This document discusses the concepts of segmentation, targeting, and consumer behavior in marketing. It explores the B2C and B2B targets and their buying behavior, focusing on the ACE Yewt and ACE Cargo products. The document also highlights the features and potential uses of these products.
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Running head: MARKETING CONSUMER BEHAVIOUR Marketing consumer behaviour Name of the Student: Name of the University: Author Note:
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1MARKETING CONSUMER BEHAVIOUR Contents Segmentation and targeting.............................................................................................................2 Segment evaluation..........................................................................................................................3 B2C target........................................................................................................................................6 B2B target........................................................................................................................................7 Positioning and customer behaviour................................................................................................9 Reference.......................................................................................................................................10
2MARKETING CONSUMER BEHAVIOUR Segmentation and targeting Segmentation, targeting are the highly acclaimed strategic approach in the present day modern marketing. It is important to mention that segmentation and targeting are the most commonly applied models of marketing that are in practice. The model is used in the creation of themarketingcommunications,whileithelpsintheprioritisingthepropositionsand subsequently delivering relevant and personalised messages. This helps ion engaging with the different kinds of customers. The segmentation and targeting are the audience centric rather than the product centric approach of communications. This model helps in delivering relevant messages to the audiences that are commercially appealing (Gengler & Mulvey, 2017). Market segmentation involves the identification of the bases for the segmentation; determination of the vital characteristics of each of the market segment. Market targeting includes the evaluation of the commercial attractiveness and the potential attractiveness of each of the segments; selection of the one or more segments. The B2B segmentation involves the firmographics segmentation, value-basedsegmentationandneedsbasedsegmentation(Pyo,2015).WhiletheB2C segmentation includes the psychographic segmentation, behavioural segmentation, geographic segmentation and demographic segmentation. Customer segmentation analysis is conducted by an organisation and it they can divide the customers based on the different attributes and factors. This leads to the creation of the precise customer groups. Thus, customer segmentation helps in enabling a brand or a craft that are based on the individualized marketing messages that are suited and appropriate for each segments. While targeting the customers involves the strategies of the company and the ways through which they can target more consumer of other business entities (Aithal, Shailashree & Kumar, 2015). Different kind of marketing tactics are used for both the B2C and B2B. Although it is important to mention that the publicity, promotions and
3MARKETING CONSUMER BEHAVIOUR advertising are all the same. If the final customer is a customer, then the marketing will be based on the emotional satisfaction and price of obtaining the product. If the final customer is a business then the marketing message will be entirely based on the trust, service and value (McGarvie, 2019). Segment evaluation B2C- The product selected under this category is the ACE Yewt. According the official website data, the ACE Yewt is can be used by the common people if they want a big boot space for carrying and transferring small cargo. Whereas, the other customers can be couriers, home nurses, caterers, aged care providers, catering companies, florists and news agencies, government agencies, pathology transport (McGarvie, 2019). B2B- the product selected in this category is the ACE Cargo. According to the official website data, the ACE cargo can be used by couriers, home nurses, caterers, aged care providers, catering companies, florists and news agencies, government agencies, pathology transport (McGarvie, 2019). Market segmentation for the ACE Yewt and ACE Cargo will be entirely based on the type of the customers and the purposes it will be serving. Here, the main focus for segmentation will be the clients and the markets. While it is important to mention that both the electric vehicles have the similar type of price brackets and the similar type of design. However, Ace Cargo has a hatchback design and the Ace Yewt has a tray back design. The product has been designed by a Queensland start- up called the ACE EV and this company plans to revive the car industry of Australia (inverelltimes.com.au, 2019). Both the vehicles cost just 40,000 dollars and it is considered to be one of the cheapest electric cars in Australia. The ACE EV team has used the
