Segmentation, Targeting and Buyer Behaviour

This document discusses the concepts of segmentation, targeting, and buyer behaviour in marketing. It explains the process of dividing the market into homogenous segments, targeting customers with specific marketing strategies, and understanding the decision-making process of buyers. The document also provides examples of segmentation and targeting in both B2B and B2C markets.

Running head: SEGMENTATION, TARGETING AND BUYER BEHAVIOUR
SEGMENTATION, TARGETING AND BUYER BEHAVIOUR
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Introduction- Segmentation and Targeting:
The procedure of dividing the market from potential group of customers to various
homogenous segments on the basis of specific characteristics is known as segmentation. The
group is divided with the motive of targeting customers with the similar response process in
regards with specific marketing strategies (Camilleri 2018). The customers are targeted on
the basis of differences, accessibility and criteria size.
The b2b market can be divided in various ways, the process includes the identification
of key factors which helps in understanding the base for segmentation. The b2b customer
market can be divided on the basis of industry like health, technology, IT, transport, tourism,
food, public sector and automotive. The segment can be based on a similar geographical
region which reflects similar preferences. Segmentation can also be based on the country or
the spoken language which reflects potential as the cultural background will be similar. The
segmentation based upon the job role or the hierarchy of influencers (ace-ev.com.au 2019).
Company size can be considered as one of the major segment along with the turnover rate.
Behaviour also forms the base for segmentation as well as the customer need identification is
important for the identification of homogenous groups. The segmentation procedure can be
divided into firmogrpahic segmentation, value-based segmentation and need or preference
based segmentation. The targeting process involves the identification of job industry for the
base of targeting, which is termed as vertical targeting. Another process involves the
combination of vertical targeting with the company size and job titles.
The b2c segmentation and targeting process includes the identification of
homogenous groups among potential customers based on the process of dividing the market
based upon demographics, geographical regions, behavioural segmentation and
psychographic segmentation. The characteristic are comprised of descriptive, tangible,

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measurable and intangible in regards with the lifestyle and relationship with products and
service.
Segment Evaluation:
The company selected for this paper is Ace Yewt, which is an Australian electric
automobile manufacturer company. It is known for the purpose of saving energy and
contributing a positive environmental impact on return. The company offers reliable and sae
technological vehicle which is known for ensuring optimal range of energy utilization (ace-
ev.com.au 2019).
The segmentation of Ace Yewt for b2b market can be on the basis of:
 Industry- Healthcare industry, governmental sectors and food sector. The company
will be offering electric vehicles for these sectors and business operating in the
specific industry (ace-ev.com.au 2019).
 Value-based segmentation- The value preferred by the businesses or firms is
considered as the basis of segmenting the potential market (Payne, Frow and Eggert
2017).
 Need-based segmentation- The segmentation base focusses on the preferences of the
business customers. The company is segmenting the market based upon the need such
as transporting pathological equipment, travel requirements of home nurses, courier
facilities as well as for facilitating the catering services of businesses (Payne, Frow
and Eggert 2017).
In terms of the micro and macro segments the company’s process of segmentation includes:
Macro segmentation-
Organizational size- The size of the business or organization will determine the preference of
different vehicle models of the company (Dibb and Simkin 2016). The size will present a

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base of understanding the need and value evaluation of the business customer. For instance,
the size of catering or florist business will identify the requirements for transportation. The
company will be segmenting the market on the basis of its offerings to both SMB (Small and
Medium Businesses) and large scale businesses.
 Industry- Another base of segmentation is the homogeneity depending on the
operational activities operating in a particular industry. The electric vehicle company
of Australia, Ace Yewt will be targeting industries like healthcare industry,
governmental sectors, transportation sector and food sector business (Payne, Frow and
Eggert 2017). For instance the healthcare industry will reflect homogenous needs of
transportation than the governmental agencies.
Micro segmentation-
The micro segmentation criteria can be divided in following segments:
 Choice-based segmentation- The choice and preference of the customers can be
considered as the basis for dividing the potential market for strategizing the offerings.
For instance, the choice or preferences of the company for adopting sustainable
approach in the business activities will determine one of the bases of strategizing
offerings to a set of customers (Hall 2017).
 The decision making structure or process of various business will determine the base
of segmenting the potential market in Australia. The decision making hierarchy in the
businesses like the catering business, the courier agencies will determine the
effectiveness of applying a set of strategies by the electric vehicle manufacturing
company, Ace Yewt.
 Organizational innovativeness- The organizational approach for incorporating
innovativeness will result in the base of segmentation for the company (Singh 2018).
For instance the governmental agency’s approach of incorporating innovative

