Segmentation and Target Market
Segmentation and Target Market: Elio Motors
Tina M Miller
MKT 571
August 18, 2014
Jason Leonard
Segmentation and Target Market: Elio Motors
Introduction
Paul Elio is the engineer and company CEO of an American startup automaker founded in 2008: Elio Motors. Production is slated to begin in early 2015 in Shreveport, Louisiana. The design of the vehicle has three wheels with all the standard convinces of a four wheeled vehicle. The selling points of this vehicle is that 90% of the parts used to produce the vehicle are American made, 84 mpg, and a projected manufacture suggested retail price of only $6,800. This paper will discuss the target market, market segmentation, and company strategy and branding.
Market Segmentation The process of dividing an entire market into different consumer segments is just what Paul Elio decided to do when he saw a potential for his 3-wheeled efficiency vehicle. Before a business can target a specific market the market needs to be divided into segments based upon similar needs, wants, or desires. “It is not feasible to go after all customers, because customers have different wants, needs and tastes” (Suttle). Identification of target demographics is necessary for market segmentation research. Consumer demographics range from gender, age, ethnic and religious groups, household size and income, and even geographic regions. Markets can also be segmented based on a consumers behavioral and psychographic characteristics. Mr. Elio took notice that many consumers in their daily commutes are driving large vehicles and have only one person in the vehicle. He saw a need for a more economical commuter vehicle. Market segmentation does not only happen from the side of the organization, consumers also segment themselves. Consumers will select the proposition that best meets their needs. Therefore the organization must ensure that their product meets the consumers’ needs better than the other supplier. A detailed understanding of who
Tina M Miller
MKT 571
August 18, 2014
Jason Leonard
Segmentation and Target Market: Elio Motors
Introduction
Paul Elio is the engineer and company CEO of an American startup automaker founded in 2008: Elio Motors. Production is slated to begin in early 2015 in Shreveport, Louisiana. The design of the vehicle has three wheels with all the standard convinces of a four wheeled vehicle. The selling points of this vehicle is that 90% of the parts used to produce the vehicle are American made, 84 mpg, and a projected manufacture suggested retail price of only $6,800. This paper will discuss the target market, market segmentation, and company strategy and branding.
Market Segmentation The process of dividing an entire market into different consumer segments is just what Paul Elio decided to do when he saw a potential for his 3-wheeled efficiency vehicle. Before a business can target a specific market the market needs to be divided into segments based upon similar needs, wants, or desires. “It is not feasible to go after all customers, because customers have different wants, needs and tastes” (Suttle). Identification of target demographics is necessary for market segmentation research. Consumer demographics range from gender, age, ethnic and religious groups, household size and income, and even geographic regions. Markets can also be segmented based on a consumers behavioral and psychographic characteristics. Mr. Elio took notice that many consumers in their daily commutes are driving large vehicles and have only one person in the vehicle. He saw a need for a more economical commuter vehicle. Market segmentation does not only happen from the side of the organization, consumers also segment themselves. Consumers will select the proposition that best meets their needs. Therefore the organization must ensure that their product meets the consumers’ needs better than the other supplier. A detailed understanding of who
References: Elio Motor: How it all Began. (n.d.). Retrieved from Elio Motors: http://www.eliomotors.com/ Kotler, P., & Keller, K. L. (2012). Marketing management (14th ed.). Upper Saddle River, NJ: Pearson Prentice Hall. Suttle, R. (n.d.). Define Market Segmentation & Targeting. Retrieved August 17, 2014, from smallbusiness.chrono.com: http://smallbusiness.chron.com/define-market-segmentation-targeting-3253.html