This document provides a detailed analysis of segmentation and targeting in B2C and B2B markets. It discusses the different factors involved in segmenting the market and targeting specific customer groups. The document also explores how ACE EV Group targets different customer segments with its electric cars.
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Running head: CLIENTS AND MARKETS ANALYSIS CLIENTS AND MARKETS ANALYSIS Name of the Student Name of the University Author Note
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1CLIENTS AND MARKETS ANALYSIS Table of Contents Introduction – Segmentation and targeting....................................................................2 Evaluation of the segment..............................................................................................3 B2C............................................................................................................................3 B2B............................................................................................................................5 B2C target segment........................................................................................................6 B2B target segment........................................................................................................7 Conclusion - Positioning and behaviour of customers...................................................8 References....................................................................................................................10
2CLIENTS AND MARKETS ANALYSIS Introduction – Segmentation and targeting As discussed by Thoeni, Marshall and Campbell (2016), segmentation process is mainly based on the ways by which an organization is able to identify the niches who have specific demands and needs. The segments are based on groups of people who have similar types of demands. The different factors that are related to the division of segments in the market include, demographics, psychographics, lifestyle, beliefs and values, life stages, geography, behaviour and benefits. The process of targeting in the next that is taken by the organizations in order to fulfil demands of the different customer groups (Kolhede and Gomez-Arias 2017). According to Kubacki, Dietrich and Rundle-Thiele (2017), targeting is also based on different factors that include, size of the criteria, difference, money, accessibility and focus on the various benefits. The entire process of segmentation and targeting is considered to be highly customer oriented in nature as the segments are totally based on choice and demands of the consumers. The customer oriented segmentation, targeting and positioning is based on the division of groups with respect to the choice of the products by customers, their behaviour and lifestyle. The products that are to be purchased by the customers are also affected by the position of the organizations both in case of B2B and B2C markets (Schlegelmilch 2016). The automobile based industry has faced a transition in the recent times that is quite unique in nature and ACE EV Group is considered to be the flag bearer of the new and innovative future that is developed by the organization in Australia. The organization has planned to launch a major range of electric cars that can be used for commercial purposes (Ace-ev.com.au 2019). The different vehicles that have been planned by the organization include, The ACE Yewt, ACE Urban, The ACE Cargo. The advanced technologies that have been implemented by the organization for specialised local production are able to provide a
3CLIENTS AND MARKETS ANALYSIS major contribution to the highly competitive automobile industry. The shift that has recently taken place in the automobile industry related to the usage of electric vehicles is considered to be a major factor that has led to the development of Electric Vehicles (Ace-ev.com.au 2019). Evaluation of the segment B2C The market that has been targeted by the products of ACE YEWT is based on the group of people who prefer environment friendly cars. The electric cars that are being developed by the organization can fulfil the needs of these types of customers. The B2C customers of the organization will be segmented into different groups with the help of the following segmentation based factors (Andaleeb 2016). The process of B2C segmentation is considered to be different in comparison to that of the B2B customers. The various processes that are used in this case include, Demographic segmentation –This is considered to be the B2C version related to the process of firmographics. Demographic segmentation is helpful for ACE YEWT for dividing the customers in the organization with respect to their gender, age, education, occupation, religion, marital status and income (Gengler and Mulvey 2017). This process is used by the company in order to categorise the macro group of customers who have similar types of demands and needs. Geographic segmentation –This process is used to divide the customers with respect to the geographic location. This mainly allows the organizations to focus its services and products on specific geographic locations. The small sized companies are able to save their marketing spends with the help of this segmentation process (GREEN and WARREN 2019).