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4MARKETING CONSUMER BEHAVIOUR carbon fibre body panels and glued them together to cut the cost and also make the vehicles lightweight. Both the electric vehicles ACE Yewt and Ace cargo car has a battery pack capacity of 23.2 KWh. Both the vehicles can a maximum payload of 500kg and have 2 seats at front. However, one of the major differences between the two vehicles is in term of the size variance. The ACE cargo has a height of 1760 mm while the ACE Yewt has a height of 1690 mm. Thus, this signifies that there is a height variance and this will provide different kind of the customer demand (aph.gov.au, 2019). From a report published by Climate Works Australia, the consumer attitudes have been able to highlight. Thus, it is important to mention that an important feature of the electric vehicle is their inherent capacity to reduce the emission of the green house gases. Surveys were conducted and the respondents were asked what they will consider while buying a new electric vehicle. Majority responded that they will think about charging the electric vehicle and along with- it majority of them also highlighted that they will source the electricity from the normal electricity grid. The rise of the electric vehicles in the past decade is incredible and in comparison, to the international electric markets, Australia is somewhat lagging behind when it comes to the consideration of electric vehicles (Reedman et al., 2018). It is important to highlight that there is only 4000 of the electric vehicles that are running on the roads of Australia. Thus, this provides a ripe opportunity for the ACE EV company to step in and become a pioneering Australian Electric vehicle company. The ACE EV vehicles will be sold along with a charger and an app. This app will allow a person to charge the vehicle if they have a charging station at their home and others too can use the same charger to their ACE EV vehicle as well. Both the electric vehicleswere designed as the urban light commercial vehicle. According to the Managing Director of ACE, both ACE Yewt and ACE Cargo are designed for the light
5MARKETING CONSUMER BEHAVIOUR commercial sector. Both the vehicles have a payload of 500 kg and the vehicle has a total range of 350 km. This will be perfect for a wide range of urban oriented businesses ranging from couriers to tradies to caterers. These vehicles deliver economical transportation, efficient and low- cost transportation as well. Moreover, these electric vehicles can also be a potential source of income for the owners. The future models can also be used as a power source for the homes. The Managing Director of ACE of ACE has mentioned that the company will not set up any traditional distribution networks. The customers will be able to purchase the vehicle online (Rafique & Town, 2018). Therefore, both the electric vehicles have a potential base earning and transporting and delivering the cargo. Both the vehicles can be used by the customers themselves to transport cargo from one place to another and one the other hand both the electric vehicles can be used by thebusinessentitieslikecouriers,homenurses,caterers,agedcareproviders,catering companies, florists and news agencies, government agencies, pathology transport. The products itself can play a diverse role towards the cargo delivery and also provides the option for earning from the delivery of the cargo (Zhang et al., 2014). These two products only differ in their heights and thus this has provided and extra bit of option for the buyers to either consider the hatch back model or the tray back model. Both the model serves the need of the customers due to their similar range of 350 km. The 350 km is sufficient enough to transport and deliver cargo form within the city limits. Along with the two-door option, one passenger and one driver can easily travel with the cargo (Jing et al., 2018). The hatch back provides the extra option of concealing the cargo while the tray back provides other types of advantages. The tray back option will provide the customers to load cargo that are bigger the height of the ACE Cargo. Both the vehicles have their own benefits along with their own disadvantages. Considering the
6MARKETING CONSUMER BEHAVIOUR market of the electric vehicles in Australia, it is high time that ACE EV have stepped in. The customers will be delighted to have an extra option of buying a home- grown electric vehicle that will again contribute to the overall reduction in carbon emission. Segmentation is not possible due to the similar kind of design and specification and the managing director himself iterated that the vehicle is a urban light commercial vehicle (Kara, Li & Sadjiva, 2017). B2C target The product that falls within this category is the Ace Yewt. For this typical product the niche customer product will be the customers that are based on the delivering small cargo from one point of the city limits to another, customer that are willing to buy a tray back small electric car that can help in taking a small amount of cargo and serve the daily needs of transportation. Thiscanalsobeusedbythecustomerstotransportsmallamountofcargofromone neighbourhood to another (Dyer, 2019). Thus, gardeners, farmers and nurseries can effectively utilize the potential of this products. The rationale for selecting the ACE Yewt as a B2C because to some extent the product is deigned in a way that could have potential benefits from the customers. The managing director of the ACE has emphasized that the ACE Yewt is an urban light commercial vehicle. Therefore, the products can be used for personal purposes, while at the same time it can also cater to the needs of the small transportation. The ACE Yewt is a tray back car and company has stressed to mentioned that the car is designed for commercial purposes (Dyer, 2019). When it comes to the consumers, it is important to mention that the buying behaviour of the consumers can be related to the model of consumer decision making process. This model or thetheoryhighlightsthattheenvironmentalandmarketingstimulientersintobuyer’s consciousness. Due to this the buyer’s decision and the characteristics of the decision leads to