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measures in regards with sustainability can become an opportunity for the electric
vehicle manufacturing company, Ace Yewt to divide the group of customers for
designing effective strategies.
The segmentation of Ace Yewt for b2c market can be on the basis of:
 Demographical segmentation- The segmentation bases of the electric vehicle
manufacturing company can be dependent on factors of age, income and occupation.
The potential customers of the company are the old aged people, home nurses and
caterers, which reflects the dependency of the bases on age and occupation identities
of customer groups. The vehicles produced by the company will be affordable than
the competitor like Tesla. The segmentation process will also be based upon the
income capabilities of customers.
 Geographic segmentation- The geographic segmentation will be based on the country,
where the vehicle will be assembled, Australia. The cultural background and
preferences for responding to the concern of pollution and climate change in
Australia, reflects homogeneity in the potential customer group market (ace-
ev.com.au 2019).
 Psychographic segmentation- The lifestyle, values and opinions of the customers are
considered as the base by the electric vehicle manufacturing and assembling company
of Australia for dividing the potential customer base on the basis of lifestyle
preferences of customers (Venter, Wright and Dibb 2015). The preference of selecting
a sustainable lifestyle will include the opportunity of strategizing offerings based
upon the energy efficient approach of the vehicles.
 Benefit segmentation- The approach divides the potential consumer market on the
basis of consumers seeking specific benefits from the accessible products and services
presents an opportunity for the EV company Ace Yewt for strategizing the benefits

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like energy efficiency, fast charging features, the electric power assisted steering
facility, the controlling feature for hill hold and the facility of EPS system.
 Behavioural Segmentation- The EV company, Ace Yewt segmented the market based
on the behavioural patterns of consumer segments such as brand or category
switching likelihood, the brand perception of the consumers, the need or preferences
patterns of customers as well as the perception developed in case of an occasion of
frequency determination.
B2C target description:
The niche customer segment which can be focussed on is-
Psychographic segment- The practice of market segmentation which involves dividing the
consumer market in sub-groups on the basis of psychological characteristics, which
comprises of conscious and subconscious belief, priorities in regards with the prediction and
explanation of consumer behavior as well as the motivational factors which influences the
buying pattern of the consumers (French 2017). It helps in determining the decision-making
process or pattern of potential customer segment. It also helps in identifying the personalities,
values, communication preferences, consumer attitude and lifestyle requirements of the
consumer.
The focus of the marketing team on the psychographic segment consumer group can
help the Electric Vehicle Company, Ace Yewt to identify the actual values the consumer
possess. It will facilitate the identification of the pain points experienced by the consumers.
The possible obstacles or hesitation among the customers in regards with the buying decision
can be identified by the company (ace-ev.com.au 2019).
The focus of the EV manufacturing and assembling company, Ace Yewt will
facilitate the company’s strategic objective and orientation of offering a sustainable option of

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transportation, which specializes in optimum utilization of energy sources as well as the
orientation is based with the motive of positive contribution to the increasing concern of
pollution and climate change in Australia. Targeting the lifestyle choices of the customer can
help in offering the core benefits of the products as it will influence the preferences and
consumer buying decision. The values of contributing back to the environment is the basis of
targeting the psychographic group of customers. The distinctiveness features and offerings of
the EV company, Ace Yewt can be used as the influencing factor for targeting the
psychographic elements of the consumers. The distinctiveness of the personality and values
possessed by the consumer group will help the company to have a flexible/customized form
of marketing strategies in order to present an effective form of communication medium for
the consumer. The division of consumer group based on their personality traits, value
possessions and lifestyle choices will determine the stability of offer attractiveness of the EV
Company in Australia. The accessibility in regards with taping the consumer market will
increase with the focus on psychographic segment. The niche market segment of the
consumer base can be based upon the lifestyle preferences of the customers as it will help the
company to channel its unique offerings and features to the target segment (ace-ev.com.au
2019).
Buyer behaviour identifies the reasons associated with the selection of products or
services by a consumer group. Buyer behaviour helps in understanding the process of
decision making involved in the selection or preference of products and services (Akkucuk
and Esmaeili 2016.
The buyer behaviour theories which can be utilized for ensuring the effective
buyer/consumer behaviour based marketing mix are Motivation-Need Theory and Theory of
Reasoned Action. The motivation-need theory of Abraham Maslow depicts the hierarchical
needs. This theory explains that people act in a certain way for the purpose of fulfilling needs