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4CLIENTS AND MARKETS ANALYSIS This is implemented by ACE YEWT in order to divide the customer groups in different geographical regions of the world. This segmentation process is also based on the proper division of the customers into macro segments (Barton 2015). Behavioural segmentation –This approach is used for the ways by which customers can be segmented with respect to their attitudes towards different products and services. The different factors that have an impact on the segmentation process include, awareness, loyalty towards a brand, social media based interaction, purchase patterns (Klein 2016). The behaviour of individual customers of ACE YEWT are able to affect the ways by which different products of the company can be offered to them. The behaviour of customers can be analysed in order to divide the group of customers into micro segments. Psychographic segmentation –This is considered to be a less quantifiable approach based on proper segmentation. The factors that are considered in this approach mainly include, value, social class and lifestyle (Kolhede and Gomez-Arias 2017). The social class of the consumers will play a major role in deciding the purchase of cars that are being developed by ACE YEWT as they are mainly perceived to be targeted towards upper class customers. This method will be able to develop the micro segments of customers of ACE YEWT. The class of people will be able to help the company to decide the target segment in an effective manner (Dibb 2017). ACE Group has aimed at introducing the first Australian electric car in third quarter of the year 2019. Two of the major models of the organization are in pipeline and will be introduced in the market within a short period of time. The company targets its products to the consumers who are a part of the urban environments (Choi and Kim 2015). The vehicles are mainly designed for different jobs that include, physiology labs and small trades. The Cargo vehicles of ACE-EV are targeted towards the ways by which customer needs can be
5CLIENTS AND MARKETS ANALYSIS suited with the help of its wide variety of products (Kubacki, Dietrich and Rundle-Thiele 2017). B2B . The customers of ACE YEWT Group are not only based on the individual customer groups, different small and big organizations are also major consumers of the organization. The organization has targeted these consumers with the help of its electric cars in order to provide support in the transportation based operations. The cars of ACE YEWT can be used by the organization in order to fulfil their needs in an effective manner (Kubacki, Dietrich and Rundle-Thiele 2017). The customers of B2B however need to be divided into different segments with the help of different segmentation based processes that have been discussed further, Value based segmentation –This is able to divide the customers with respect to the economic value that is provided to the customers. This is used by ACE-YEWT in order to divide the groups of consumers based on the size of their business. The value based segmentation of B2B customers will be related to the macro segments (Kolhede and Gomez- Arias 2017). Needs based segmentation –This approach is related to segmentation of customer groups based on the needs related to services and products (French 2017). This can be implemented by ACE YEWT in order to divide the segments base on their specific needs. The needs based segmentation process is mainly based on the development of micro segments of B2B customers of the organization (Andaleeb 2016). Priori segmentation –This approach is based on the information related to consumers that is available on the website or through any other publicly available source as well. ACE YEWT can use this process of segmentation in order to analyse the customers based on
6CLIENTS AND MARKETS ANALYSIS information that is available about them. This will play a major role in understanding their demands and needs and dividing the group into micro customer segments (Schlegelmilch 2016). As opined by Ohmae (2016), the needs of a particular business organization are also fulfilled effectively by the products that are developed by ACE EV. The organization has provided major levels of attention to the ways by which a fleet can be developed in order to consider the demands of different business organizations. The development of a huge fleet of cargo vehicles will be able to play a key role in providing effective services to the customers of ACE YEWT. The company will be successful in fulfilling the needs of the different B2B customer segments with the help of the fleet of cars that are manufactured. According to Schlegelmilch (2016), psychographic segmentation can be implemented in order to consider the social class of employees in an effective manner. The consumer markets are considered to be important factors that are considered in order to maintain provide the vehicles to organizations that require the services. The macro segment of B2B customers that can be targeted by ACE EV Group is based on different small and large sized organizations in order to support the organizational processes. The micro segment of B2B customers of ACE EV Group is related to the ways by which the small business owners can be targeted by the electric cargo vehicles. B2C target segment The global automobile organizations have targeted their products towards affluent or environmentally concerned buyers. However, the niche target segment that can be targeted by ACE EV Group include, those people who expect value for money that is spent for the purchase of these cars. The development of valuable products is major challenge for a new organization like ACE Group. The production has been recently developed in Australia in
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7CLIENTS AND MARKETS ANALYSIS order to fulfil needs of the local consumers (Sheth 2018). The marketing related team of the organization needs to focus on the ways by which the customers belonging to different groups can be communicated about the different advantages that are offered by the product. The niche market segments of the organization can have a major impact on the ways by which ACE-EV can maintain its position in the highly competitive automobile industry (Thoeni, Marshall and Campbell 2016). The main reason behind the selection of this target market is related to the needs that need to be fulfilled in order to increase the levels of awareness related to the new cargo vehicles that have been developed by the ACE YEWT Group. The electric cargo vehicles will be able to fulfil the demands and needs of the consumers in an eco-friendly manner. This will also be able to play a key part in the methods by which the consumers can fulfil their personal needs with low impact on the environment (Thoeni, Marshall and Campbell 2016). The generic theory of buyer behaviour can be implemented by the ACE YEWT Group in an effective manner in order to analyse the decision making process of the buyers of the company. The prices of products or cars can play a major role in the decisions that are made by the consumers or niche target segment of the organization (Venter, Wright and Dibb 2015). The niche target segment of ACE YEWT can thereby be targeted effectively by the development of proper messages that are provided to them related to the products. The company aims at targeting different segments of consumers by their cars. This is considered to be an effective step in order to develop its position in the industry. The organization will be able to provide its products to a large of group of consumers. This factor will be able to play a major role in increasing the revenues of ACE YEWT in the electric car based industry (Kubacki, Dietrich and Rundle-Thiele 2017).
