Clients and Markets: Segmentation, Targeting, and Customer Behavior

This document discusses customer segmentation, targeting, and behavior in B2C and B2B marketing. It focuses on Ace Yewt-ACE-EV Group and their marketing process for electric vehicles.

Running head: CLIENTS AND MARKETS
CLIENTS AND MARKETS
Name of the Student
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Table of Contents
Introduction......................................................................................................................................2
Segmentation and targeting.........................................................................................................2
Discussion........................................................................................................................................3
Segment evaluation......................................................................................................................3
B2C Marketing........................................................................................................................3
B2B Marketing........................................................................................................................4
B2C Target...................................................................................................................................6
B2B Target...................................................................................................................................7
Positioning and customer behavior..................................................................................................9

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Introduction
Segmentation and targeting
Customer segmentation is the process that helps in differentiating the customers into
specific groups that may be targeted. Customer segmentation can be done by assessing four
factors like psychographic, demographic, behavioral and geography. Psychographic
segmentation classifies the market on factors such as values, social class, personality and
lifestyle. The next is Demographic segmentation is categorizing the market on the basis of some
characteristics of the consumers. They are characterized on the basis of age, race, gender,
income, religion, occupation, ethnicity marital status and education but not limited to these
aspects. The behavioral segmentation basically categorizes consumers according to attributes
like awareness, knowledge, likings, usage, purchase patterns and loyalties (Saleem, Eagle &
Low, 2018). Geographic segmentation is dividing a target audience based on their location like a
region or any country and also by streets in some town.
Targeting is the next process after segmenting customers. After customer segmentation it
is necessary to choose the best customer after the analysis. On the basis of the analysis of
customer segmentation a target audience is chosen. The company has to assess the potential
growth of the chosen target audience. The last step of the targeting process is to understand how
the company intends to position their product to target the valuable customers (Lessmann et al,
2018). After this the company needs to select a marketing mix that is going to be effective for
everyone.
Customer segmentation and targeting are both important for B2B and B2C
marketing.B2C is selling products directly to the consumers and B2B is the process of selling

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products to other businesses. In both these type of marketing customer segmentation and
targeting play a vital role. Customer segmentation is essential in order to sell products to the
customers directly. According to the target audience the products advertise and promote their
products for generating revenues. These are important in B2B marketing as well. It is necessary
to assess the size of the business, role and industry to see selling products in which business can
be beneficial.
This paper is going to talk about the company Ace Yewt-ACE-EV Group and their
marketing process.
Discussion
Segment evaluation
Ace Yewt-ACE-EV Group is a company that manufactures electric vehicles. The
company caters to the general market. Electric cars are becoming popular however the growth is
slow. It started with a mere 0.2% and is expected to take a leap of 6% by 2025.
B2C Marketing
Customers segments are generally categorized by assessing four factors. The Ace Yewt-
ACE-EV Group has to assess factors and set a target audience for them. Electric vehicles are
relatively new to the market and the customers are still not aware of the new vehicles that are
being manufactured. The customer segmentation for the company will be urban people of high
income groups and people who are conscious about the environment. Customers having a white
collar jobs are a suitable target audience and also millennial. Here the customer has been
segmented by certain factors like demographic, behavior, psychology and by the geographical
area. The usages of vehicles are more in urban areas compared to rural areas. In urban areas

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people need vehicles for their personal work. Urban people will be interested in buying electric
cars because of the safety improvements that are offered due to low center gravity compared to
other vehicles. These cars are less likely to have major explosion. The cars are expensive
however the maintenance and the running costs are cheap (Tsai, Hu & Lu, 2015). The cars will
be available in Australia in cities urban cities here urban people are tea in target audience as they
have jobs that pay them well which indicates that they are the ones who will be able to afford the
expensive cars. Currently the electric vehicles are expensive because of the advanced technology
and the batteries that are provided so that the cars can cover long distances. Electric vehicles are
eco-friendly and necessary in today’s time. The effect of global warming has paved way for
products and vehicles that run on batteries and solar energies (Rafique & Town, 2018). People
are becoming conscious and want a healthy environment. The Ace Yewt-ACE-EV Group
manufactures vehicles that are made of eco- friendly materials and is used by renewable energy
that helps in reducing the emission of greenhouse gases (Holland, 2015). These vehicles are not a
threat to the society as they do pollute the environment thus these vehicles are preferred by
people who are conscious about the environment. Customers consider the cost of the products
while purchasing these days (Degirmenci & Breitner, 2017). However the vehicles by the
company Ace Yewt-ACE-EV Group is expensive but it is a onetime investment and then people
are going to save money when they buy the vehicles (Wolske & Stern, 2018). These factors
influence the buyer behavior of the urban customers and the millennial. The electric vehicles are
sustainable that is another concern of customers while buying vehicles. The usages of vehicles
by the urban people are at a very high rate and thus the target audience is chosen in urban
countries.