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on the priority basis (Murphy and Dweck 2016). The needs includes physiological needs,
safety needs, love, esteem and self-actualization needs. The need assessment process will
positively impact on the process of constructing/designing communication message (Sirgy
2015). The effectiveness of the marketing mix focus on buyer/consumer behaviour can be
ensured by incorporating the strategical establishment on the hierarchical needs. The EV
company will have to construct the marketing mix strategies depending on the motivational
factors of the consumer in order to satisfy the priorities (Zhao, Libaers and Song 2015). The
electric vehicle company can target the safety and security attributes of the vehicles. The
psychological needs of the potential buyers can be satisfied/fulfilled by offering the core
feature of the company, which is sustainability and energy efficiency. The theory of
Reasoned Action by Martin Fishbein and Icek Ajzen reflected the importance of the pre-
existing attitudes and behaviour for the process of decision making. The consumers are
believed to act in a specific manner with the intention of creating a specific outcome. The
company will have to link the purchase of the vehicles with certain positive implications,
which will have to be specific. The result of a positive environmental contribution as well as
the effective and efficient energy efficiency can be associated with the purchase of Electric
Vehicles.
B2B target description:
The B2B niche segment which can be selected for the marketing team of the company is:
Industry segmentation- The macro-segmentation base can be considered as the crucial
segment which can be targeted in the process of setting marketing strategies. The
categorizing of business and industrial consumers for a base of designing tactical and
strategic decision-making process of companies is known as Industrial market segmentation.
It is a complex form of segmentation process as it depicts the complexities in the buying
processes of consumers in the regards with the difficulty of the products and services

8SEGMENTATION, TARGETING AND BUYER BEHAVIOUR
preferences (Lancaster and Massingham 2017). The main objective of this segmentation
process is to understand the significant differences in the potential and existing customers
which reflects the power of influencing the buyer behaviour or purchase decisions.
Organizational innovativeness and value-based segmentation can also be considered
as the base of segmenting the potential population of consumer as it will present a base for
strategical approach of targeting consumers by the process of communicating the benefits,
features as well as by satisfying the businesses’ strategy of incorporating innovativeness.
By selecting these segments the Electric Vehicle company Ace Yewt will be able to
understand the industry preferences as well as will depict the selection/buying process of the
businesses operating in a specific industry. The Electric Vehicle company is targeting the
industries and/or sector like healthcare, food, services and transportation. The value-based
segment will contribute towards the utilization of actual features and Unique Selling Points
for communicating to the target market in the form of effective brand communication.
The buyer behaviour is dependent on the various stages of decision making process.
The first stage is the need recognition (in this case, the need for an energy efficient vehicle),
the second stage involves the gathering of crucial information for the response of identified
need/concern (the company’s brand message and communication content will play a crucial
role), identification of alternatives is the next step (the company can be at an advantage as
they do not have any competitor operating in the industry with the similar offering and
affordable pricing structure (Martinez-Legaz and Soubeyran 2016). The business consumers
weigh the alternatives based on the Return on Investment aspect. Taking action comprises the
next step followed by reviewing of the buying decision. The level of involvement in the b2b
buying/selecting decision is crucial for a company to understand as it will determine the
organizational decision making structure. The buyer behaviour (Flinchbaugh et al. 2016). The
behavioural approach in the psychological theory believes that the external environmental

9SEGMENTATION, TARGETING AND BUYER BEHAVIOUR
stimuli is responsible for influencing the behaviour for a buying decision. The company can
attempt at building positive stimulus in respect to the change or construct a positive influence
over consumer buying decision.
Conclusion:
Positioning & customer behaviour:
The procedure involved in establishing an identity or image of brands for purpose of
constructing positive consumer perception is known as market positioning. It reflects the
ability of influencing consumer perception. Marketing positioning can allow the Electric
Vehicle company, Ace Yewt to have a competitive edge over other vehicle manufacturing
and/or assembling companies (West, Ford and Ibrahim 2015).
Understanding consumer behaviour helps in constructing the positioning strategies of
the company, the positioning statement of strategies involves the designing of consumer
perception about a specific offering (Wadman 2016). The consumer behaviour help in
understanding the consumer buying patterns of the targeted customers and it contributes
towards the base of changing the perception regarding a product or service (Baker and Saren
2016). It helps in setting the marketing mix of the company, like price structures, product
offerings and distribution strategies (Adina, Gabriela and Roxana-Denisa 2015). It also
contribute towards the building of communication content in order to reflect the core value
and core competencies of a company. It helps in channelling the consumer preference
towards the Unique Selling Points of consumers.

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