4 Different Target Market Segments: Their Attitude Towards Life

The assignment content discusses different target market segments, including Green Conscious, Economical, Family, and Stylish. The selected segmentation approach is an appropriate one because it helps in understanding the differences between these four groups clearly based on their attitude towards life. The table provided gives a detailed profile of three target market identified above: Green Conscious, Economical, and Stylish. The assignment also discusses marketing mix strategies for each target market segment from the perspective of an auto manufacturer. Finally, Nissan Micra has been chosen as the primary target market for the 'Economical' consumer group.

Marketing Assignment
Marketing Concept, SWOT, & Segmentation and Positioning
Name: [________]
Enrollment Number: [________]
Date: [_______]

Table of Contents
1.1 Marketing Concept................................................................................................................................2
A. Marketing Philosophy and New-era Orientation.................................................................................2
B. Marketing Value and Marketing Mix...................................................................................................2
C. Ethical and/or Social Issues.................................................................................................................3
1.2 SWOT Analysis.......................................................................................................................................4
A. Internal Environment Factors and Marketing Mix Implications..........................................................4
B. External Environment Factors and Marketing Mix Implications..........................................................4
C. Important Internal Environment Factors.............................................................................................5
1.3 Segmentation & Positioning Concepts...................................................................................................6
A. Segmentation Approach and Justification...........................................................................................6
B. Target Market Identification and Profiling...........................................................................................6
C. Marketing Mix Strategies....................................................................................................................6
D. Target Audience for.............................................................................................................................6
E. Car Brands/Models Positioning...........................................................................................................6
F. Positioning Maps.................................................................................................................................6
References...................................................................................................................................................7

1.1 Marketing Concept
A. Marketing Philosophy and New-era Orientation
The company that has been selected for the analysis is Samsung, which is a multinational
conglomerate from South Korea. Headquarter of the company is in Samsung Town, Seoul.
The philosophy behind marketing concept is that the company should understand the need of the
customers and then devise methods that can fulfill these needs appreciably well in comparison to
the competition. Samsung has been customer oriented for number of years and almost all its
products are targeted towards the customer and address one or multiple need of the customers.
Price, product, distribution and promotional strategies implemented by the company are in
accordance with the need of the customers.
The pricing strategy of the company follows “Skimming” most of the time. It launches
smartphones with high price points and gradually reduces the price sighting the activity of the
competitors. Moreover, the company has successfully implemented new-era strategies that are
venturing towards web to attract the consumers who are present on the online medium. The
company has adopted most of the modern strategies to touch all the points where there is
possibility of the customers interacting with the company in any manner.
It can be stated that the company truly follows significant part of marketing philosophies and has
adopted most of the new-era marketing tools and techniques to attract the customer groups.
B. Marketing Value and Marketing Mix
If the products and services of the company are taken into consideration, particularly the
smartphone segment, then it can be stated that the company provides four types of value to the
customers, namely, practical value, perceived value, social value, and identity value.
The features available on the Samsung smartphones provide practical value (utility) to the
customers. Moreover, the company has a well-established brand value in the market and,
therefore the customers gain perceived value from the Samsung smartphones. The purchases of
Samsung products make the customer feel that they have made good purchase decisions. Most of

the high end Samsung smartphones fulfill the social value of the customers as they feel proud
and prefer to show off their phones in public. However, as per identity value is concerned, the
Samsung brand associate less with the customers in comparison to its direct competitor Apple.
Mentioned below are some of the marketing mix decisions made by Samsung to create the
aforementioned value:
Product: The product development has been robust in the last few years (performance wise)
which establishes the brand strongly in the market. Product problems are rare and after sales
service have ensured instant product replacement or error correction.
Price: Normally follows “Skimming” price strategy, but only for the products whose prices can
be managed. Smartphone pricing are always based in accordance with the competition and their
timing of product launches.
Distribution: Samsung utilizes modern retail (e.g. Croma, Hypercity, etc.) and distributors to
reach the consumers. Samsung is valued among customers, therefore becomes mandatory (in a
way) for retailers to keep the store sale going.
Communication: Samsung actively uses online and offline medium to reach the consumers.
Push and pull strategy are used simultaneously by the company.
C. Ethical and/or Social Issues
The two ethical issues that were faced by Samsung are Illegal Labor Practice (China): In 2012,
the investigation of Samsung’s manufacturing plant in China led to the revelation about the
working hours of employees (normally 16 hours) and employment of child labors; Samsung’s
“fanboy” Factory: Samsung lures (using foreign trips and gifts) bloggers from around the world
who are die-hard fan of Samsung to get them write about its products without mentioning about
the endorsements which is illegal under Advertising Standard Authority rule 2009.
The company should consider the long term impact of such activity on its brand. Things will
come out (gradually) and it may impact the way company is seen among consumers. Only the
consideration by the Samsung can be the solution (which does not seem to be working currently).