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B2B Marketing
B2B marketing is promotion of services or products to some other business. The Ace
Yewt-ACE-EV Group’s target audiences in B2B context are going to be retailers and suppliers.
The company has introduced cargo van that is spacious and will be beneficial for retailers and
suppliers.
Segmentation on the basis of the company- The Ace Yewt-ACE-EV Group segments the
company by the annual revenue and by the number of employees. The company has also
segmented the company on the basis of the position and the place the company is located in.
Retailers and suppliers generate a good amount of revenue.Here the essential factor that is
considered that the customers here might repeat the purchase after a long time.
Segmenting on the basis of tiering- Here the segmentation is categorized on the basis of how the
customer matches the goal of a business. The main goal of the company is to generate revenues
by selling electric vehicles in the market, to promote healthy living and to reduce fossil fuel. The
suppliers and retailers might do business with the company as the vehicles will help in reducing
the cost as the vehicles are of low maintenance. The business will want to associate themselves
with a company that manufactures eco-friendly vehicles that promote welfare of the society and
garner positive reputation in the market as to becoming the companies who work for the
betterment of the environment.
Segmenting on the basis of the needs- Electric vehicles is a new product in the market that is
garnering a lot of appreciation in helping to reduce pollution in the environment and for the
features that are being provided. These vehicles are one of the most important inventions in the
market due to global warming and the increase in pollution in the environment. The vehicle does
not need any fuel or gas rather runs on batteries that need to be charged which does not need a lot

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of money but needs time (Madina, Zamora & Zabala 2016). The audiences here are the suppliers
and retailers. The suppliers and retailers do most of the business by supplying their products. For
that they need transportation that will help them distribute their products. The cargo van
manufactured by the company is going to be beneficial for the company. The products can be
easily transported and help in reducing the transport cost. The electric vehicles are expensive but
that will be a onetime investment for them and the expenses later of maintenance are low and the
company does not have to pay for fuels or gas (Thaler, 2016). The retailers and suppliers will
need a transport like this that will be transporting products efficiently and will help in reducing
cost that will be beneficial for them. They will also help the environment by reducing pollution
to acquire a good reputation the market that will help the company to have strong foothold in the
market. This will also help in maintaining a positive relationship between both the companies so
that both generate profitable revenues.
B2B buyers purchase rationally when compared to the customers. Consumers will buy
products or services if they want but in B2B they will buy on the basis of their needs and
requirements that eventually benefit them.
B2C Target
Customer segmentation helps in building a target audience. By evaluating the factors of
customer segmentation the details help in assessing the target audience to whom the company is
going cater and look to the needs. The company marketing team will come up with marketing
strategies to attract the target audience and to make them aware of the features and the products
that will help in making the customers go buy the product. After analyzing the segmentation the
target audience that the Ace Yewt-ACE-EV Group will cater to will be people with white collar
jobs with high income. Concerned people, who care and have knowledge about the effects of

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pollution in environment (Purnell, 2016). The target customers for this company are people with
a high income group because the vehicles of this company are expensive in the market and not
everyone can afford it. People residing in the urban area are the target audience of the company.
People who reside in urban areas use more vehicles compared to people in the rural areas. The
people in urban areas are more educated and understand the problems and effects of an unhealthy
environment due to the emission of harmful gas from other vehicles (Nguyen, Lobo &
Greenland, 2016). People living in the urban area might take notice and want to contribute to
save the environment by using electric vehicles. The target customers are both male and females
who can drive. The target audience age group varies from 18 years to 40 years of age. This is the
specified target group as electric vehicles are a bit complicated for people beyond 40 years of age
who have already been accustomed to the traditional cars that were in the market and not want to
change their vehicles. It will become difficult for them to charge the vehicle and create a hassle
(Wolbertus, 2018).
The buying behavior of the customers may fall into the category of cultural theory of
buying behavior. The beliefs and value of the customers will lead them to buy the product so that
they can contribute in helping save the environment (Hendricks, 2018). Social class that is based
on the occupation and income helps in influencing customers to buy a product. Here the
consumers are rich and work mainly in managerial posts. They can afford the vehicle that is
manufactured by the company Ace Yewt-ACE-EV Group. Families and friends also have a vital
role to play when influencing people. Here the family members of the customers or friends may
have a major role to play in influencing the customer (Ramya & Mohamed Ali, 2016). Friends
can own electric vehicle and give positive reviews thus influencing the customer to make a
purchase (Hardman & Tal, 2016).

