Product Positioning and Segmentation
A market is a group of buyers who have the opportunity to purchase, with the willingness and ability to buy a product or products. The family 4x4 car market is an example of a business market, in particular subdivided into a producer market title. Within this business market, market segments occur as the subgroups within the producer market of family 4x4 cars have very similar characteristics. The producers of these cars have a similar target market, whereby they identify the elements needed by families and offer the segments needed to produce a product, which will best serve this market niche. Through product and market specialisation of the cars, the producers are effectively able to produce 4x4 cars suitable to the needs of the target market, by applying appropriate and appealing features to the car within their market segment.
A productive company will use effective segmentation to produce a dynamic and successful product within the target market. The variables for segmenting are that of demographic, geographic, psychographic and behavioural, all of which apply to the family 4x4 car market. The particular segments relating closely to this target market are that of age, income, lifestyle, location and personality. The age group of the consumers are of families with parents over the age of 28 with a high income to obtain a Jeep Cherokee and Range Rover, and a middle income to purchase and maintain and Prado or Pajero. The lifestyle of these consumers is an outgoing, outdoorsy adventurous family who would enjoy camping or off road driving in the location of bush or places of rough terrain. This closely links with the personality of the groups with having an outgoing and adventurous behaviour, one that is very family oriented. The cars are designed specifically to meet this segmentation of consumer’s tastes.
Product Positioning is a process where producers aim to create an image or identity in the minds of their...
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