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7MARKETING CONSUMER BEHAVIOUR certain purchase decisions (Shim, Shin & Kwak, 2018). Therefore, it is important to mention that the buying behaviour is generally influenced by the psychological, social, cultural and personal factors. The ACE Yewt is a sort of the small commercial car or electric vehicle that will not be desirable to the high class and wealthy people. Rather than the middle-class people that is aiming towards earning money by potentially using the vehicle to transport cargo across the cities is a good option. Thus, it can be said that the farmers, nursery owners and gardeners and cargo transporters will definitely look for this product (Wang & Yu, 2017). Furthermore, the personal factors also play a big deciding factor in buying this electric vehicle. It is important to mention that the ACE Yewt is a tray back commercial electric vehicle and buying it entirely depend upon the person choices and personal needs. One can easily use it for commercial purpose and or it can also be used for personal use. Moreover, psychological factor will also play a role because an electric vehicle will have zero pollution and the range of the electric vehicle will act as a psychological factor before this product. Thus, the ACE EV can effectively advertise and promote ACE Yewt in a way that will influence the customers and target the three factors namely psychological, social and personal. This model of buying behaviour will help in analysing the consumer market and the marketing strategies can be formulated based on this facts and factors in mind (Faulds et al., 2018). B2B target The product that falls within this category is ACE Cargo. The ACE Cargo is a unique product that can be targeted to be used by couriers, home nurses, caterers, aged care providers, catering companies, florists and news agencies, government agencies, pathology transport. The product has a hatchback that can be used for the transportation of concealed cargo and it has a range of 350 km which justifies its purpose of urban light commercial vehicle. This vehicle can
8MARKETING CONSUMER BEHAVIOUR easily perform the vital tasks of transporting cargo from one place to another within the city limits and also without polluting the environment. This product is selected into the B2B segment because this product will be effectively used by the companies for the purpose of cargo transportation (Dyer, 2019). To assess the organizational buying behaviour, the model selected for this assessment is the stagesin decisionmakingprocess. Underneaththismodel, forcesthatinfluencethe organizational buying behaviour will be analysed. The forces involve four major stages or factors and it includes the environmental level of demand, organizational, interpersonal and individual factors. The external environmental factors play a decisive role and it includes the competition, socialenvironment,politicalenvironment,regulatorychangesandeconomicconditions (Marshall et al., 2016). Considering the fact that Australia is slowly moving towards having zero pollution and transport sector alone contributes to the large amount of green house gas. Therefore, the introduction of the electric vehicles into active transportation will greatly reduce the greenhouse gas emission. This is a positive step forwards for the companies. The political environment is slowly inclining towards the introduction the electric vehicles. Thus, it is important to mention that there is a lot the political environment will also play a key role into embracing the electric vehicles by the companies. The internal organizational factors will also contribute to the decision- making factors like the manpower skills, technological levels, policies and procedures, organizational structure and organizational objectives and goals (McCabe, 2015).Theorganizationalgoalsmightactasfactortowardsusingtheelectricvehicles. Procedures and policies of the companies can also a major role by emphasizing on the creating less pollution and minimizing the actions increase the environmental pollution. Considering the technological level, companies might look at their present status and also look forward to
9MARKETING CONSUMER BEHAVIOUR upgrading to the latest technological that can benefit companies in the long run (Defty, Xiao & Iyer, 2015). Both the individual and the interpersonal factors focusses on the individual factors, risk taking ability of the companies, awareness and education, interpersonal conflict, authority and participation. Since it is important to mention that the decisions of buying are obviously not a one- person affair. There are obviously the pre-defines rules set for buying the new and it is the responsibility of the of the proper authority. The individual factors can range from the members present in the buying team, social status, cultural background and age of the people (Turka & Sasan, 2015). Positioning and customer behaviour Positioning is the final step in the STP process and this step provides a vital insight into how the final product will be placed and how the target segment can be attracted by using the marketing strategies. Here, customer behaviour will play a vital role into determining the exact positioning of the product. Understanding the consumer behaviour, the product characteristics can then be pitched to those sections of consumers that genuinely need such a product. Thus, effective placement of a product will require effective understanding of the customer needs (O’Flaherty& Heavin, 2015). Product positioning starts with the identification of the niche segments that can be targeted. Moreover, the psychographic and the demographic attributes of the customer needs or behaviour can effectively signal the marketers to understand the needs of the customers. This effectively relates to the products that services that the ACE EV will offer and this will covey value as a vital part of the marketing plan.
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