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B2B Target
After analyzing the customer segmentation the target audiences chosen for the company
Ace Yewt-ACE-EV Group are the retailers and the suppliers. The retailers and suppliers of
Australia as the company is an Australian company. The retailers and suppliers of companies
that do not have very heavy products that need to be transported. For the time being it will
mainly cater to the local retailers and suppliers. The local suppliers and retailers will not have to
transport products in bulks at one go thus this will help them buy the electric vehicles. The
company has manufactured a Cargo Van that will help the local retailers and suppliers. The
Cargo Van is perfect and has the ideal size to fit products that need transportation in the local
market. The local retailers and suppliers should have a good profitable business to afford the
vehicles as it is very expensive. The companies should have efficient employees that may make
better deals while purchasing the vehicles. The relationship between the potential companies
with whom the Ace Yewt-ACE-EV Group may market to should be healthy and positive. The
relationship among B2B customers should be strong so that they can do business for a long
period of time. The vehicles that the company is providing is slowly going to take the Australian
market because of the unique features and because of the innovation that will help reduce
pollution and emission of harmful gases and protect the environment specially Australia that is
slowly becoming polluted because of more usages of vehicles and other electronics that are
detrimental to the society.
The buying behavior of the company falls under the generic theory of buyer behavior.
This is the typical type of behavior of the customers when they go buy any product. The main
concern of the buyer here is the need and the requirement. The other thing is that the buyer will
also have other thoughts like how long is it going to serve the purpose and the cost and many
other factors. The retailers and suppliers may only buy the electric vehicle if the one they are

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using is not working or if they are shortage of vehicles for transportation. The electric vehicles
are going to be fruitful for the company in the long run and to the environment. The buyer
behaviors of the retailer and the suppliers are generic. However, the electric vehicles by the
company Ace Yewt-ACE-EV Group serve all the purposes that the retailers and suppliers of the
current local market require. The local suppliers and retailers do not transport products in a bulk
that they will need a truck but the electric vehicle that has been manufactured by the company is
of the perfect size that will fit products and transport efficiently as well. The electric vehicle is
garnering appreciation in the market because it is helping in reducing the harmful gases present
in the environment that is leading to many diseases. The association with a company that cares
about the environment will make a bond between the people and the company and also will make
the local retailers and suppliers popular. It will help them gain a positive and good reputation in
the market that will help them increase their sales. Expenditure is the key factor that businesses
are mostly concerned of. A company does not want to spend money on unnecessary things or the
things that could have been avoided. This electric vehicle will help in saving the cost for the
retailers and suppliers. The cost of the electric vehicle is high and it is expensive in the market
but it does not require any fuel or gas and is low on maintenance. The retailers and suppliers
have to barely spend anything after buying the vehicle. It will become cost efficient for them.
This will create a positive relationship that will pave way for further business in the long run and
also help in the revenues and sales.
Conclusion
Positioning and customer behavior
Electric vehicles are already making a name in the market and ACE-EV Group is not the
only brand that is competing in the market. The company is however an Australian company that

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offers electric vehicles that is very attractive and also sustainable and useful. The company
proposes to make the environment pollution free. The company also states that the materials they
use for manufacturing vehicles can be recycled. The company is eco-friendly and labels it as
value for money.
Customer behavior is important that needs to be assessed. Customers do not like
additional expense. They want to buy expensive products or vehicles only if they are sustainable
and are value for money. Here the electric vehicle justifies the cost as the customers who buy it
wouldn’t have to spend extra for maintenance and fuel prices. The durability and the
sustainability will attract the customers in buying the electric vehicles manufactured by the Ace
Yewt-ACE-EV Group.

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