1.2 SWOT Analysis
A. Internal Environment Factors and Marketing Mix Implications
Mentioned below are the six factors of internal environment (Strengths and Weaknesses) of
Mega Bloks and their implications on Marketing Mix:
1. Strength: Mega Bloks has license for Production of Barbie, Power Rangers and other popular
characters.
Implications: This helps the company to differentiate itself from the competition and built brand.
2. Strengths: Company has strong distribution networks in more than hundred countries.
Implications: It allows the company to ensure that the demands are met on time and customer
feedbacks are taken periodically regarding the products and services.
3. Strength: Presence of wide variety of product types to attract different interest of kids.
Implications: It allows the company to target large number of target market.
4. Strength: Company has strong brand presence in various countries.
Implications: It allows the company to introduce new products in the market successfully.
5. Weakness: The prices of Mega Bloks products are high due to the quality products.
Implications: Customers looking for cost-effective look for local cheaper alternatives.
6. Weakness: Mega Bloks is limited to certain product categories such as developing bricks (in
most part and some licensed characters).
Implications: Limits the company in targeting other kids segments such as video games, etc.
B. External Environment Factors and Marketing Mix Implications
Mentioned below are the six factors of external environment (Opportunities and Threats) of
Mega Bloks and their implications on Marketing Mix:

1. Opportunity: Company can use the licensed characters to reach the market and acquire some
more licenses under its brand.
Implications: It will allow the company to increase its product range and attract more customers.
2. Opportunity: Company can venture into movies to gain popularity like LEGO.
Implications: It will allow the company to improve the brand name.
3. Opportunity: Company can expand its manufacturing bases to emerging market such as
India, etc.
Implications: Low cost labor of these countries will allow the company to fight in pricing with
competition such as LEGO.
4. Threat: The presence of competition (such as LEGO and local manufacturers) is impacting
the company’s success.
Implications: It prevents the company to enter into the market where LEGO or local suppliers
are already prevalent.
5. Threat: Video Games, Cartoon, and internet games are major threats at present.
Implications: Kids are orienting more towards these and thus overall bricks market getting
impacted.
6. Threat: Governments around the world pushing companies towards environment.
Implications: Effort to go green would be costly for the company.
C. Important Internal Environment Factors
The first important internal environment factor is “Licensed Characters” that help company get
positioned differently than competition without fear of copy products. The second is distribution
that allows strong outreach. The third is price concern (weakness) which needs to be handled by
opening more production houses in low cost countries to beat the competition. The fourth is
limitation to product variety which needs to be improved. It restricts company from other market
segments and impacts profitability. It also increases dependability on limited number of products
and target market that can impact the company’s sustainability in the long run.

1.3 Segmentation & Positioning Concepts
A. Segmentation Approach and Justification
The automobile market Canada produces various types of vehicles whether it is light vehicles or
heavy vehicles. Light duty vehicles are vans, cars, and others, and the heavy duty vehicles
include school buses, trucks, military vehicles, and others.
The major approach that has been considered for the segmentation of the market of the Canada’s
automobile industry is psychographics.
The Psychographics is concerned with the way individuals prefer to spend their life, that is,
social class they consider to live with, the lifestyle they adopt, and their personal opinions and
personality. There are various companies in Canada that manufactures the vehicle considering
the way people prefer to spend their life.
Mentioned below are the four different target market segments that has been developed using the
approach:
1. Green Conscious: These people prefer to live their life devoted towards the sustainability of
the planet and therefore prefer products that are supportive to the environment. The lifestyle of
these people is simple and can include any income age group.
2. Economical: These people prefer to live simple lives and try to save as much as they can.
Their needs are limited and they rarely look beyond the utility of any product.
3. Family: They are family oriented target group and make purchases that support the whole
family at once. Most of the purchases are oriented towards the whole family and not the single
individual.
4. Stylish: The stylish target market look for vehicles that are trendy and in fashion. These people
prefer flaunt their stature in the public and, therefore purchase high end cars that are different
from the normal market.