8CLIENTS AND MARKETS ANALYSIS B2B target segment The B2B target segment of ACE-EV Group is based on the small or large sized business organizations who wish to use the cars in order to move their products from one place to another in an efficient manner. The costs based on transferring cargo between the two areas is considered to be an important factor that has to be considered in order to develop the operations of an organization like ACE Group. The manufacture process is based on the speed of cargo transfer with the help of the vehicles that are offered by ACE-EV Group. The decision making process is considered to be an significant factor that is able to influence the B2B consumer group targeted by ACE-EV Group (Wirtz and Lovelock 2017). The niche target segment of ACE-EV Group is mainly based on the owners of the small business organizations that require the cargo based vehicles in order to transfer the goods from one place to another. The vehicles of the organization will be able to provide major support to fulfil the transportation based needs of the small and large business owners in the United Kingdom. The small business organizations will be able to use the cars due to the low costs based on manufacturing and low prices as well (Yung 2018). The strategic orientation of the organization is also based on the ways by which the cargo based vehicle can be used for fulfilling the needs of small business organizations along with the large companies as well. The decisions that are to be made by the B2B consumers are based on the seven stages that include, identification of the decision, gathering appropriate evidence, identification of the substitutes, evaluating the proof, choosing among the substitutes, taking action and revising the decision (Venter, Wright and Dibb 2015). As discussed by Thoeni, Marshall and Campbell (2016), the behaviour of B2B customers can be analysed with the help of implementation of proper theories. Collaboration is considered to be an significant aspect that is able to influence the relationships that have been developed between the customers and management of ACE-EV. The Co-creation of
9CLIENTS AND MARKETS ANALYSIS products is also implemented in order to develop the products based on demands and needs of the B2B consumers. The marketing based process that can be implemented by the company needs to be highly adaptive and agile in nature. This will be able to play a major part in the methods by which the organization can understand the needs of buyers and deliver the messages in an effective manner (Venter, Wright and Dibb 2015). The B2B customers are considered to be an important part of the customer base that has can be formed by ACE- YEWT in the automobile based industry. Conclusion - Positioning and behaviour of customers As opined by Kubacki, Dietrich and Rundle-Thiele (2017), the positioning stage of the Segmentation, Targeting and Positioning or STP process is considered to be highly important for the ways by which an organization can develop its image in the industry. The positioning of an organization in the industry is totally based on the ways by which its image is developed (Kubacki, Dietrich and Rundle-Thiele 2017). ACE-EV Group also needs to be develop its place in the industry with the help of its cost effective strategies that are able to provide key levels of support to the small organizations (Kolhede and Gomez-Arias 2017). ACE-EV needs to position itself in the electric car vehicle based market as a manufacturer of cargo based vehicles that will be targeted towards a large customer base that includes the high end and economy based customers as well. This will be helpful for the company to gain a huge customer base that will be able to increase the levels of revenue and profitability in the competitive automobile based industry (Gengler and Mulvey 2017).
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10CLIENTS AND MARKETS ANALYSIS References Ace-ev.com.au 2019.ACE EV Group Electric Vehicles. [online] ACE-EV Group. Available at: https://www.ace-ev.com.au/ [Accessed 31 Mar. 2019]. Andaleeb,S.S.,2016.MarketSegmentation,Targeting,andPositioning.InStrategic Marketing Management in Asia: Case Studies and Lessons across Industries(pp. 179-207). Emerald Group Publishing Limited. Barton, L., 2015. Active Positioning: The Importance of Relevancy.Journal of Marketing Perspectives Volume I, p.48. Choi, C.S. and Kim, K.H., 2015, June. Marketing management in social network platforms: segmentation, targeting, and positioning. In2015 Global Fashion Management Conference at Florence(pp. 97-102). Dibb, S., 2017. Changing times for social marketing segmentation. InSegmentation in Social Marketing(pp. 41-59). Springer, Singapore. French,J.,2017.Theimportanceofsegmentationinsocialmarketingstrategy. InSegmentation in social marketing(pp. 25-40). Springer, Singapore. Gengler, C.E. and Mulvey, M.S., 2017. Planning pre-launch positioning: Segmentation via willingness-to-payandmeans-endbranddifferentiators.JournalofBrand Management,24(3), pp.230-249. GREEN, M.C.K. and WARREN, J., 2019.GLOBAL MARKETING. Pearson. Klein, T.A., 2016. Exploring the ethical and societal implications of market segmentation and targeting:Macromarketinganddistributivejusticeperspectives.SocialBusiness,6(2), pp.109-124.
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