Marketing Consumer Behaviour: ACE EV Segmentation, Targeting Analysis

This report provides an analysis of consumer behavior, segmentation, and targeting strategies, utilizing the ACE EV case study. It explores both B2C and B2B marketing approaches for ACE Yewt and ACE Cargo, respectively, highlighting segmentation based on customer type and intended use. The report evaluates the commercial attractiveness of different market segments, considering factors like consumer attitudes towards electric vehicles and the competitive landscape in Australia. It identifies niche customer segments for ACE Yewt (B2C), such as gardeners and small cargo transporters, and ACE Cargo (B2B), including couriers and catering companies. The analysis incorporates consumer decision-making models to understand buying behavior, emphasizing psychological, social, cultural, and personal factors. The report concludes by outlining potential marketing strategies to effectively target these segments and position the ACE EV products in the market. Desklib offers a platform to access this and other solved assignments.

Running head: MARKETING CONSUMER BEHAVIOUR
Marketing consumer behaviour
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Contents
Segmentation and targeting.............................................................................................................2
Segment evaluation..........................................................................................................................3
B2C target........................................................................................................................................6
B2B target........................................................................................................................................7
Positioning and customer behaviour................................................................................................9
Reference.......................................................................................................................................10

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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
the marketing communications, while it helps in the prioritising the propositions and
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- based segmentation and needs based segmentation (Pyo, 2015). While the B2C
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

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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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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 vehicles were 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

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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
the business entities like couriers, home nurses, caterers, aged care providers, 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

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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.
This can also be used by the customers to transport small amount of cargo from one
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
the theory highlights that the environmental and marketing stimuli enters into buyer’s
consciousness. Due to this the buyer’s decision and the characteristics of the decision leads to

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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

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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 stages in decision making process. Underneath this model, forces that influence the
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,
social environment, political environment, regulatory changes and economic conditions
(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). The organizational goals might act as factor towards using the electric vehicles.
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

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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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