The selected segmentation approach is an appropriate one because it helps in understanding the
difference between all these four groups clearly. The difference is in the way they take their lives
and things around them. Their attitude towards lives (one of psychographic elements) shows the
clear difference among them.
B. Target Market Identification and Profiling
The table given below shows the detailed profile of the three of the four target market identified
above:
Green Conscious Economical Stylish
Who are they? Age Group: Above
25/ Male and Female
Age Group: 19 years
to 25 years and
Retired Individuals/
Male and Female
Age Group: Above 45
years/ Male and
Female with
substantial wealth
What they look for? Small and Medium
Sized vehicles
Low cost vehicles,
Smaller in size
Any size
Where they look
for?
At the local dealers
within new and used
auctions and online
orders
At the local dealers,
At auctions of new
and used cars, online
offer stores, auto-
trades
Dealerships; New
Purchases; Custom
Made
When they look for? Occasionally Occasionally At period of 3-4 years
Why they look for? Reliable product and
environment friendly
Saves cost, provides
value for money,
reliable product, and
full utility
Stylish, comfortable,
and reliable
How they look for? Try to find personally,
influenced by close
relatives and friends
through word of
mouth and from
opinion leaders,
See other customer
reviews and personal
opinions
Personal Influence

through ads, and other
buyers’ review
What brand they
prefer?
Honda, Toyota, Tesla,
Nissan, Chevrolet
Toyota, Hyundai,
Ford, Honda, Mazda,
etc.
Lexus, Porsche,
BMW, Infinity, Benz,
etc.
What dimensions
they look for?
Electric, Less fuel
consuming, less
emission, or hybrid
vehicles
Vehicles of less cost
and efficient in fuel
technology
Branded, Stylish, and
Comfortable
Where are they
located?
Urban areas and Rural
areas
Mostly in Urban areas Urban and Rural areas
What benefits they
look for?
Electric, Less fuel
consuming, less
emission, or hybrid
vehicles
Vehicles of less cost
and efficient in fuel
technology
Branded, Stylish, and
Comfortable
How frequently they
use?
Almost Daily Almost Daily Occasionally
What is the current
trend*
Currently demand
moving forward
Demand is steady Demand relatively
stable usually
What is the size of
the segment?*
(Estimated)
10% 39% 2%
*Assumptions that need to be tested with research.

C. Marketing Mix Strategies
Mentioned below is the marketing mix strategy table for all these three target market segments
from the perspective of an auto manufacturer:
Green Conscious Economical Stylish
Product Hybrid Cars Small size, low priced
vehicles with long run
High Quality Luxury
Vehicles
Place (Distribution) Connecting with local
dealers and taking
part in auction of new
cars
Same as Green
Conscious consumer
group
Dealers and
Showrooms
Price Above economy cars
as these set of
customers can spend
more on green cars
Lowest in the segment High (Should reflect
status)
Promotion
(Communication)
Social medial, local
newspaper, and target
or incentivize major
opinion leaders
Additional offers,
local ads,
incentivizing major
opinion leaders
High Class
Magazines, Social
Media
D. Target Audience for
Nissan Mirca ($9,988) has been chosen for marketing to the ‘Economical’ consumer group
(primary target market). The first reason is the extensive size of this target market (39%*) which
will allow substantial sale even with the presence of other competitors.
E. Car Brands/Models Positioning
The selected target market is ‘Economical’ consumer group and the three brands are Nissan
Micra ($9,988), Chevrolet Spark ($9,995), and Mitsubishi Mirage ($12,698). These three models
are targeted to the Economical consumers as they are cost effective, quality products, and
convenient to drive. In comparison to the other brands, these products are of more quality,
known to people, and most rated products in fuel and price savings.

F. Positioning Maps
High Price
Low Price
High QualityLow Quality
Nissan Micra
Chevrolet Spark
Mitsubishi Mirage