars, battery cars, hybrid cars that run on gasoline and gas, etc., to name a few.

There are many segmentation modes for passenger cars. This is primarily focused on the clients and their specific requirements.

There are three criteria selected for market segmentation in the case of passenger cars are:

1. environmentally friendly approach,

2. quality and safety features, and

3. family requirement.

The product was positioned before focusing on the upper middle class and the business class. Now they have chosen middle and lower middle class clients to reposition themselves. They will be repositioned by implementing optimization in car designs to produce low-budget cars that have fuel economy and other cost benefits. Therefore, companies can reposition their target customers from commercial and official tire classes to ordinary people. Another customer segment that needs to reposition itself is women and the elderly. Gearless automatic cars will be your choice. This repositioning can be achieved by promoting automatic car use by women and older people, battery car use by environmentally friendly customers.